Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 17, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN EXPRESS COMPANY | |
Trading Symbol | AXP | |
Entity Central Index Key | 4962 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,015,795,685 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Non-interest revenues | ||||
Discount revenue | $4,660 | $4,620 | ||
Net card fees | 667 | 674 | ||
Travel commissions and fees | 89 | 423 | ||
Other commissions and fees | 619 | 618 | ||
Other | 468 | 501 | ||
Total non-interest revenues | 6,503 | 6,836 | ||
Interest income | ||||
Interest on loans | 1,795 | 1,711 | ||
Interest and dividends on investment securities | 41 | 46 | ||
Deposits with banks and other | 21 | 19 | ||
Total interest income | 1,857 | 1,776 | ||
Interest expense | ||||
Deposits | 103 | 94 | ||
Long-term debt and other | 307 | 345 | ||
Total interest expense | 410 | 439 | ||
Net interest income | 1,447 | 1,337 | ||
Total revenues net of interest expense | 7,950 | 8,173 | ||
Provisions for losses | ||||
Charge card | 174 | 215 | ||
Card Member loans | 235 | 250 | ||
Other | 11 | 20 | ||
Total provisions for losses | 420 | 485 | ||
Total revenues net of interest expense after provisions for losses | 7,530 | 7,688 | ||
Expenses | ||||
Marketing and promotion | 609 | 587 | ||
Card Member Rewards | 1,640 | 1,582 | ||
Card Member services and other | 261 | 222 | ||
Salaries and employee benefits | 1,305 | 1,540 | ||
Other, net | 1,399 | 1,549 | ||
Total expenses | 5,214 | 5,480 | ||
Pretax income | 2,316 | 2,208 | ||
Income tax provision | 791 | 776 | ||
Net income | $1,525 | $1,432 | ||
Earnings Per Common Share, Basic [Abstract] | ||||
Income from continuing operations attributable to common shareholders | $1.49 | [1] | $1.34 | [1] |
Earnings Per Common Share, Diluted [Abstract] | ||||
Income from continuing operations attributable to common shareholders | $1.48 | [1] | $1.33 | [1] |
Average common shares outstanding for earnings per common share: | ||||
Basic | 1,019 | [1] | 1,060 | [1] |
Diluted | 1,023 | [1] | 1,067 | [1] |
Cash dividends declared per common share | $0.26 | [1] | $0.23 | [1] |
[1] | Representsnet income less earnings allocated to participating share awards of $11 million and $12 million forthe three months endedMarch 31, 2015 and 2014, respectively. | |||
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Income [Abstract] | ||
Earnings allocated to participating share awards | $11 | $12 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $1,525 | $1,432 |
Other comprehensive (loss) income: | ||
Net unrealized securities (losses) gains, net of tax | 0 | 39 |
Foreign currency translation adjustments, net of tax | -255 | -34 |
Net unrealized pension and other postretirement benefit gains, net of tax | 23 | 27 |
Other comprehensive (loss) income | -232 | 32 |
Comprehensive income | $1,293 | $1,464 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Comprehensive Income Loss Textuals [Abstract] | ||
Net unrealized securities gains (losses), tax | $0 | $23 |
Foreign currency translation adjustments, tax | 88 | -23 |
Net unrealized pension and other postretirement benefit gains, tax | $19 | $15 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Cash and cash equivalents | ||
Cash and due from banks | $2,286 | $2,628 |
Interest-bearing deposits in other banks | 20,933 | 19,190 |
Short-term investment securities | 353 | 470 |
Total cash and cash equivalents | 23,572 | 22,288 |
Accounts receivable | ||
Card Member receivables (includes gross receivables available to settle obligations of consolidated variable interest entities | 43,274 | 44,386 |
Other receivables, less reserves | 2,354 | 2,614 |
Loans | ||
Card Member loans (includes gross loans available to settle obligations of consolidated variable interest entities | 65,705 | 69,184 |
Other loans, less reserves | 951 | 920 |
Investment securities | 4,417 | 4,431 |
Premises and equipment, less accumulated depreciation and amortization | 3,940 | 3,938 |
Other assets (includes restricted cash of consolidated variable interest entities | 10,471 | 11,342 |
Total assets | 154,684 | 159,103 |
Liabilities | ||
Customer deposits | 44,928 | 44,171 |
Travelers Cheques and other prepaid products | 3,364 | 3,673 |
Accounts payable | 10,643 | 11,300 |
Short-term borrowings (includes debt issued by consolidated variable interest entities | 2,361 | 3,480 |
Long-term debt (includes debt issued by consolidated variable interest entities | 54,712 | 57,955 |
Other liabilities | 16,846 | 17,851 |
Total liabilities | 132,854 | 138,430 |
Shareholders' Equity | ||
Preferred shares | 0 | 0 |
Common shares | 204 | 205 |
Additional paid-in capital | 13,670 | 12,874 |
Retained earnings | 10,107 | 9,513 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, net of tax | 96 | 96 |
Foreign currency translation adjustments, net of tax | -1,754 | -1,499 |
Net unrealized pension and other postretirement benefit losses, net of tax | -493 | -516 |
Total accumulated other comprehensive loss | -2,151 | -1,919 |
Total shareholders equity | 21,830 | 20,673 |
Total liabilities and shareholders equity | $154,684 | $159,103 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Card Member receivables, gross | $43,703 | $44,851 |
Card Member loans, gross | 66,835 | 70,385 |
Other assets | 10,471 | 11,342 |
Short-term borrowings (includes debt issued by consolidated variable interest entities | 2,361 | 3,480 |
Long-term debt | 54,712 | 57,955 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 226 | 204 |
Accounts receivable | ||
Card Member receivables, reserves | 429 | 465 |
Other receivables, reserves | 56 | 61 |
Loans | ||
Card Member loans, reserves | 1,130 | 1,201 |
Other loans, net of reserves | 13 | 12 |
Accumulated depreciation and amortization | 6,369 | 6,270 |
Restricted cash | 54 | 64 |
Common shares, par value | $0.20 | $0.20 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 1,016,000,000 | 1,023,000,000 |
Common shares, outstanding | 1,016,000,000 | 1,023,000,000 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock Shares Issued | 1,600 | 750 |
Preferred Stock, Shares Outstanding | 1,600 | 750 |
Preferred shares, par value | $1.66 | $1.66 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, net of tax | 51 | 52 |
Foreign currency translation adjustments, net of tax | -229 | -317 |
Net unrealized pension and other postretirement benefit losses, net of tax | -204 | -223 |
Variable Interest Enterprise [Member] | ||
Card Member receivables, gross | 6,067 | 7,025 |
Card Member loans, gross | 27,600 | 30,115 |
Long-term debt | 16,419 | 19,516 |
Loans | ||
Restricted cash | $54 | $64 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows from Operating Activities | ||
Net income | $1,525 | $1,432 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Provisions for losses | 420 | 485 |
Depreciation and amortization | 251 | 249 |
Deferred taxes and other | 219 | 44 |
Stock-based compensation | 71 | 88 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||
Other receivables | 175 | 297 |
Other assets | 957 | 478 |
Accounts payable and other liabilities | -1,230 | 607 |
Travelers Cheques and other prepaid products | -262 | -395 |
Net cash provided by operating activities | 2,126 | 3,285 |
Cash Flows from Investing Activities | ||
Sales of available-for-sale investment securities | 0 | 44 |
Maturities and redemptions of available-for-sale investment securities | 439 | 354 |
Purchase of investments | -447 | -71 |
Net increase (decrease) in Card Member receivables/loans | 3,129 | 2,072 |
Purchase of premises and equipment, net of sales | -256 | -226 |
Business acquisitions, net of cash acquired | -59 | -6 |
Net increase (decrease) in restricted cash | 15 | -610 |
Net cash provided by investing activities | 2,821 | 1,557 |
Cash Flows from Financing Activities | ||
Net increase in customer deposits | 784 | 918 |
Net decrease in short-term borrowings | -1,062 | -2,245 |
Issuance of long-term debt | 0 | 2,240 |
Principal payments on long-term debt | -3,100 | -3,500 |
Issuance of American Express preferred shares | 841 | 0 |
Issuance of American Express common shares | 54 | 233 |
Repurchase of American Express common shares | -791 | -961 |
Dividends paid | -268 | -246 |
Net cash used in financing activities | -3,542 | -3,561 |
Effect of foreign currency exchange rates on cash and cash equivalents | -121 | -27 |
Net increase in cash and cash equivalents | 1,284 | 1,254 |
Cash and cash equivalents at beginning of year | 22,288 | 19,486 |
Cash and cash equivalents at end of year | $23,572 | $20,740 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Cash Flows [Abstract] | ||
Sale of premises and equipment | $17 | $2 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation | 1. Basis of Presentation |
The Company | |
American Express Company (the Company) is a global services company that provides customers with access to products, insights and experiences that enrich lives and build business success. The Company’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Business Travel (GBT JV). Prior to July 1, 2014, the business travel operations were wholly owned. The Company also focuses on generating alternative sources of revenue on a global basis in areas such as online and mobile payments and fee-based services. The Company’s 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 direct mail, online applications, targeted direct and third-party sales forces and direct response advertising. | |
The accompanying Consolidated Financial Statements should be read in conjunction with the consolidated financial statements incorporated by reference in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the Annual Report). If not materially different, certain footnote disclosures included in the Annual Report have been omitted from this Quarterly Report on Form 10-Q. | |
The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ. | |
Certain reclassifications of prior period amounts have been made to conform to the current period presentation. Additionally, in the three months ended March 31, 2015, the Company changed the classification related to certain payments to partners, reducing both discount revenue and marketing and promotion expense. The misclassification in prior periods has been revised to conform to the current period presentation. None of the prior period financial statements were materially misstated from this misclassification. | |
Recently Issued Accounting Standards | |
Accounting Standards Update (ASU) No. 2014-09, Revenue Recognition (Topic 606): Revenue from Contracts with Customers was issued on May 28, 2014. The guidance establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. The guidance supersedes most of the current revenue recognition requirements, and as currently written will be effective January 1, 2017; however, the Financial Accounting Standards Board plans to publish an exposure draft proposing to extend the effective date to January 1, 2018. The Company continues to evaluate the impact this guidance, including the method of implementation, will have on its financial position, results of operations and cash flows, among other items. | |
ASU No. 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects was issued on January 15, 2014. Provided certain conditions are met, this standard permits entities to account for investments in Qualified Affordable Housing projects using the proportional amortization method. The standard also requires new disclosures about all investments in Qualified Affordable Housing projects irrespective of the method used to account for the investments. The Company has adopted this guidance in the first quarter of 2015 and has elected not to use the proportional amortization method, but continues to account for these investments using the equity method of accounting, which has been the Company’s historical practice. | |
During the three months ended March 31, 2015 and 2014, the Company recognized equity method losses related to Qualified Affordable Housing of $9 million and $8 million, respectively, which was recognized in Other, net expense, and associated tax credits of $12 million and $9 million, respectively, which was recognized within Income tax provision. The carrying value of these investments was $512 million and $522 million as of March 31, 2015 and December 31, 2014, respectively. In addition, the Company is contractually committed to provide additional funding related to certain of these investments resulting in a liability of $130 million for unfunded commitments, as of March 31, 2015, which is expected to be paid between 2015 and 2023. | |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2015 | |
Business Combination Disclosure [Abstract] | |
Divestitures | 2. Divestitures |
On June 30, 2014, the Company completed a transaction to establish a non-consolidated joint venture comprising the former Global Business Travel (GBT) operations of the Company and an external cash investment. As a result of this transaction, the Company deconsolidated the GBT net assets, effective June 30, 2014, and began accounting for the GBT JV as an equity method investment reported in Other assets within the Consolidated Balance Sheet. Prior to the deconsolidation, the carrying amount of GBT’s assets and liabilities were not material to the Company’s financial position and its operations were reported within the Global Commercial Services (GCS) segment. |
Accounts_Receivable_and_Loans
Accounts Receivable and Loans | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Loans Notes Trade And Other Receivables Disclosure [Abstract] | ||||||||||||||||||||||
Accounts Receivable and Loans | 3. Accounts Receivable and Loans | |||||||||||||||||||||
The Company’s charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively. | ||||||||||||||||||||||
Accounts receivable by segment as of March 31, 2015 and December 31, 2014 consisted of: | ||||||||||||||||||||||
(Millions) | 2015 | 2014 | ||||||||||||||||||||
U.S. Card Services (a) | $ | 21,501 | $ | 22,468 | ||||||||||||||||||
International Card Services | 6,381 | 7,653 | ||||||||||||||||||||
Global Commercial Services (b) | 15,697 | 14,583 | ||||||||||||||||||||
Global Network & Merchant Services (c) | 124 | 147 | ||||||||||||||||||||
Card Member receivables (d) | 43,703 | 44,851 | ||||||||||||||||||||
Less: Reserve for losses | 429 | 465 | ||||||||||||||||||||
Card Member receivables, net | $ | 43,274 | $ | 44,386 | ||||||||||||||||||
Other receivables, net (e) | $ | 2,354 | $ | 2,614 | ||||||||||||||||||
Includes $6.1 billion and $7.0 billion of gross Card Member receivables available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Includes $638 million and $636 million due from airlines, of which Delta Air Lines comprises $577 million and $606 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Includes receivables primarily related to the Company’s International Currency Card portfolios. | ||||||||||||||||||||||
Includes approximately $12.0 billion and $13.3 billion of Card Member receivables outside the U.S. as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Other receivables primarily represent amounts related to (i) certain merchants for billed discount revenue and (ii) Global Network Services (GNS) partner banks for items such as royalty and franchise fees. Other receivables are presented net of reserves for losses of $56 million and $61 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Loans by segment as of March 31, 2015 and December 31, 2014 consisted of: | ||||||||||||||||||||||
(Millions) | 2015 | 2014 | ||||||||||||||||||||
U.S. Card Services(a) | $ | 59,929 | $ | 62,592 | ||||||||||||||||||
International Card Services | 6,848 | 7,744 | ||||||||||||||||||||
Global Commercial Services | 58 | 49 | ||||||||||||||||||||
Card Member loans | 66,835 | 70,385 | ||||||||||||||||||||
Less: Reserve for losses | 1,130 | 1,201 | ||||||||||||||||||||
Card Member loans, net | $ | 65,705 | $ | 69,184 | ||||||||||||||||||
Other loans, net(b) | $ | 951 | $ | 920 | ||||||||||||||||||
Includes approximately $27.6 billion and $30.1 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Other loans primarily represent loans to merchants and a store card loan portfolio. Other loans are presented net of reserves for losses of $13 million and $12 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Card Member Loans and Card Member Receivables Aging | ||||||||||||||||||||||
Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||
30-59 | 60-89 | 90+ | ||||||||||||||||||||
Days | Days | Days | ||||||||||||||||||||
Past | Past | Past | ||||||||||||||||||||
2015 (Millions) | Current | Due | Due | Due | Total | |||||||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 59,356 | $ | 171 | $ | 126 | $ | 276 | $ | 59,929 | ||||||||||||
International Card Services | 6,728 | 40 | 26 | 54 | 6,848 | |||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | $ | 21,144 | $ | 124 | $ | 87 | $ | 146 | $ | 21,501 | ||||||||||||
International Card Services | 6,282 | 30 | 22 | 47 | 6,381 | |||||||||||||||||
Global Commercial Services(a) | (b) | (b) | (b) | 110 | 15,697 | |||||||||||||||||
30-59 | 60-89 | 90+ | ||||||||||||||||||||
Days | Days | Days | ||||||||||||||||||||
Past | Past | Past | ||||||||||||||||||||
2014 (Millions) | Current | Due | Due | Due | Total | |||||||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 61,995 | $ | 179 | $ | 128 | $ | 290 | $ | 62,592 | ||||||||||||
International Card Services | 7,621 | 39 | 27 | 57 | 7,744 | |||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | $ | 22,096 | $ | 129 | $ | 72 | $ | 171 | $ | 22,468 | ||||||||||||
International Card Services | 7,557 | 29 | 20 | 47 | 7,653 | |||||||||||||||||
Global Commercial Services(a) | (b) | (b) | (b) | 120 | 14,583 | |||||||||||||||||
For Card Member receivables in GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. | ||||||||||||||||||||||
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 three months ended March 31: | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Net Write-Off Rate | Net Write-Off Rate | |||||||||||||||||||||
30+ Days | 30+ Days | |||||||||||||||||||||
Principal, | Past Due | Principal, | Past Due | |||||||||||||||||||
Principal | Interest, & | as a % of | Principal | Interest, & | as a % of | |||||||||||||||||
Only | (a) | Fees | (a) | Total | Only | (a) | Fees | (a) | Total | |||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | 1.5 | % | 1.7 | % | 1 | % | 1.7 | % | 1.9 | % | 1.1 | % | ||||||||||
International Card Services | 2 | % | 2.5 | % | 1.8 | % | 2.2 | % | 2.7 | % | 1.7 | % | ||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | 2.2 | % | 2.4 | % | 1.7 | % | 1.8 | % | 2 | % | 1.8 | % | ||||||||||
International Card Services | 1.9 | % | 2 | % | 1.6 | % | 1.9 | % | 2 | % | 1.4 | % | ||||||||||
2015 | 2014 | |||||||||||||||||||||
Net Loss | Net Loss | |||||||||||||||||||||
Ratio as | 90 Days | Ratio as | 90 Days | |||||||||||||||||||
a % of | Past Billing | a % of | Past Billing | |||||||||||||||||||
Charge | as a % of | Charge | as a % of | |||||||||||||||||||
Volume | Receivables | Volume | Receivables | |||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
Global Commercial Services | 0.1 | % | 0.7 | % | 0.09 | % | 0.7 | % | ||||||||||||||
The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. The three months ended March 31, 2015, reflects a change in the timing of charge-offs for Card Member loans and receivables in certain modification programs from 180 days past due to 120 days past due. | ||||||||||||||||||||||
Impaired Card Member 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 the Company will be unable to collect all amounts due according to the original contractual terms of the Card Member agreement. In certain cases these Card Member loans and receivables are included in one of the Company’s various modification programs. Beginning January 1, 2015, on a prospective basis the Company will continue to classify Card Member accounts that have exited a modification program as a Troubled Debt Restructuring (TDR), with such accounts identified as “Out of Program TDRs.” | ||||||||||||||||||||||
The following table provides additional information with respect to the Company’s impaired Card Member loans (which are not significant for GCS) and impaired Card Member receivables (which are not significant for International Card Services (ICS) and GCS) as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||
Over 90 days | Accounts Classified as a TDR(c)(d) | |||||||||||||||||||||
Past Due & | Total | Unpaid | ||||||||||||||||||||
Accruing | Non- | Out of | Impaired | Principal | Allowance | |||||||||||||||||
2015 (Millions) | Interest | (a) | Accruals | (b) | In Program | Program | Balance | Balance | for TDRs | |||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 171 | $ | 220 | $ | 261 | $ | 44 | $ | 696 | $ | 650 | $ | 65 | ||||||||
International Card Services | 54 | ― | ― | ― | 54 | 54 | ― | |||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | ― | ― | 27 | 1 | 28 | 26 | 17 | |||||||||||||||
Total | $ | 225 | $ | 220 | $ | 288 | $ | 45 | $ | 778 | $ | 730 | $ | 82 | ||||||||
As of December 31, 2014 | ||||||||||||||||||||||
Over 90 days | ||||||||||||||||||||||
Past Due & | Total | Unpaid | ||||||||||||||||||||
Accruing | Non- | In Program | Impaired | Principal | Allowance | |||||||||||||||||
2014 (Millions) | Interest | (a) | Accruals | (b) | TDRs(c) | Balance | Balance | for TDRs | ||||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 161 | $ | 241 | $ | 286 | $ | 688 | $ | 646 | $ | 67 | ||||||||||
International Card Services | 57 | ― | ― | 57 | 56 | ― | ||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | ― | ― | 48 | 48 | 48 | 35 | ||||||||||||||||
Total | $ | 218 | $ | 241 | $ | 334 | $ | 793 | $ | 750 | $ | 102 | ||||||||||
The Company’s policy is generally to accrue interest through the date of write-off (i.e., 180 days past due). The Company establishes reserves for interest that it believes will not be collected. Amounts presented exclude loans classified as a TDR. | ||||||||||||||||||||||
Non-accrual loans not in modification programs include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest. | ||||||||||||||||||||||
Accounts classified as a TDR includes $31 million and $34 million that are non-accrual and $18 million and $26 million that are past due 90 days and still accruing interest as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
In Program TDRs include Card Member accounts that are currently enrolled within a modification program. Out of Program TDRs, include $34 million of Card Member accounts that have successfully completed a modification program and $11 million of Card Member accounts that were not in compliance with the terms of the modification programs. | ||||||||||||||||||||||
The following table provides information with respect to the Company’s average balances of, and interest income recognized from, impaired Card Member loans (which is not significant for GCS) and average balance of impaired Card Member receivables (which is not significant for ICS and GCS) for the three months ended March 31: | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Average | Average | |||||||||||||||||||||
Balance of | Interest | Balance of | Interest | |||||||||||||||||||
Impaired | Income | Impaired | Income | |||||||||||||||||||
(Millions) | Loans | Recognized | Loans | Recognized | ||||||||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 692 | $ | 13 | $ | 793 | $ | 16 | ||||||||||||||
International Card Services | 56 | 4 | 63 | 4 | ||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | 38 | ― | 50 | ― | ||||||||||||||||||
Total | $ | 786 | $ | 17 | $ | 906 | $ | 20 | ||||||||||||||
Card Member Loans and Receivables Modified as TDRs | ||||||||||||||||||||||
The following table provides additional information with respect to the U.S. Card Services (USCS) Card Member loans and receivables modified as TDRs for the three months ended March 31, 2015 and 2014. The ICS and GCS Card Member loans and receivables modifications were not significant. | ||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Number of | Outstanding | Average Interest | Average Payment | |||||||||||||||||||
Accounts | Balances | (a)(b) | Rate Reduction | Term Extensions | ||||||||||||||||||
(in thousands) | ($ in millions) | (% points) | (# of months) | |||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||
Card Member Loans | 11 | $ | 80 | 12 | (c) | |||||||||||||||||
Card Member Receivables | 3 | 40 | (d) | 12 | ||||||||||||||||||
Total | 14 | $ | 120 | |||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Number of | Outstanding | Average Interest | Average Payment | |||||||||||||||||||
Accounts | Balances | (a)(b) | Rate Reduction | Term Extensions | ||||||||||||||||||
(in thousands) | ($ in millions) | (% points) | (# of months) | |||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||
Card Member Loans | 12 | $ | 96 | 14 | (c) | |||||||||||||||||
Card Member Receivables | 4 | 47 | (d) | 12 | ||||||||||||||||||
Total | 16 | $ | 143 | |||||||||||||||||||
Represents the outstanding balance immediately prior to modification. Modifications did not reduce the aggregate principal balance. | ||||||||||||||||||||||
The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. | ||||||||||||||||||||||
For Card Member loans, there have been no payment term extensions. | ||||||||||||||||||||||
The Company does not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. | ||||||||||||||||||||||
The following table provides information for the three months ended March 31, 2015 and 2014, with respect to the USCS Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A Card Member is considered in default of a modification program after one and up to two consecutive missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. The defaulted ICS Card Member loan and receivable modifications were not significant. | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Aggregated | Aggregated | |||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||
Number of | Balances | Number of | Balances | |||||||||||||||||||
(Accounts in thousands, Dollars in millions) | Accounts | Upon Default(a) | Accounts | Upon Default(a) | ||||||||||||||||||
Troubled Debt Restructurings That | ||||||||||||||||||||||
Subsequently Defaulted: | ||||||||||||||||||||||
Card Member Loans | 2 | $ | 10 | 2 | $ | 20 | ||||||||||||||||
Card Member Receivables | 1 | 1 | 1 | 7 | ||||||||||||||||||
Total | 3 | $ | 11 | 3 | $ | 27 | ||||||||||||||||
The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. | ||||||||||||||||||||||
Reserves_for_Losses
Reserves for Losses | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Reserves For Losses Card Member Receivables And Loans Disclosure [Abstract] | |||||||||
Reserve for Losses | 4. Reserves for Losses | ||||||||
Reserves for losses relating to Card Member loans and receivables represent management’s best estimate of the probable inherent losses in the Company’s outstanding portfolio of loans and receivables, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. | |||||||||
Changes in Card Member Receivables Reserve for Losses | |||||||||
The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31: | |||||||||
(Millions) | 2015 | 2014 | |||||||
Balance, January 1 | $ | 465 | $ | 386 | |||||
Provisions(a) | 174 | 215 | |||||||
Net write-offs(b) | -199 | -170 | |||||||
Other(c) | -11 | -17 | |||||||
Balance, March 31 | $ | 429 | $ | 414 | |||||
Provisions for principal and fee reserve components. | |||||||||
Consists of principal and fee components, less recoveries of $99 million and $92 million, including net write-offs from TDRs of $31 million and $2 million, for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Beginning in the first quarter 2014, reserves for card-related fraud losses of $(7) million are included in Other liabilities. Also includes foreign currency translation adjustments of $(7) million and nil for the three months ended March 31, 2015 and 2014, respectively, and other items of $(4) million and $(10) million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Card Member Receivables Evaluated Individually and Collectively for Impairment | |||||||||
The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of March 31, 2015 and December 31, 2014: | |||||||||
(Millions) | 2015 | 2014 | |||||||
Card Member receivables evaluated individually for impairment(a) | $ | 28 | $ | 48 | |||||
Related reserves (a) | $ | 17 | $ | 35 | |||||
Card Member receivables evaluated collectively for impairment | $ | 43,675 | $ | 44,803 | |||||
Related reserves (b) | $ | 412 | $ | 430 | |||||
Represents receivables modified as a TDR and related reserves. | |||||||||
The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. | |||||||||
Changes in Card Member Loans Reserve for Losses | |||||||||
The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31: | |||||||||
(Millions) | 2015 | 2014 | |||||||
Balance, January 1 | $ | 1,201 | $ | 1,261 | |||||
Provisions(a) | 235 | 250 | |||||||
Net write-offs | |||||||||
Principal(b) | -259 | -280 | |||||||
Interest and fees(b) | -43 | -42 | |||||||
Other(c) | -4 | 2 | |||||||
Balance, March 31 | $ | 1,130 | $ | 1,191 | |||||
Provisions for principal, interest and fee reserve components. | |||||||||
Consists of principal write-offs, less recoveries of $103 million and $107 million, including net write-offs/(recoveries) from TDRs of $16 million and $(2) million, for the three months ended March 31, 2015 and 2014, respectively. Recoveries of interest and fees were de minimis. | |||||||||
Beginning in the first quarter 2014, reserves for card related fraud losses of $(6) million are included in Other liabilities. Also includes foreign currency translation adjustments of $(7) million and $(1) million for the three months ended March 31, 2015 and 2014, respectively, and other items of $3 million and $9 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Card Member Loans Evaluated Individually and Collectively for Impairment | |||||||||
The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of March 31, 2015 and December 31, 2014: | |||||||||
(Millions) | 2015 | 2014 | |||||||
Card Member loans evaluated individually for impairment(a) | $ | 305 | $ | 286 | |||||
Related reserves (a) | $ | 65 | $ | 67 | |||||
Card Member loans evaluated collectively for impairment(b) | $ | 66,530 | $ | 70,099 | |||||
Related reserves (b) | $ | 1,065 | $ | 1,134 | |||||
Represents loans modified as a TDR and related reserves. | |||||||||
Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans, and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. | |||||||||
Investment_Securities
Investment Securities | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||
Investment Securities | 5. Investment Securities | |||||||||||||||||||||||||
Investment securities principally include debt securities the Company classifies as available-for-sale and carries at fair value on the Consolidated Balance Sheets, with unrealized gains (losses) recorded in Accumulated Other Comprehensive Income (AOCI), net of income taxes. Realized gains and losses are recognized on a trade-date basis in results of operations upon disposition of the securities using the specific identification method. | ||||||||||||||||||||||||||
The following is a summary of investment securities as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Gross | Gross | Estimated | Gross | Gross | Estimated | |||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Description of Securities (Millions) | Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||
State and municipal obligations | $ | 3,196 | $ | 126 | $ | -1 | $ | 3,321 | $ | 3,366 | $ | 129 | $ | -2 | $ | 3,493 | ||||||||||
U.S. Government agency | ||||||||||||||||||||||||||
obligations | 2 | ― | ― | 2 | 3 | ― | ― | 3 | ||||||||||||||||||
U.S. Government treasury | ||||||||||||||||||||||||||
obligations | 346 | 6 | ― | 352 | 346 | 4 | ― | 350 | ||||||||||||||||||
Corporate debt securities | 35 | 2 | ― | 37 | 37 | 3 | ― | 40 | ||||||||||||||||||
Mortgage-backed securities (a) | 120 | 6 | ― | 126 | 128 | 8 | ― | 136 | ||||||||||||||||||
Equity securities | ― | 1 | ― | 1 | ― | 1 | ― | 1 | ||||||||||||||||||
Foreign government bonds and | ||||||||||||||||||||||||||
obligations | 518 | 11 | ― | 529 | 350 | 9 | ― | 359 | ||||||||||||||||||
Other (b) | 50 | ― | -1 | 49 | 50 | ― | -1 | 49 | ||||||||||||||||||
Total | $ | 4,267 | $ | 152 | $ | -2 | $ | 4,417 | $ | 4,280 | $ | 154 | $ | -3 | $ | 4,431 | ||||||||||
Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. | ||||||||||||||||||||||||||
Other comprises investments in various mutual funds. | ||||||||||||||||||||||||||
The following table provides information about the Company’s investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Less than 12 months | 12 months or more | |||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Description of Securities (Millions) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
State and municipal obligations | $ | ― | $ | ― | $ | 40 | $ | -1 | $ | ― | $ | ― | $ | 72 | $ | -2 | ||||||||||
Other | ― | ― | 33 | -1 | ― | ― | 33 | -1 | ||||||||||||||||||
Total | $ | ― | $ | ― | $ | 73 | $ | -2 | $ | ― | $ | ― | $ | 105 | $ | -3 | ||||||||||
The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
Ratio of Fair Value to | Gross | Gross | Gross | |||||||||||||||||||||||
Amortized Cost | Number of | Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | Estimated | Unrealized | |||||||||||||||||
(Dollars in millions) | Securities | Fair Value | Losses | Securities | Fair Value | Losses | Securities | Fair Value | Losses | |||||||||||||||||
2015:00:00 | ||||||||||||||||||||||||||
90%–100% | ― | $ | ― | $ | ― | 11 | $ | 73 | $ | -2 | 11 | $ | 73 | $ | -2 | |||||||||||
Total as of March 31, 2015 | ― | $ | ― | $ | ― | 11 | $ | 73 | $ | -2 | 11 | $ | 73 | $ | -2 | |||||||||||
2014:00:00 | ||||||||||||||||||||||||||
90%–100% | ― | $ | ― | $ | ― | 15 | $ | 105 | $ | -3 | 15 | $ | 105 | $ | -3 | |||||||||||
Total as of December 31, 2014 | ― | $ | ― | $ | ― | 15 | $ | 105 | $ | -3 | 15 | $ | 105 | $ | -3 | |||||||||||
The gross unrealized losses are attributed to overall wider credit spreads for state and municipal securities, wider credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all as compared to those prevailing when the investment securities were acquired. | ||||||||||||||||||||||||||
Overall, for the investment securities in gross unrealized loss positions (i) the Company does not intend to sell the investment securities, (ii) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and (iii) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment during the periods presented. | ||||||||||||||||||||||||||
Supplemental Information | ||||||||||||||||||||||||||
Gross realized gains on the sales of investment securities, included in Other revenues, were nil and $39 million for the three months ended March 31, 2015 and 2014, respectively. There were no realized losses for the three months ended March 31, 2015 or 2014. | ||||||||||||||||||||||||||
Contractual maturities of investment securities with stated maturities as of March 31, 2015 were as follows: | ||||||||||||||||||||||||||
Estimated | ||||||||||||||||||||||||||
(Millions) | Cost | Fair Value | ||||||||||||||||||||||||
Due within 1 year | $ | 736 | $ | 737 | ||||||||||||||||||||||
Due after 1 year but within 5 years | 331 | 338 | ||||||||||||||||||||||||
Due after 5 years but within 10 years | 239 | 255 | ||||||||||||||||||||||||
Due after 10 years | 2,911 | 3,037 | ||||||||||||||||||||||||
Total | $ | 4,217 | $ | 4,367 | ||||||||||||||||||||||
The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. |
Asset_Securitizations
Asset Securitizations | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Asset Securitizations [Abstract] | |||||||
Asset Securitizations | 6. Asset Securitizations | ||||||
The Company periodically securitizes Card Member receivables and loans arising from its card business through the transfer of those assets to securitization trusts. The trusts then issue securities to third-party investors, collateralized by the transferred assets. | |||||||
The following table provides information on the restricted cash held by the American Express Issuance Trust II (the Charge Trust) and the American Express Credit Account Master Trust (the Lending Trust) as of March 31, 2015 and December 31, 2014, included in Other assets on the Company’s Consolidated Balance Sheets: | |||||||
(Millions) | 2015 | 2014 | |||||
Charge Trust | $ | 1 | $ | 2 | |||
Lending Trust | 53 | 62 | |||||
Total | $ | 54 | $ | 64 | |||
These amounts relate to collections of Card Member receivables and loans to be used by the trusts to fund future expenses and obligations, including interest paid on investor securities, credit losses and upcoming debt maturities. | |||||||
American Express Travel Related Services Company, Inc. (TRS), which is a consolidated subsidiary of the Company, is the primary beneficiary of both the trusts. Excluding its consolidated subsidiaries, TRS owns approximately $1.2 billion of subordinated securities issued by the Lending Trust as of March 31, 2015 and December 31, 2014. | |||||||
Under the respective terms of the Charge Trust and the Lending 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 investor securities. During the three months ended March 31, 2015 and the year ended December 31, 2014, no such triggering events occurred. |
Customer_Deposits
Customer Deposits | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Deposit Liabilities Disclosures [Abstract] | ||||||||||
Customer Deposits | 7. Customer Deposits | |||||||||
As of March 31, 2015 and December 31, 2014, customer deposits were categorized as interest bearing or non-interest bearing, as follows: | ||||||||||
(Millions) | 2015 | 2014 | ||||||||
U.S.: | ||||||||||
Interest bearing | $ | 44,142 | $ | 43,279 | ||||||
Non-interest bearing (includes Card Member credit balances of: | ||||||||||
2015, $317 million; 2014, $372 million) | 356 | 418 | ||||||||
Non-U.S.: | ||||||||||
Interest bearing | 113 | 115 | ||||||||
Non-interest bearing (includes Card Member credit balances of: | ||||||||||
2015, $306 million; 2014, $347 million) | 317 | 359 | ||||||||
Total customer deposits | $ | 44,928 | $ | 44,171 | ||||||
Customer deposits by deposit type as of March 31, 2015 and December 31, 2014 were as follows: | ||||||||||
(Millions) | 2015 | 2014 | ||||||||
U.S. retail deposits: | ||||||||||
Savings accounts – Direct | $ | 27,508 | $ | 26,159 | ||||||
Certificates of deposit: | ||||||||||
Direct | 317 | 333 | ||||||||
Third-party | 7,384 | 7,838 | ||||||||
Sweep accounts – Third-party | 8,933 | 8,949 | ||||||||
Other retail deposits: | ||||||||||
Non-U.S. deposits and U.S. non-interest bearing deposits | 163 | 173 | ||||||||
Card Member credit balances ― U.S. and non-U.S. | 623 | 719 | ||||||||
Total customer deposits | $ | 44,928 | $ | 44,171 | ||||||
The scheduled maturities of certificates of deposit as of March 31, 2015 were as follows: | ||||||||||
(Millions) | U.S. | Non-U.S. | Total | |||||||
2015 | $ | 1,115 | $ | 21 | $ | 1,136 | ||||
2016 | 2,159 | 1 | 2,160 | |||||||
2017 | 1,493 | ― | 1,493 | |||||||
2018 | 1,535 | ― | 1,535 | |||||||
2019 | 1,327 | ― | 1,327 | |||||||
After 5 years | 72 | ― | 72 | |||||||
Total | $ | 7,701 | $ | 22 | $ | 7,723 | ||||
As of March 31, 2015 and December 31, 2014, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: | ||||||||||
(Millions) | 2015 | 2014 | ||||||||
U.S. | $ | 109 | $ | 111 | ||||||
Non-U.S. | 17 | 17 | ||||||||
Total | $ | 126 | $ | 128 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Contingencies Disclosure [Abstract] | |
Contingencies | 8. Contingencies |
The Company is involved in a number of legal proceedings concerning matters arising out of the conduct of its business activities and is periodically subject to governmental and regulatory examinations, information gathering requests, subpoenas, inquiries and investigations (collectively, governmental examinations). As of March 31, 2015, the Company and various of its subsidiaries were named as a defendant or were otherwise involved in numerous legal proceedings and governmental examinations in various jurisdictions, both in and outside the U.S. The Company discloses its material legal proceedings and governmental examinations under Part II, Item 1. “Legal Proceedings” in this Quarterly Report on Form 10-Q and Part I, Item 3. “Legal Proceedings” in the Annual Report (collectively, Legal Proceedings). | |
The Company has recorded liabilities for certain of its outstanding legal proceedings and governmental examinations. A liability is accrued 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 accrued liability. The Company evaluates, on a quarterly basis, developments in legal proceedings and governmental examinations that could cause an increase or decrease in the amount of the liability that has been previously accrued or a revision to the disclosed estimated range of possible losses, as applicable. | |
The Company’s legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members. These legal proceedings, as well as governmental examinations, involve various lines of business of the Company and a variety of claims (including, but not limited to, common law tort, contract, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against the Company specify the damages claimed by the plaintiff, 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 the Company 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 the Company to estimate a range of possible loss. | |
Other matters have progressed sufficiently through discovery and/or development of important factual information and legal issues so that the Company is able to estimate a range of possible loss. Accordingly, for those legal proceedings and governmental examinations disclosed or referred to in Legal Proceedings where a loss is reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, and for which the Company is able to estimate a range of possible loss, the current estimated range is zero to $360 million in excess of any accrued liability related to these matters. This aggregate range represents management’s estimate of possible loss with respect to these matters and is based on currently available information. This estimated range of possible loss does not represent the Company’s maximum loss exposure. The legal proceedings and governmental examinations underlying the estimated range will change from time to time and actual results may vary significantly from current estimates. | |
Based on its current knowledge, and taking into consideration its litigation-related liabilities, the Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding or governmental examination that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other factors, the size of the loss or liability imposed and the level of the Company’s earnings for that period. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||
Derivatives and Hedging Activities | 9. Derivatives and Hedging Activities | ||||||||||||||||||||||
The Company uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rate, foreign exchange rates, and equity index or price, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of the Company’s market risk management. The Company does not engage in derivatives for trading purposes. | |||||||||||||||||||||||
In relation to the Company’s credit risk, under the terms of the derivative agreements it has with its various counterparties, the Company is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Based on the assessment of credit risk of the Company’s derivative counterparties as of March 31, 2015 and December 31, 2014, the Company does not have derivative positions that warrant credit valuation adjustments. | |||||||||||||||||||||||
The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||
Other Assets | Other Liabilities | ||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||
(Millions) | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Fair value hedges | $ | 372 | $ | 314 | $ | ― | $ | 4 | |||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||
Net investment hedges | 408 | 492 | 115 | 46 | |||||||||||||||||||
Total derivatives designated as hedging instruments | 780 | 806 | 115 | 50 | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts, including certain embedded derivatives(a) | 152 | 185 | 148 | 114 | |||||||||||||||||||
Total derivatives, gross | 932 | 991 | 263 | 164 | |||||||||||||||||||
Less: Cash collateral netting(b) | -233 | -158 | ― | -4 | |||||||||||||||||||
Derivative asset and derivative liability netting(c) | -173 | -122 | -173 | -122 | |||||||||||||||||||
Total derivatives, net(d) | $ | 526 | $ | 711 | $ | 90 | $ | 38 | |||||||||||||||
Includes foreign currency derivatives embedded in certain operating agreements. | |||||||||||||||||||||||
Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. Additionally, the Company received non-cash collateral from a counterparty in the form of security interests in U.S. Treasury securities with a fair value of $43 million and $91 million as of March 31, 2015 and December 31, 2014, respectively, none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $483 million and $620 million as of March 31, 2015 and December 31, 2014, respectively, but did not reduce the net exposure on the Company’s Consolidated Balance Sheets. Additionally, the Company posted $111 million and $114 million as of March 31, 2015 and December 31, 2014, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Company’s Consolidated Balance Sheets and are not netted against the derivative balances. | |||||||||||||||||||||||
Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. | |||||||||||||||||||||||
The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within Other assets and Other liabilities on the Company’s Consolidated Balance Sheets. | |||||||||||||||||||||||
A majority of the Company’s derivative assets and liabilities as of March 31, 2015 and December 31, 2014 are subject to master netting agreements with its derivative counterparties. In addition, the Company has no derivative amounts subject to enforceable master netting arrangements that are not offset on the Company’s Consolidated Balance Sheets. | |||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||||
The Company is exposed to interest rate risk associated with its fixed-rate long-term debt. The Company uses interest rate swaps to economically convert certain fixed-rate debt obligations to floating-rate obligations at the time of issuance. As of both March 31, 2015 and December 31, 2014, the Company hedged $17.6 billion of its fixed-rate debt to floating-rate debt using interest rate swaps. | |||||||||||||||||||||||
Total Return Contract | |||||||||||||||||||||||
The Company hedged its exposure to changes in the fair value of its equity investment in Industrial and Commercial Bank of China (ICBC) in local currency. The Company used a total return contract (TRC) to transfer its exposure to its derivative counterparty. On July 18, 2014, the Company sold its remaining shares in ICBC and terminated the TRC. | |||||||||||||||||||||||
The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s fair value hedges for the three months ended March 31: | |||||||||||||||||||||||
For the Three Months Ended March 31: (Millions) | |||||||||||||||||||||||
Gains (losses) recognized in income | |||||||||||||||||||||||
Derivative contract | Hedged item | Net hedge | |||||||||||||||||||||
Amount | Amount | ineffectiveness | |||||||||||||||||||||
Derivative relationship | Income Statement Line Item | 2015 | 2014 | Income Statement Line Item | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Interest rate contracts | Other expenses | $ | 63 | $ | -51 | Other expenses | $ | -57 | $ | 51 | $ | 6 | $ | ― | |||||||||
Total return contract | Other non-interest revenues | ― | 13 | Other non-interest revenues | ― | -13 | ― | ― | |||||||||||||||
The Company also recognized a net reduction in interest expense on long-term debt of $70 million and $69 million for the three months ended March 31, 2015 and 2014, respectively, primarily related to the net settlements (interest accruals) on the Company’s interest rate derivatives designated as fair value hedges. | |||||||||||||||||||||||
Net Investment Hedges | |||||||||||||||||||||||
The effective portion of the gain or (loss) on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment was $195 million and $(17) million for the three months ended March 31, 2015 and 2014, respectively, with any ineffective portion recognized in Other expenses during the period of change. During the three months ended March 31, 2015 and 2014, the Company reclassified nil and $17 million, respectively, from AOCI to earnings as a component of Other expenses; no ineffectiveness was recognized in either of these two periods. | |||||||||||||||||||||||
The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s derivatives not designated as hedges for the three months ended March 31: | |||||||||||||||||||||||
Pretax gains (losses) | |||||||||||||||||||||||
Amount | |||||||||||||||||||||||
Description (Millions) | Income Statement Line Item | 2015 | 2014 | ||||||||||||||||||||
Foreign exchange contracts(a) | Other expenses | -45 | 134 | ||||||||||||||||||||
Total | $ | -45 | $ | 134 | |||||||||||||||||||
Foreign exchange contracts include forwards and embedded foreign currency derivatives. Gains (losses) on these embedded derivatives are included in Other expenses. | |||||||||||||||||||||||
Fair_Values
Fair Values | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Fair Value (Disclosures) [Abstract] | |||||||||||||||||||||||||||
Fair Values | 10. Fair Values | ||||||||||||||||||||||||||
Financial Assets and Financial Liabilities Carried at Fair Value | |||||||||||||||||||||||||||
The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy, as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
(Millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Investment securities:(a) | |||||||||||||||||||||||||||
Equity securities | $ | 1 | $ | 1 | $ | ― | $ | ― | $ | 1 | $ | 1 | $ | ― | $ | ― | |||||||||||
Debt securities and other | 4,416 | 352 | 4,064 | ― | 4,430 | 350 | 4,080 | ― | |||||||||||||||||||
Derivatives(a) | 932 | ― | 932 | ― | 991 | ― | 991 | ― | |||||||||||||||||||
Total assets | 5,349 | 353 | 4,996 | ― | 5,422 | 351 | 5,071 | ― | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Derivatives(a) | 263 | ― | 263 | ― | 164 | ― | 164 | ― | |||||||||||||||||||
Total liabilities | $ | 263 | $ | ― | $ | 263 | $ | ― | $ | 164 | $ | ― | $ | 164 | $ | ― | |||||||||||
Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of derivative assets and liabilities, on a further disaggregated basis. | |||||||||||||||||||||||||||
The following table summarizes the estimated fair values of the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of March 31, 2015 and December 31, 2014. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of March 31, 2015 and December 31, 2014, and require management judgment. These figures may not be indicative of future fair values, nor can the fair value of the Company be reliably estimated by aggregating the amounts presented. | |||||||||||||||||||||||||||
Carrying | Corresponding Fair Value Amount | ||||||||||||||||||||||||||
2015 (Billions) | Value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||
Financial assets for which carrying values | |||||||||||||||||||||||||||
equal or approximate fair value | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24 | $ | 24 | $ | 23 | $ | 1 | (a) | $ | ― | ||||||||||||||||
Other financial assets(b) | 46 | 46 | ― | 46 | ― | ||||||||||||||||||||||
Financial assets carried at other than fair value | |||||||||||||||||||||||||||
Loans, net | 67 | 67 | (c) | ― | ― | 67 | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||
Financial liabilities for which carrying values | |||||||||||||||||||||||||||
equal or approximate fair value | 59 | 59 | ― | 59 | ― | ||||||||||||||||||||||
Financial liabilities carried at other than | |||||||||||||||||||||||||||
fair value | |||||||||||||||||||||||||||
Certificates of deposit(d) | 8 | 8 | ― | 8 | ― | ||||||||||||||||||||||
Long-term debt | $ | 55 | $ | 57 | (c) | $ | ― | $ | 57 | $ | ― | ||||||||||||||||
Carrying | Corresponding Fair Value Amount | ||||||||||||||||||||||||||
2014 (Billions) | Value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||
Financial assets for which carrying values | |||||||||||||||||||||||||||
equal or approximate fair value | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 22 | $ | 22 | $ | 21 | $ | 1 | (a) | $ | ― | ||||||||||||||||
Other financial assets(b) | 48 | 48 | ― | 48 | ― | ||||||||||||||||||||||
Financial assets carried at other than fair value | |||||||||||||||||||||||||||
Loans, net | 70 | 71 | (c) | ― | ― | 71 | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||
Financial liabilities for which carrying values | |||||||||||||||||||||||||||
equal or approximate fair value | 61 | 61 | ― | 61 | ― | ||||||||||||||||||||||
Financial liabilities carried at other than | |||||||||||||||||||||||||||
fair value | |||||||||||||||||||||||||||
Certificates of deposit(d) | 8 | 8 | ― | 8 | ― | ||||||||||||||||||||||
Long-term debt | $ | 58 | $ | 60 | (c) | $ | ― | $ | 60 | $ | ― | ||||||||||||||||
Reflects time deposits. | |||||||||||||||||||||||||||
Includes accounts receivable (including fair values of Card Member receivables of $6.0 billion and $7.0 billion held by consolidated VIEs as of March 31, 2015 and December 31, 2014, respectively), restricted cash and other miscellaneous assets. | |||||||||||||||||||||||||||
Includes fair values of loans of $27.5 billion and $29.9 billion, and long-term debt of $16.5 billion and $19.5 billion held by consolidated VIEs as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||
Presented as a component of customer deposits on the Consolidated Balance Sheets. | |||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | |||||||||||||||||||||||||||
The Company has 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 determined to be impaired. During the three months ended March 31, 2015 and during the year ended December 31, 2014, the Company did not have any material assets that were measured at fair value due to impairment. |
Guarantees
Guarantees | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Guarantees [Abstract] | |||||||||||||
Guarantees | 11. Guarantees | ||||||||||||
The Company provides Card Member protection plans that cover losses associated with purchased products, as well as certain other guarantees and indemnifications in the ordinary course of business. | |||||||||||||
In relation to its maximum potential undiscounted future payments as shown in the table that follows, to date the Company has not experienced any significant losses related to guarantees or indemnifications. The Company’s initial recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated. | |||||||||||||
The following table provides information related to such guarantees and indemnifications as of March 31, 2015 and December 31, 2014: | |||||||||||||
Maximum potential | |||||||||||||
undiscounted future | |||||||||||||
payments(a) | Related liability(b) | ||||||||||||
(Billions) | (Millions) | ||||||||||||
Type of Guarantee | 2015 | 2014 | 2015 | 2014 | |||||||||
Return and Merchant Protection | $ | 38 | $ | 37 | $ | 45 | $ | 44 | |||||
Other(c) | 8 | 8 | 57 | 67 | |||||||||
Total | $ | 46 | $ | 45 | $ | 102 | $ | 111 | |||||
Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed parties. The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of maximum exposure based on all eligible claims in relation to annual billed business volumes. | |||||||||||||
Included in Other liabilities on the Company’s Consolidated Balance Sheets. | |||||||||||||
Primarily includes guarantees related to the Company’s purchase protection, business dispositions and real estate. | |||||||||||||
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive (Loss) Income | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||
Changes In Accumulated Other Comprehensive (Loss) Income | 12. Changes In Accumulated Other Comprehensive Loss | ||||||||||||
Accumulated Other Comprehensive Loss 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 months ended March 31, 2015 and 2014 were as follows: | |||||||||||||
2015 (Millions), net of tax | Net Unrealized Gains (Losses) on Investment Securities | Foreign Currency Translation Adjustments | Net Unrealized Pension and Other Postretirement Gains (Losses) | Accumulated Other Comprehensive Loss | |||||||||
Balances as of December 31, 2014 | $ | 96 | $ | -1,499 | $ | -516 | $ | -1,919 | |||||
Net translation loss of investments in foreign operations | -450 | -450 | |||||||||||
Net gains related to hedges of investments in foreign operations | 195 | 195 | |||||||||||
Pension and other postretirement benefit gains | 23 | 23 | |||||||||||
Net change in accumulated other comprehensive (loss) income | ― | -255 | 23 | -232 | |||||||||
Balances as of March 31, 2015 | $ | 96 | $ | -1,754 | $ | -493 | $ | -2,151 | |||||
2014 (Millions), net of tax | Net Unrealized Gains (Losses) on Investment Securities | Foreign Currency Translation Adjustments | Net Unrealized Pension and Other Postretirement Gains (Losses) | Accumulated Other Comprehensive Loss | |||||||||
Balances as of December 31, 2013 | $ | 63 | $ | -1,090 | $ | -399 | $ | -1,426 | |||||
Net unrealized gains | 68 | 68 | |||||||||||
(Decrease) increase due to amounts reclassified into earnings | -29 | 1 | -28 | ||||||||||
Net translation loss of investments in foreign operations | -18 | -18 | |||||||||||
Net losses related to hedges of investments in foreign operations | -17 | -17 | |||||||||||
Pension and other postretirement benefit gains | 27 | 27 | |||||||||||
Net change in accumulated other comprehensive income (loss) | 39 | -34 | 27 | 32 | |||||||||
Balances as of March 31, 2014 | $ | 102 | $ | -1,124 | $ | -372 | $ | -1,394 | |||||
The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the three months ended March 31, 2015 and 2014: | |||||||||||||
Gains (losses) recognized in earnings | |||||||||||||
Income Statement | Amount | ||||||||||||
Description (Millions) | Line Item | 2015 | 2014 | ||||||||||
Available-for-sale securities | |||||||||||||
Net gain in AOCI reclassifications for previously unrealized net gains on | |||||||||||||
investment securities | Other non-interest revenues | $ | ― | $ | 45 | ||||||||
Related income tax expense | Income tax provision | ― | -16 | ||||||||||
Reclassification to net income related to available-for sale securities | ― | 29 | |||||||||||
Foreign currency translation adjustments | |||||||||||||
Reclassification of realized losses on translation adjustments and related hedges | Other expenses | ― | -2 | ||||||||||
Related income tax benefit | Income tax provision | ― | 1 | ||||||||||
Reclassification of foreign currency translation adjustments | ― | -1 | |||||||||||
Total | $ | ― | $ | 28 | |||||||||
NonInterest_Revenue_and_Expens
Non-Interest Revenue and Expense Detail | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Income And Other Expense Disclosure [Abstract] | ||||||||
Non-Interest Revenue and Expense Detail | 13. Non-Interest Revenue and Expense Detail | |||||||
The following is a detail of Other commissions and fees for the three months ended March 31: | ||||||||
(Millions) | 2015 | 2014 | ||||||
Foreign currency conversion fee revenue | $ | 211 | $ | 213 | ||||
Delinquency fees | 195 | 181 | ||||||
Loyalty Partner-related fees | 91 | 91 | ||||||
Service fees | 87 | 90 | ||||||
Other(a) | 35 | 43 | ||||||
Total Other commissions and fees | $ | 619 | $ | 618 | ||||
Other primarily includes revenues from fees related to Membership Rewards programs. | ||||||||
The following is a detail of Other revenues for the three months ended March 31: | ||||||||
(Millions) | 2015 | 2014 | ||||||
Global Network Services partner revenues | $ | 164 | $ | 158 | ||||
Net realized gains on investment securities | - | 39 | ||||||
Other(a) | 304 | 304 | ||||||
Total Other revenues | $ | 468 | $ | 501 | ||||
Other includes revenues arising from net revenue earned on cross-border Card Member spending, merchant-related fees, insurance premiums earned from Card Member travel and other insurance programs, Travelers Cheques-related revenues, revenues related to the GBT JV transition services agreement, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees. | ||||||||
The following is a detail of Other, net expenses for the three months ended March 31: | ||||||||
(Millions) | 2015 | 2014 | ||||||
Professional services | $ | 624 | $ | 692 | ||||
Occupancy and equipment | 434 | 462 | ||||||
Card and merchant-related fraud losses (a) | 100 | 84 | ||||||
Communications | 88 | 93 | ||||||
Other(b) | 153 | 218 | ||||||
Total Other, net | $ | 1,399 | $ | 1,549 | ||||
Beginning January 1, 2015, merchant-related fraud losses are reported within Other, net expenses. | ||||||||
Other expense includes general operating expenses, gains (losses) on sale of assets or businesses not classified as discontinued operations, litigation, certain internal and regulatory review-related reimbursements and insurance costs or settlements, investment impairments certain Loyalty Partner-related expenses and foreign currency-related gains and losses, (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in the three months ended March 31, 2015). | ||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes |
The effective tax rate was 34.2 percent and 35.1 percent for the three months ended March 31, 2015 and 2014, respectively. The tax rates in both periods primarily reflected the level of pretax income in relation to recurring permanent tax benefits and the geographic mix of business. Additionally, the effective tax rate in both periods reflected the resolution of certain prior years’ tax items. | |
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. The IRS has completed its field examination of the Company’s federal tax returns for years through 2007; however, refund claims for certain years continue to be reviewed by the IRS. In addition, the Company is currently under examination by the IRS for the years 2008 through 2011. | |
The Company believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $430 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 $430 million of unrecognized tax benefits, approximately $317 million relates to amounts that if recognized would be recorded to shareholders’ equity and would not impact the Company’s results of operations or its effective tax rate. | |
Earnings_Per_Common_Share_EPS
Earnings Per Common Share (EPS) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Common Share (EPS) | 15. Earnings Per Common Share (EPS); Preferred Shares | ||||||||||
EPS | |||||||||||
The computations of basic and diluted EPS for the three months ended March 31 were as follows: | |||||||||||
(Millions, except per share amounts) | 2015 | 2014 | |||||||||
Numerator: | |||||||||||
Basic and diluted: | |||||||||||
Net income | $ | 1,525 | $ | 1,432 | |||||||
Earnings allocated to participating share awards(a) | -11 | -12 | |||||||||
Net income attributable to common shareholders | $ | 1,514 | $ | 1,420 | |||||||
Denominator:(a) | |||||||||||
Basic: Weighted-average common stock | $ | 1,019 | 1,060 | ||||||||
Add: Weighted-average stock options (b) | 4 | 7 | |||||||||
Diluted | $ | 1,023 | 1,067 | ||||||||
Basic EPS | $ | 1.49 | $ | 1.34 | |||||||
Diluted EPS | $ | 1.48 | $ | 1.33 | |||||||
The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator | |||||||||||
The dilutive effect of unexercised stock options excludes 0.5 million and 0.2 million of options from the computation of EPS for the three months ended March 31, 2015 and 2014, respectively, because inclusion of the options would have been anti-dilutive. | |||||||||||
For the three months ended March 31, 2015 and 2014, the Company met specified performance measures related to the $750 million of Subordinated Debentures issued in 2006, and maturing in 2036. If the performance measures were not achieved in any given quarter, the Company would be required to issue common shares and apply the proceeds to make interest payments. | |||||||||||
Preferred Shares | |||||||||||
The Board of Directors is authorized to permit the Company to issue up to 20 million Preferred Shares at a par value of $1.662/3 without further shareholder approval. The Company has the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of March 31, 2015: | |||||||||||
Series B | Series C | ||||||||||
Issuance date | 10-Nov-14 | 2-Mar-15 | |||||||||
Securities issued | 750 Preferred Shares; represented by 750,000 depositary shares | 850 Preferred Shares; represented by 850,000 depositary shares | |||||||||
Aggregate liquidation preference | $750 million | $850 million | |||||||||
Fixed dividend rate per annum | 5.20% | 4.90% | |||||||||
Semi-annual fixed dividend payment dates | Beginning May 15, 2015 | Beginning September 15, 2015 | |||||||||
Floating dividend rate per annum | 3 month LIBOR+ 3.428% | 3 month LIBOR+ 3.285% | |||||||||
Quarterly floating dividend payment dates | Beginning February 15, 2020 | Beginning June 15, 2020 | |||||||||
Fixed to floating rate conversion date(a) | 15-Nov-19 | 15-Mar-20 | |||||||||
The date on which dividends convert from a fixed rate calculation to a floating rate calculation. | |||||||||||
The Company may redeem these Preferred Shares at $1 million per Preferred Share (equivalent to $1,000 per depositary share) plus any declared but unpaid dividends in whole or in part, from time to time, on any dividend payment date on or after the respective fixed to floating rate conversion date, or in whole, but not in part, within 90 days of certain bank regulatory changes. | |||||||||||
Reportable_Operating_Segment
Reportable Operating Segment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Reportable Operating Segments | 16. Reportable Operating Segments | |||||||
The Company is a leading global payments and travel company that is principally engaged in businesses comprising four reportable operating segments: USCS, ICS, GCS and Global Network & Merchant Services (GNMS). Corporate functions and certain other businesses, including the Company’s Enterprise Growth Group, as well as other Company operations are included in Corporate & Other. | ||||||||
The following table presents certain selected financial information for the three months ended March 31: | ||||||||
(Millions) | 2015 | 2014 | ||||||
Non-interest revenues: | ||||||||
USCS | $ | 3,148 | $ | 2,991 | ||||
ICS | 1,061 | 1,157 | ||||||
GCS | 871 | 1,249 | ||||||
GNMS | 1,270 | 1,293 | ||||||
Corporate & Other, including adjustments and eliminations(a) | 153 | 146 | ||||||
Total | $ | 6,503 | $ | 6,836 | ||||
Interest income: | ||||||||
USCS | $ | 1,529 | $ | 1,423 | ||||
ICS | 244 | 277 | ||||||
GCS | 4 | 4 | ||||||
GNMS | 20 | 10 | ||||||
Corporate & Other, including adjustments and eliminations(a) | 60 | 62 | ||||||
Total | $ | 1,857 | $ | 1,776 | ||||
Interest expense: | ||||||||
USCS | $ | 152 | $ | 150 | ||||
ICS | 64 | 82 | ||||||
GCS | 48 | 59 | ||||||
GNMS | -54 | -62 | ||||||
Corporate & Other, including adjustments and eliminations(a) | 200 | 210 | ||||||
Total | $ | 410 | $ | 439 | ||||
Total revenues net of interest expense: | ||||||||
USCS | $ | 4,525 | $ | 4,264 | ||||
ICS | 1,241 | 1,352 | ||||||
GCS | 827 | 1,194 | ||||||
GNMS | 1,344 | 1,365 | ||||||
Corporate & Other, including adjustments and eliminations(a) | 13 | -2 | ||||||
Total | $ | 7,950 | $ | 8,173 | ||||
Net income: | ||||||||
USCS | $ | 934 | $ | 876 | ||||
ICS | 134 | 159 | ||||||
GCS | 180 | 184 | ||||||
GNMS | 444 | 443 | ||||||
Corporate & Other, including adjustments and eliminations (loss)(a) | -167 | -230 | ||||||
Total | $ | 1,525 | $ | 1,432 | ||||
Corporate & Other includes adjustments and eliminations for intersegment activity. | ||||||||
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Policy (Text Block) [Abstract] | |
Card Member and Other Receivables and Loans | The Company’s charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively. |
Impaired Card Member 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 the Company will be unable to collect all amounts due according to the original contractual terms of the Card Member agreement. In certain cases these Card Member loans and receivables are included in one of the Company’s various modification programs. Beginning January 1, 2015, on a prospective basis the Company will continue to classify Card Member accounts that have exited a modification program as a Troubled Debt Restructuring (TDR), with such accounts identified as “Out of Program TDRs.” | |
Reserves for losses | Reserves for losses relating to Card Member loans and receivables represent management’s best estimate of the probable inherent losses in the Company’s outstanding portfolio of loans and receivables, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. |
Investments | Investment securities principally include debt securities the Company classifies as available-for-sale and carries at fair value on the Consolidated Balance Sheets, with unrealized gains (losses) recorded in Accumulated Other Comprehensive Income (AOCI), net of income taxes. Realized gains and losses are recognized on a trade-date basis in results of operations upon disposition of the securities using the specific identification method. |
Overall, for the investment securities in gross unrealized loss positions (i) the Company does not intend to sell the investment securities, (ii) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and (iii) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment during the periods presented. | |
Asset Securitizations | The Company periodically securitizes Card Member receivables and loans arising from its card business through the transfer of those assets to securitization trusts. The trusts then issue securities to third-party investors, collateralized by the transferred assets. |
Contingencies | The Company has recorded liabilities for certain of its outstanding legal proceedings and governmental examinations. A liability is accrued 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 accrued liability. The Company evaluates, on a quarterly basis, developments in legal proceedings and governmental examinations that could cause an increase or decrease in the amount of the liability that has been previously accrued or a revision to the disclosed estimated range of possible losses, as applicable. |
Derivatives | The Company uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rate, foreign exchange rates, and equity index or price, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of the Company’s market risk management. The Company does not engage in derivatives for trading purposes. |
Accounts_Receivable_and_Loans_
Accounts Receivable and Loans (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Accounts Receivable and Loans (Tables) [Abstract] | ||||||||||||||||||||||
Card Member receivables segment detail | Accounts receivable by segment as of March 31, 2015 and December 31, 2014 consisted of: | |||||||||||||||||||||
(Millions) | 2015 | 2014 | ||||||||||||||||||||
U.S. Card Services (a) | $ | 21,501 | $ | 22,468 | ||||||||||||||||||
International Card Services | 6,381 | 7,653 | ||||||||||||||||||||
Global Commercial Services (b) | 15,697 | 14,583 | ||||||||||||||||||||
Global Network & Merchant Services (c) | 124 | 147 | ||||||||||||||||||||
Card Member receivables (d) | 43,703 | 44,851 | ||||||||||||||||||||
Less: Reserve for losses | 429 | 465 | ||||||||||||||||||||
Card Member receivables, net | $ | 43,274 | $ | 44,386 | ||||||||||||||||||
Other receivables, net (e) | $ | 2,354 | $ | 2,614 | ||||||||||||||||||
Includes $6.1 billion and $7.0 billion of gross Card Member receivables available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Includes $638 million and $636 million due from airlines, of which Delta Air Lines comprises $577 million and $606 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Includes receivables primarily related to the Company’s International Currency Card portfolios. | ||||||||||||||||||||||
Includes approximately $12.0 billion and $13.3 billion of Card Member receivables outside the U.S. as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Other receivables primarily represent amounts related to (i) certain merchants for billed discount revenue and (ii) Global Network Services (GNS) partner banks for items such as royalty and franchise fees. Other receivables are presented net of reserves for losses of $56 million and $61 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Card Member loans segment detail | Loans by segment as of March 31, 2015 and December 31, 2014 consisted of: | |||||||||||||||||||||
(Millions) | 2015 | 2014 | ||||||||||||||||||||
U.S. Card Services(a) | $ | 59,929 | $ | 62,592 | ||||||||||||||||||
International Card Services | 6,848 | 7,744 | ||||||||||||||||||||
Global Commercial Services | 58 | 49 | ||||||||||||||||||||
Card Member loans | 66,835 | 70,385 | ||||||||||||||||||||
Less: Reserve for losses | 1,130 | 1,201 | ||||||||||||||||||||
Card Member loans, net | $ | 65,705 | $ | 69,184 | ||||||||||||||||||
Other loans, net(b) | $ | 951 | $ | 920 | ||||||||||||||||||
Includes approximately $27.6 billion and $30.1 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Other loans primarily represent loans to merchants and a store card loan portfolio. Other loans are presented net of reserves for losses of $13 million and $12 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||
30-59 | 60-89 | 90+ | ||||||||||||||||||||
Days | Days | Days | ||||||||||||||||||||
Past | Past | Past | ||||||||||||||||||||
2015 (Millions) | Current | Due | Due | Due | Total | |||||||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 59,356 | $ | 171 | $ | 126 | $ | 276 | $ | 59,929 | ||||||||||||
International Card Services | 6,728 | 40 | 26 | 54 | 6,848 | |||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | $ | 21,144 | $ | 124 | $ | 87 | $ | 146 | $ | 21,501 | ||||||||||||
International Card Services | 6,282 | 30 | 22 | 47 | 6,381 | |||||||||||||||||
Global Commercial Services(a) | (b) | (b) | (b) | 110 | 15,697 | |||||||||||||||||
30-59 | 60-89 | 90+ | ||||||||||||||||||||
Days | Days | Days | ||||||||||||||||||||
Past | Past | Past | ||||||||||||||||||||
2014 (Millions) | Current | Due | Due | Due | Total | |||||||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 61,995 | $ | 179 | $ | 128 | $ | 290 | $ | 62,592 | ||||||||||||
International Card Services | 7,621 | 39 | 27 | 57 | 7,744 | |||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | $ | 22,096 | $ | 129 | $ | 72 | $ | 171 | $ | 22,468 | ||||||||||||
International Card Services | 7,557 | 29 | 20 | 47 | 7,653 | |||||||||||||||||
Global Commercial Services(a) | (b) | (b) | (b) | 120 | 14,583 | |||||||||||||||||
For Card Member receivables in GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. | ||||||||||||||||||||||
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 three months ended March 31: | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Net Write-Off Rate | Net Write-Off Rate | |||||||||||||||||||||
30+ Days | 30+ Days | |||||||||||||||||||||
Principal, | Past Due | Principal, | Past Due | |||||||||||||||||||
Principal | Interest, & | as a % of | Principal | Interest, & | as a % of | |||||||||||||||||
Only | (a) | Fees | (a) | Total | Only | (a) | Fees | (a) | Total | |||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | 1.5 | % | 1.7 | % | 1 | % | 1.7 | % | 1.9 | % | 1.1 | % | ||||||||||
International Card Services | 2 | % | 2.5 | % | 1.8 | % | 2.2 | % | 2.7 | % | 1.7 | % | ||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | 2.2 | % | 2.4 | % | 1.7 | % | 1.8 | % | 2 | % | 1.8 | % | ||||||||||
International Card Services | 1.9 | % | 2 | % | 1.6 | % | 1.9 | % | 2 | % | 1.4 | % | ||||||||||
2015 | 2014 | |||||||||||||||||||||
Net Loss | Net Loss | |||||||||||||||||||||
Ratio as | 90 Days | Ratio as | 90 Days | |||||||||||||||||||
a % of | Past Billing | a % of | Past Billing | |||||||||||||||||||
Charge | as a % of | Charge | as a % of | |||||||||||||||||||
Volume | Receivables | Volume | Receivables | |||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
Global Commercial Services | 0.1 | % | 0.7 | % | 0.09 | % | 0.7 | % | ||||||||||||||
The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. The three months ended March 31, 2015, reflects a change in the timing of charge-offs for Card Member loans and receivables in certain modification programs from 180 days past due to 120 days past due. | ||||||||||||||||||||||
Impaired Card Member loans and receivables | The following table provides additional information with respect to the Company’s impaired Card Member loans (which are not significant for GCS) and impaired Card Member receivables (which are not significant for International Card Services (ICS) and GCS) as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||
Over 90 days | Accounts Classified as a TDR(c)(d) | |||||||||||||||||||||
Past Due & | Total | Unpaid | ||||||||||||||||||||
Accruing | Non- | Out of | Impaired | Principal | Allowance | |||||||||||||||||
2015 (Millions) | Interest | (a) | Accruals | (b) | In Program | Program | Balance | Balance | for TDRs | |||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 171 | $ | 220 | $ | 261 | $ | 44 | $ | 696 | $ | 650 | $ | 65 | ||||||||
International Card Services | 54 | ― | ― | ― | 54 | 54 | ― | |||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | ― | ― | 27 | 1 | 28 | 26 | 17 | |||||||||||||||
Total | $ | 225 | $ | 220 | $ | 288 | $ | 45 | $ | 778 | $ | 730 | $ | 82 | ||||||||
As of December 31, 2014 | ||||||||||||||||||||||
Over 90 days | ||||||||||||||||||||||
Past Due & | Total | Unpaid | ||||||||||||||||||||
Accruing | Non- | In Program | Impaired | Principal | Allowance | |||||||||||||||||
2014 (Millions) | Interest | (a) | Accruals | (b) | TDRs(c) | Balance | Balance | for TDRs | ||||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 161 | $ | 241 | $ | 286 | $ | 688 | $ | 646 | $ | 67 | ||||||||||
International Card Services | 57 | ― | ― | 57 | 56 | ― | ||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | ― | ― | 48 | 48 | 48 | 35 | ||||||||||||||||
Total | $ | 218 | $ | 241 | $ | 334 | $ | 793 | $ | 750 | $ | 102 | ||||||||||
The Company’s policy is generally to accrue interest through the date of write-off (i.e., 180 days past due). The Company establishes reserves for interest that it believes will not be collected. Amounts presented exclude loans classified as a TDR. | ||||||||||||||||||||||
Non-accrual loans not in modification programs include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest. | ||||||||||||||||||||||
Accounts classified as a TDR includes $31 million and $34 million that are non-accrual and $18 million and $26 million that are past due 90 days and still accruing interest as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||
In Program TDRs include Card Member accounts that are currently enrolled within a modification program. Out of Program TDRs, include $34 million of Card Member accounts that have successfully completed a modification program and $11 million of Card Member accounts that were not in compliance with the terms of the modification programs. | ||||||||||||||||||||||
Interest income recognized and average balance of impaired Card Member loans and receivables | The following table provides information with respect to the Company’s average balances of, and interest income recognized from, impaired Card Member loans (which is not significant for GCS) and average balance of impaired Card Member receivables (which is not significant for ICS and GCS) for the three months ended March 31: | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Average | Average | |||||||||||||||||||||
Balance of | Interest | Balance of | Interest | |||||||||||||||||||
Impaired | Income | Impaired | Income | |||||||||||||||||||
(Millions) | Loans | Recognized | Loans | Recognized | ||||||||||||||||||
Card Member Loans: | ||||||||||||||||||||||
U.S. Card Services | $ | 692 | $ | 13 | $ | 793 | $ | 16 | ||||||||||||||
International Card Services | 56 | 4 | 63 | 4 | ||||||||||||||||||
Card Member Receivables: | ||||||||||||||||||||||
U.S. Card Services | 38 | ― | 50 | ― | ||||||||||||||||||
Total | $ | 786 | $ | 17 | $ | 906 | $ | 20 | ||||||||||||||
Troubled debt restructurings | The following table provides additional information with respect to the U.S. Card Services (USCS) Card Member loans and receivables modified as TDRs for the three months ended March 31, 2015 and 2014. The ICS and GCS Card Member loans and receivables modifications were not significant. | |||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Number of | Outstanding | Average Interest | Average Payment | |||||||||||||||||||
Accounts | Balances | (a)(b) | Rate Reduction | Term Extensions | ||||||||||||||||||
(in thousands) | ($ in millions) | (% points) | (# of months) | |||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||
Card Member Loans | 11 | $ | 80 | 12 | (c) | |||||||||||||||||
Card Member Receivables | 3 | 40 | (d) | 12 | ||||||||||||||||||
Total | 14 | $ | 120 | |||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Number of | Outstanding | Average Interest | Average Payment | |||||||||||||||||||
Accounts | Balances | (a)(b) | Rate Reduction | Term Extensions | ||||||||||||||||||
(in thousands) | ($ in millions) | (% points) | (# of months) | |||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||
Card Member Loans | 12 | $ | 96 | 14 | (c) | |||||||||||||||||
Card Member Receivables | 4 | 47 | (d) | 12 | ||||||||||||||||||
Total | 16 | $ | 143 | |||||||||||||||||||
Represents the outstanding balance immediately prior to modification. Modifications did not reduce the aggregate principal balance. | ||||||||||||||||||||||
The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. | ||||||||||||||||||||||
For Card Member loans, there have been no payment term extensions. | ||||||||||||||||||||||
The Company does not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. | ||||||||||||||||||||||
Troubled debt restructurings that subsequently defaulted | The following table provides information for the three months ended March 31, 2015 and 2014, with respect to the USCS Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A Card Member is considered in default of a modification program after one and up to two consecutive missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. The defaulted ICS Card Member loan and receivable modifications were not significant. | |||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Aggregated | Aggregated | |||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||
Number of | Balances | Number of | Balances | |||||||||||||||||||
(Accounts in thousands, Dollars in millions) | Accounts | Upon Default(a) | Accounts | Upon Default(a) | ||||||||||||||||||
Troubled Debt Restructurings That | ||||||||||||||||||||||
Subsequently Defaulted: | ||||||||||||||||||||||
Card Member Loans | 2 | $ | 10 | 2 | $ | 20 | ||||||||||||||||
Card Member Receivables | 1 | 1 | 1 | 7 | ||||||||||||||||||
Total | 3 | $ | 11 | 3 | $ | 27 | ||||||||||||||||
The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. | ||||||||||||||||||||||
Reserves_For_Losses_Tables
Reserves For Losses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Reserves For Losses Tables [Abstract] | |||||||||
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31: | ||||||||
(Millions) | 2015 | 2014 | |||||||
Balance, January 1 | $ | 465 | $ | 386 | |||||
Provisions(a) | 174 | 215 | |||||||
Net write-offs(b) | -199 | -170 | |||||||
Other(c) | -11 | -17 | |||||||
Balance, March 31 | $ | 429 | $ | 414 | |||||
Provisions for principal and fee reserve components. | |||||||||
Consists of principal and fee components, less recoveries of $99 million and $92 million, including net write-offs from TDRs of $31 million and $2 million, for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Beginning in the first quarter 2014, reserves for card-related fraud losses of $(7) million are included in Other liabilities. Also includes foreign currency translation adjustments of $(7) million and nil for the three months ended March 31, 2015 and 2014, respectively, and other items of $(4) million and $(10) million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of March 31, 2015 and December 31, 2014: | ||||||||
(Millions) | 2015 | 2014 | |||||||
Card Member receivables evaluated individually for impairment(a) | $ | 28 | $ | 48 | |||||
Related reserves (a) | $ | 17 | $ | 35 | |||||
Card Member receivables evaluated collectively for impairment | $ | 43,675 | $ | 44,803 | |||||
Related reserves (b) | $ | 412 | $ | 430 | |||||
Represents receivables modified as a TDR and related reserves. | |||||||||
The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. | |||||||||
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31: | ||||||||
(Millions) | 2015 | 2014 | |||||||
Balance, January 1 | $ | 1,201 | $ | 1,261 | |||||
Provisions(a) | 235 | 250 | |||||||
Net write-offs | |||||||||
Principal(b) | -259 | -280 | |||||||
Interest and fees(b) | -43 | -42 | |||||||
Other(c) | -4 | 2 | |||||||
Balance, March 31 | $ | 1,130 | $ | 1,191 | |||||
Provisions for principal, interest and fee reserve components. | |||||||||
Consists of principal write-offs, less recoveries of $103 million and $107 million, including net write-offs/(recoveries) from TDRs of $16 million and $(2) million, for the three months ended March 31, 2015 and 2014, respectively. Recoveries of interest and fees were de minimis. | |||||||||
Beginning in the first quarter 2014, reserves for card related fraud losses of $(6) million are included in Other liabilities. Also includes foreign currency translation adjustments of $(7) million and $(1) million for the three months ended March 31, 2015 and 2014, respectively, and other items of $3 million and $9 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Card Member loans and related reserves evaluated separately and collectively for impairment | The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of March 31, 2015 and December 31, 2014: | ||||||||
(Millions) | 2015 | 2014 | |||||||
Card Member loans evaluated individually for impairment(a) | $ | 305 | $ | 286 | |||||
Related reserves (a) | $ | 65 | $ | 67 | |||||
Card Member loans evaluated collectively for impairment(b) | $ | 66,530 | $ | 70,099 | |||||
Related reserves (b) | $ | 1,065 | $ | 1,134 | |||||
Represents loans modified as a TDR and related reserves. | |||||||||
Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans, and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. | |||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Investment Securities (Tables) [Abstract] | ||||||||||||||||||||||||||
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Gross | Gross | Estimated | Gross | Gross | Estimated | |||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Description of Securities (Millions) | Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||
State and municipal obligations | $ | 3,196 | $ | 126 | $ | -1 | $ | 3,321 | $ | 3,366 | $ | 129 | $ | -2 | $ | 3,493 | ||||||||||
U.S. Government agency | ||||||||||||||||||||||||||
obligations | 2 | ― | ― | 2 | 3 | ― | ― | 3 | ||||||||||||||||||
U.S. Government treasury | ||||||||||||||||||||||||||
obligations | 346 | 6 | ― | 352 | 346 | 4 | ― | 350 | ||||||||||||||||||
Corporate debt securities | 35 | 2 | ― | 37 | 37 | 3 | ― | 40 | ||||||||||||||||||
Mortgage-backed securities (a) | 120 | 6 | ― | 126 | 128 | 8 | ― | 136 | ||||||||||||||||||
Equity securities | ― | 1 | ― | 1 | ― | 1 | ― | 1 | ||||||||||||||||||
Foreign government bonds and | ||||||||||||||||||||||||||
obligations | 518 | 11 | ― | 529 | 350 | 9 | ― | 359 | ||||||||||||||||||
Other (b) | 50 | ― | -1 | 49 | 50 | ― | -1 | 49 | ||||||||||||||||||
Total | $ | 4,267 | $ | 152 | $ | -2 | $ | 4,417 | $ | 4,280 | $ | 154 | $ | -3 | $ | 4,431 | ||||||||||
Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. | ||||||||||||||||||||||||||
Other comprises investments in various mutual funds. | ||||||||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table provides information about the Company’s investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Less than 12 months | 12 months or more | |||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Description of Securities (Millions) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
State and municipal obligations | $ | ― | $ | ― | $ | 40 | $ | -1 | $ | ― | $ | ― | $ | 72 | $ | -2 | ||||||||||
Other | ― | ― | 33 | -1 | ― | ― | 33 | -1 | ||||||||||||||||||
Total | $ | ― | $ | ― | $ | 73 | $ | -2 | $ | ― | $ | ― | $ | 105 | $ | -3 | ||||||||||
Available for Sale Securities Ratio of Fair Value to Amortized Cost | The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
Ratio of Fair Value to | Gross | Gross | Gross | |||||||||||||||||||||||
Amortized Cost | Number of | Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | Estimated | Unrealized | |||||||||||||||||
(Dollars in millions) | Securities | Fair Value | Losses | Securities | Fair Value | Losses | Securities | Fair Value | Losses | |||||||||||||||||
2015:00:00 | ||||||||||||||||||||||||||
90%–100% | ― | $ | ― | $ | ― | 11 | $ | 73 | $ | -2 | 11 | $ | 73 | $ | -2 | |||||||||||
Total as of March 31, 2015 | ― | $ | ― | $ | ― | 11 | $ | 73 | $ | -2 | 11 | $ | 73 | $ | -2 | |||||||||||
2014:00:00 | ||||||||||||||||||||||||||
90%–100% | ― | $ | ― | $ | ― | 15 | $ | 105 | $ | -3 | 15 | $ | 105 | $ | -3 | |||||||||||
Total as of December 31, 2014 | ― | $ | ― | $ | ― | 15 | $ | 105 | $ | -3 | 15 | $ | 105 | $ | -3 | |||||||||||
Contractual maturities of investment securities | Contractual maturities of investment securities with stated maturities as of March 31, 2015 were as follows: | |||||||||||||||||||||||||
Estimated | ||||||||||||||||||||||||||
(Millions) | Cost | Fair Value | ||||||||||||||||||||||||
Due within 1 year | $ | 736 | $ | 737 | ||||||||||||||||||||||
Due after 1 year but within 5 years | 331 | 338 | ||||||||||||||||||||||||
Due after 5 years but within 10 years | 239 | 255 | ||||||||||||||||||||||||
Due after 10 years | 2,911 | 3,037 | ||||||||||||||||||||||||
Total | $ | 4,217 | $ | 4,367 | ||||||||||||||||||||||
Asset_Securitizations_Tables
Asset Securitizations (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Cash And Cash Equivalents [Abstract] | |||||||
Restricted cash held by trusts | The following table provides information on the restricted cash held by the American Express Issuance Trust II (the Charge Trust) and the American Express Credit Account Master Trust (the Lending Trust) as of March 31, 2015 and December 31, 2014, included in Other assets on the Company’s Consolidated Balance Sheets: | ||||||
(Millions) | 2015 | 2014 | |||||
Charge Trust | $ | 1 | $ | 2 | |||
Lending Trust | 53 | 62 | |||||
Total | $ | 54 | $ | 64 |
Customer_Deposits_Tables
Customer Deposits (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Customer Deposits (Tables) [Abstract] | ||||||||||
Deposits By Component Alternative | As of March 31, 2015 and December 31, 2014, customer deposits were categorized as interest bearing or non-interest bearing, as follows: | |||||||||
(Millions) | 2015 | 2014 | ||||||||
U.S.: | ||||||||||
Interest bearing | $ | 44,142 | $ | 43,279 | ||||||
Non-interest bearing (includes Card Member credit balances of: | ||||||||||
2015, $317 million; 2014, $372 million) | 356 | 418 | ||||||||
Non-U.S.: | ||||||||||
Interest bearing | 113 | 115 | ||||||||
Non-interest bearing (includes Card Member credit balances of: | ||||||||||
2015, $306 million; 2014, $347 million) | 317 | 359 | ||||||||
Total customer deposits | $ | 44,928 | $ | 44,171 | ||||||
Deposits By Type | Customer deposits by deposit type as of March 31, 2015 and December 31, 2014 were as follows: | |||||||||
(Millions) | 2015 | 2014 | ||||||||
U.S. retail deposits: | ||||||||||
Savings accounts – Direct | $ | 27,508 | $ | 26,159 | ||||||
Certificates of deposit: | ||||||||||
Direct | 317 | 333 | ||||||||
Third-party | 7,384 | 7,838 | ||||||||
Sweep accounts – Third-party | 8,933 | 8,949 | ||||||||
Other retail deposits: | ||||||||||
Non-U.S. deposits and U.S. non-interest bearing deposits | 163 | 173 | ||||||||
Card Member credit balances ― U.S. and non-U.S. | 623 | 719 | ||||||||
Total customer deposits | $ | 44,928 | $ | 44,171 | ||||||
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of March 31, 2015 were as follows: | |||||||||
(Millions) | U.S. | Non-U.S. | Total | |||||||
2015 | $ | 1,115 | $ | 21 | $ | 1,136 | ||||
2016 | 2,159 | 1 | 2,160 | |||||||
2017 | 1,493 | ― | 1,493 | |||||||
2018 | 1,535 | ― | 1,535 | |||||||
2019 | 1,327 | ― | 1,327 | |||||||
After 5 years | 72 | ― | 72 | |||||||
Total | $ | 7,701 | $ | 22 | $ | 7,723 | ||||
Time Deposits $250,000 Or More | As of March 31, 2015 and December 31, 2014, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: | |||||||||
(Millions) | 2015 | 2014 | ||||||||
U.S. | $ | 109 | $ | 111 | ||||||
Non-U.S. | 17 | 17 | ||||||||
Total | $ | 126 | $ | 128 |
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Derivatives and Hedging Activities (Tables) [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 March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||
Other Assets | Other Liabilities | ||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||
(Millions) | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Fair value hedges | $ | 372 | $ | 314 | $ | ― | $ | 4 | |||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||
Net investment hedges | 408 | 492 | 115 | 46 | |||||||||||||||||||
Total derivatives designated as hedging instruments | 780 | 806 | 115 | 50 | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts, including certain embedded derivatives(a) | 152 | 185 | 148 | 114 | |||||||||||||||||||
Total derivatives, gross | 932 | 991 | 263 | 164 | |||||||||||||||||||
Less: Cash collateral netting(b) | -233 | -158 | ― | -4 | |||||||||||||||||||
Derivative asset and derivative liability netting(c) | -173 | -122 | -173 | -122 | |||||||||||||||||||
Total derivatives, net(d) | $ | 526 | $ | 711 | $ | 90 | $ | 38 | |||||||||||||||
Includes foreign currency derivatives embedded in certain operating agreements. | |||||||||||||||||||||||
Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. Additionally, the Company received non-cash collateral from a counterparty in the form of security interests in U.S. Treasury securities with a fair value of $43 million and $91 million as of March 31, 2015 and December 31, 2014, respectively, none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $483 million and $620 million as of March 31, 2015 and December 31, 2014, respectively, but did not reduce the net exposure on the Company’s Consolidated Balance Sheets. Additionally, the Company posted $111 million and $114 million as of March 31, 2015 and December 31, 2014, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Company’s Consolidated Balance Sheets and are not netted against the derivative balances. | |||||||||||||||||||||||
Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. | |||||||||||||||||||||||
The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within Other assets and Other liabilities on the Company’s Consolidated Balance Sheets. | |||||||||||||||||||||||
Effect of fair value hedges on results of operations | The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s fair value hedges for the three months ended March 31: | ||||||||||||||||||||||
For the Three Months Ended March 31: (Millions) | |||||||||||||||||||||||
Gains (losses) recognized in income | |||||||||||||||||||||||
Derivative contract | Hedged item | Net hedge | |||||||||||||||||||||
Amount | Amount | ineffectiveness | |||||||||||||||||||||
Derivative relationship | Income Statement Line Item | 2015 | 2014 | Income Statement Line Item | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Interest rate contracts | Other expenses | $ | 63 | $ | -51 | Other expenses | $ | -57 | $ | 51 | $ | 6 | $ | ― | |||||||||
Total return contract | Other non-interest revenues | ― | 13 | Other non-interest revenues | ― | -13 | ― | ― | |||||||||||||||
Derivative instruments gain loss recognized in income | The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s derivatives not designated as hedges for the three months ended March 31: | ||||||||||||||||||||||
Pretax gains (losses) | |||||||||||||||||||||||
Amount | |||||||||||||||||||||||
Description (Millions) | Income Statement Line Item | 2015 | 2014 | ||||||||||||||||||||
Foreign exchange contracts(a) | Other expenses | -45 | 134 | ||||||||||||||||||||
Total | $ | -45 | $ | 134 | |||||||||||||||||||
Foreign exchange contracts include forwards and embedded foreign currency derivatives. Gains (losses) on these embedded derivatives are included in Other expenses. | |||||||||||||||||||||||
Fair_Values_Tables
Fair Values (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Fair Values (Tables) [Abstract] | |||||||||||||||||||||||||||
Fair value assets and liabilities measured on recurring basis | The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy, as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
(Millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Investment securities:(a) | |||||||||||||||||||||||||||
Equity securities | $ | 1 | $ | 1 | $ | ― | $ | ― | $ | 1 | $ | 1 | $ | ― | $ | ― | |||||||||||
Debt securities and other | 4,416 | 352 | 4,064 | ― | 4,430 | 350 | 4,080 | ― | |||||||||||||||||||
Derivatives(a) | 932 | ― | 932 | ― | 991 | ― | 991 | ― | |||||||||||||||||||
Total assets | 5,349 | 353 | 4,996 | ― | 5,422 | 351 | 5,071 | ― | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Derivatives(a) | 263 | ― | 263 | ― | 164 | ― | 164 | ― | |||||||||||||||||||
Total liabilities | $ | 263 | $ | ― | $ | 263 | $ | ― | $ | 164 | $ | ― | $ | 164 | $ | ― | |||||||||||
Refer to Note 5 for the fair values of investment securities and to Note 9 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 the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of March 31, 2015 and December 31, 2014. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of March 31, 2015 and December 31, 2014, and require management judgment. These figures may not be indicative of future fair values, nor can the fair value of the Company be reliably estimated by aggregating the amounts presented. | ||||||||||||||||||||||||||
Carrying | Corresponding Fair Value Amount | ||||||||||||||||||||||||||
2015 (Billions) | Value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||
Financial assets for which carrying values | |||||||||||||||||||||||||||
equal or approximate fair value | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 24 | $ | 24 | $ | 23 | $ | 1 | (a) | $ | ― | ||||||||||||||||
Other financial assets(b) | 46 | 46 | ― | 46 | ― | ||||||||||||||||||||||
Financial assets carried at other than fair value | |||||||||||||||||||||||||||
Loans, net | 67 | 67 | (c) | ― | ― | 67 | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||
Financial liabilities for which carrying values | |||||||||||||||||||||||||||
equal or approximate fair value | 59 | 59 | ― | 59 | ― | ||||||||||||||||||||||
Financial liabilities carried at other than | |||||||||||||||||||||||||||
fair value | |||||||||||||||||||||||||||
Certificates of deposit(d) | 8 | 8 | ― | 8 | ― | ||||||||||||||||||||||
Long-term debt | $ | 55 | $ | 57 | (c) | $ | ― | $ | 57 | $ | ― | ||||||||||||||||
Carrying | Corresponding Fair Value Amount | ||||||||||||||||||||||||||
2014 (Billions) | Value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||
Financial assets for which carrying values | |||||||||||||||||||||||||||
equal or approximate fair value | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 22 | $ | 22 | $ | 21 | $ | 1 | (a) | $ | ― | ||||||||||||||||
Other financial assets(b) | 48 | 48 | ― | 48 | ― | ||||||||||||||||||||||
Financial assets carried at other than fair value | |||||||||||||||||||||||||||
Loans, net | 70 | 71 | (c) | ― | ― | 71 | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||
Financial liabilities for which carrying values | |||||||||||||||||||||||||||
equal or approximate fair value | 61 | 61 | ― | 61 | ― | ||||||||||||||||||||||
Financial liabilities carried at other than | |||||||||||||||||||||||||||
fair value | |||||||||||||||||||||||||||
Certificates of deposit(d) | 8 | 8 | ― | 8 | ― | ||||||||||||||||||||||
Long-term debt | $ | 58 | $ | 60 | (c) | $ | ― | $ | 60 | $ | ― | ||||||||||||||||
Reflects time deposits. | |||||||||||||||||||||||||||
Includes accounts receivable (including fair values of Card Member receivables of $6.0 billion and $7.0 billion held by consolidated VIEs as of March 31, 2015 and December 31, 2014, respectively), restricted cash and other miscellaneous assets. | |||||||||||||||||||||||||||
Includes fair values of loans of $27.5 billion and $29.9 billion, and long-term debt of $16.5 billion and $19.5 billion held by consolidated VIEs as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||
Presented as a component of customer deposits on the Consolidated Balance Sheets. | |||||||||||||||||||||||||||
Guarantees_Tables
Guarantees (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Guarantees (Tables) [Abstract] | |||||||||||||
Information related to guarantees | The following table provides information related to such guarantees and indemnifications as of March 31, 2015 and December 31, 2014: | ||||||||||||
Maximum potential | |||||||||||||
undiscounted future | |||||||||||||
payments(a) | Related liability(b) | ||||||||||||
(Billions) | (Millions) | ||||||||||||
Type of Guarantee | 2015 | 2014 | 2015 | 2014 | |||||||||
Return and Merchant Protection | $ | 38 | $ | 37 | $ | 45 | $ | 44 | |||||
Other(c) | 8 | 8 | 57 | 67 | |||||||||
Total | $ | 46 | $ | 45 | $ | 102 | $ | 111 | |||||
Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed parties. The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of maximum exposure based on all eligible claims in relation to annual billed business volumes. | |||||||||||||
Included in Other liabilities on the Company’s Consolidated Balance Sheets. | |||||||||||||
Primarily includes guarantees related to the Company’s purchase protection, business dispositions and real estate. | |||||||||||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Components of Comprehensive Income, net of tax [Abstract] | |||||||||||||
Components of comprehensive income (loss), net of tax | Changes in each component for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||||
2015 (Millions), net of tax | Net Unrealized Gains (Losses) on Investment Securities | Foreign Currency Translation Adjustments | Net Unrealized Pension and Other Postretirement Gains (Losses) | Accumulated Other Comprehensive Loss | |||||||||
Balances as of December 31, 2014 | $ | 96 | $ | -1,499 | $ | -516 | $ | -1,919 | |||||
Net translation loss of investments in foreign operations | -450 | -450 | |||||||||||
Net gains related to hedges of investments in foreign operations | 195 | 195 | |||||||||||
Pension and other postretirement benefit gains | 23 | 23 | |||||||||||
Net change in accumulated other comprehensive (loss) income | ― | -255 | 23 | -232 | |||||||||
Balances as of March 31, 2015 | $ | 96 | $ | -1,754 | $ | -493 | $ | -2,151 | |||||
2014 (Millions), net of tax | Net Unrealized Gains (Losses) on Investment Securities | Foreign Currency Translation Adjustments | Net Unrealized Pension and Other Postretirement Gains (Losses) | Accumulated Other Comprehensive Loss | |||||||||
Balances as of December 31, 2013 | $ | 63 | $ | -1,090 | $ | -399 | $ | -1,426 | |||||
Net unrealized gains | 68 | 68 | |||||||||||
(Decrease) increase due to amounts reclassified into earnings | -29 | 1 | -28 | ||||||||||
Net translation loss of investments in foreign operations | -18 | -18 | |||||||||||
Net losses related to hedges of investments in foreign operations | -17 | -17 | |||||||||||
Pension and other postretirement benefit gains | 27 | 27 | |||||||||||
Net change in accumulated other comprehensive income (loss) | 39 | -34 | 27 | 32 | |||||||||
Balances as of March 31, 2014 | $ | 102 | $ | -1,124 | $ | -372 | $ | -1,394 | |||||
Reclassification out of accumulated other comprehensive (loss) income | The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the three months ended March 31, 2015 and 2014: | ||||||||||||
Gains (losses) recognized in earnings | |||||||||||||
Income Statement | Amount | ||||||||||||
Description (Millions) | Line Item | 2015 | 2014 | ||||||||||
Available-for-sale securities | |||||||||||||
Net gain in AOCI reclassifications for previously unrealized net gains on | |||||||||||||
investment securities | Other non-interest revenues | $ | ― | $ | 45 | ||||||||
Related income tax expense | Income tax provision | ― | -16 | ||||||||||
Reclassification to net income related to available-for sale securities | ― | 29 | |||||||||||
Foreign currency translation adjustments | |||||||||||||
Reclassification of realized losses on translation adjustments and related hedges | Other expenses | ― | -2 | ||||||||||
Related income tax benefit | Income tax provision | ― | 1 | ||||||||||
Reclassification of foreign currency translation adjustments | ― | -1 | |||||||||||
Total | $ | ― | $ | 28 | |||||||||
NonInterest_Revenue_and_Expens1
Non-Interest Revenue and Expense Detail (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Cost And Expense Disclosure Operating (Tables) [Abstract] | ||||||||
Details of other commissions and fees | The following is a detail of Other commissions and fees for the three months ended March 31: | |||||||
(Millions) | 2015 | 2014 | ||||||
Foreign currency conversion fee revenue | $ | 211 | $ | 213 | ||||
Delinquency fees | 195 | 181 | ||||||
Loyalty Partner-related fees | 91 | 91 | ||||||
Service fees | 87 | 90 | ||||||
Other(a) | 35 | 43 | ||||||
Total Other commissions and fees | $ | 619 | $ | 618 | ||||
Other primarily includes revenues from fees related to Membership Rewards programs. | ||||||||
Details of other revenues | The following is a detail of Other revenues for the three months ended March 31: | |||||||
(Millions) | 2015 | 2014 | ||||||
Global Network Services partner revenues | $ | 164 | $ | 158 | ||||
Net realized gains on investment securities | - | 39 | ||||||
Other(a) | 304 | 304 | ||||||
Total Other revenues | $ | 468 | $ | 501 | ||||
Other includes revenues arising from net revenue earned on cross-border Card Member spending, merchant-related fees, insurance premiums earned from Card Member travel and other insurance programs, Travelers Cheques-related revenues, revenues related to the GBT JV transition services agreement, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees. | ||||||||
Detail of other, net expense | The following is a detail of Other, net expenses for the three months ended March 31: | |||||||
(Millions) | 2015 | 2014 | ||||||
Professional services | $ | 624 | $ | 692 | ||||
Occupancy and equipment | 434 | 462 | ||||||
Card and merchant-related fraud losses (a) | 100 | 84 | ||||||
Communications | 88 | 93 | ||||||
Other(b) | 153 | 218 | ||||||
Total Other, net | $ | 1,399 | $ | 1,549 | ||||
Beginning January 1, 2015, merchant-related fraud losses are reported within Other, net expenses. | ||||||||
Other expense includes general operating expenses, gains (losses) on sale of assets or businesses not classified as discontinued operations, litigation, certain internal and regulatory review-related reimbursements and insurance costs or settlements, investment impairments certain Loyalty Partner-related expenses and foreign currency-related gains and losses, (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in the three months ended March 31, 2015). | ||||||||
Earnings_Per_Common_Share_EPS_
Earnings Per Common Share (EPS) (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the three months ended March 31 were as follows: | ||||||||||
(Millions, except per share amounts) | 2015 | 2014 | |||||||||
Numerator: | |||||||||||
Basic and diluted: | |||||||||||
Net income | $ | 1,525 | $ | 1,432 | |||||||
Earnings allocated to participating share awards(a) | -11 | -12 | |||||||||
Net income attributable to common shareholders | $ | 1,514 | $ | 1,420 | |||||||
Denominator:(a) | |||||||||||
Basic: Weighted-average common stock | $ | 1,019 | 1,060 | ||||||||
Add: Weighted-average stock options (b) | 4 | 7 | |||||||||
Diluted | $ | 1,023 | 1,067 | ||||||||
Basic EPS | $ | 1.49 | $ | 1.34 | |||||||
Diluted EPS | $ | 1.48 | $ | 1.33 | |||||||
The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator | |||||||||||
The dilutive effect of unexercised stock options excludes 0.5 million and 0.2 million of options from the computation of EPS for the three months ended March 31, 2015 and 2014, respectively, because inclusion of the options would have been anti-dilutive. | |||||||||||
Perpetual Fixed Floating Rate Noncumulative Preferred Shares | The Company has the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of March 31, 2015: | ||||||||||
Series B | Series C | ||||||||||
Issuance date | 10-Nov-14 | 2-Mar-15 | |||||||||
Securities issued | 750 Preferred Shares; represented by 750,000 depositary shares | 850 Preferred Shares; represented by 850,000 depositary shares | |||||||||
Aggregate liquidation preference | $750 million | $850 million | |||||||||
Fixed dividend rate per annum | 5.20% | 4.90% | |||||||||
Semi-annual fixed dividend payment dates | Beginning May 15, 2015 | Beginning September 15, 2015 | |||||||||
Floating dividend rate per annum | 3 month LIBOR+ 3.428% | 3 month LIBOR+ 3.285% | |||||||||
Quarterly floating dividend payment dates | Beginning February 15, 2020 | Beginning June 15, 2020 | |||||||||
Fixed to floating rate conversion date(a) | 15-Nov-19 | 15-Mar-20 | |||||||||
The date on which dividends convert from a fixed rate calculation to a floating rate calculation. | |||||||||||
Reportable_Operating_Segment_T
Reportable Operating Segment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||||
Operating segment information | The following table presents certain selected financial information for the three months ended March 31: | |||||||
(Millions) | 2015 | 2014 | ||||||
Non-interest revenues: | ||||||||
USCS | $ | 3,148 | $ | 2,991 | ||||
ICS | 1,061 | 1,157 | ||||||
GCS | 871 | 1,249 | ||||||
GNMS | 1,270 | 1,293 | ||||||
Corporate & Other, including adjustments and eliminations(a) | 153 | 146 | ||||||
Total | $ | 6,503 | $ | 6,836 | ||||
Interest income: | ||||||||
USCS | $ | 1,529 | $ | 1,423 | ||||
ICS | 244 | 277 | ||||||
GCS | 4 | 4 | ||||||
GNMS | 20 | 10 | ||||||
Corporate & Other, including adjustments and eliminations(a) | 60 | 62 | ||||||
Total | $ | 1,857 | $ | 1,776 | ||||
Interest expense: | ||||||||
USCS | $ | 152 | $ | 150 | ||||
ICS | 64 | 82 | ||||||
GCS | 48 | 59 | ||||||
GNMS | -54 | -62 | ||||||
Corporate & Other, including adjustments and eliminations(a) | 200 | 210 | ||||||
Total | $ | 410 | $ | 439 | ||||
Total revenues net of interest expense: | ||||||||
USCS | $ | 4,525 | $ | 4,264 | ||||
ICS | 1,241 | 1,352 | ||||||
GCS | 827 | 1,194 | ||||||
GNMS | 1,344 | 1,365 | ||||||
Corporate & Other, including adjustments and eliminations(a) | 13 | -2 | ||||||
Total | $ | 7,950 | $ | 8,173 | ||||
Net income: | ||||||||
USCS | $ | 934 | $ | 876 | ||||
ICS | 134 | 159 | ||||||
GCS | 180 | 184 | ||||||
GNMS | 444 | 443 | ||||||
Corporate & Other, including adjustments and eliminations (loss)(a) | -167 | -230 | ||||||
Total | $ | 1,525 | $ | 1,432 | ||||
Corporate & Other includes adjustments and eliminations for intersegment activity. | ||||||||
Basis_of_Presentation_Details_
Basis of Presentation (Details Textuals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investments In Affordable Housing Projects [Abstract] | ||
Loss from Affordable Housing Projects, Equity Method Investments | $9 | $8 |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | 12 | 9 |
Qualified Affordable Housing Project, Investments | 512 | 522 |
Qualified Affordable Housing Project Investments, Commitment | $130 | |
Affordable Housing Tax Credits Commitment, Year to be Paid | between 2015 and 2023 |
Accounts_Receivable_and_Loans_1
Accounts Receivable and Loans (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Accounts receivable segment information | ||||
Card Member receivables | $43,703 | $44,851 | ||
Less: Reserve for losses | 429 | 465 | 414 | 386 |
Card Member receivables, net | 43,274 | 44,386 | ||
Other receivables, net | 2,354 | 2,614 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 56 | 61 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 6,067 | 7,025 | ||
Non United States [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 12,000 | 13,300 | ||
U S Card Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 21,501 | 22,468 | ||
U S Card Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Gross Card Member receivables available to settle the obligations of a variable interest entity | 6,100 | 7,000 | ||
International Card Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 6,381 | 7,653 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 15,697 | 14,583 | ||
Global Commercial Services [Member] | Airline [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 638 | 636 | ||
Global Commercial Services [Member] | Airline [Member] | Delta [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 577 | 606 | ||
Global Network And Merchant Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $124 | $147 |
Accounts_Receivable_and_Loans_2
Accounts Receivable and Loans (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Loans segment information | ||||
Card Member loans, gross | $66,835 | $70,385 | ||
Less: Reserve for losses | 1,130 | 1,201 | 1,191 | 1,261 |
Card Member loans, net | 65,705 | 69,184 | ||
Other loans, net | 951 | 920 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, net of reserves | 13 | 12 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 27,600 | 30,115 | ||
U S Card Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 59,929 | 62,592 | ||
U S Card Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Gross Card Member loans available to settle the obligations of a variable interest entity | 27,600 | 30,100 | ||
International Card Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 6,848 | 7,744 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | $58 | $49 |
Accounts_Receivable_and_Loans_3
Accounts Receivable and Loans (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
U S Card Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | $59,356 | $61,995 |
30 to 59 days past due | 171 | 179 |
60 to 89 days past due | 126 | 128 |
90+ days past due | 276 | 290 |
Total aging | 59,929 | 62,592 |
U S Card Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 21,144 | 22,096 |
30 to 59 days past due | 124 | 129 |
60 to 89 days past due | 87 | 72 |
90+ days past due | 146 | 171 |
Total aging | 21,501 | 22,468 |
International Card Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 6,728 | 7,621 |
30 to 59 days past due | 40 | 39 |
60 to 89 days past due | 26 | 27 |
90+ days past due | 54 | 57 |
Total aging | 6,848 | 7,744 |
International Card Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 6,282 | 7,557 |
30 to 59 days past due | 30 | 29 |
60 to 89 days past due | 22 | 20 |
90+ days past due | 47 | 47 |
Total aging | 6,381 | 7,653 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
90+ days past due | 110 | 120 |
Total aging | $15,697 | $14,583 |
Accounts_Receivable_and_Loans_4
Accounts Receivable and Loans (Details 3) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
U S Card Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.50% | 1.70% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.70% | 1.90% |
30 Days Past Due as a % of Total | 1.00% | 1.10% |
U S Card Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.20% | 1.80% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.40% | 2.00% |
30 Days Past Due as a % of Total | 1.70% | 1.80% |
International Card Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.00% | 2.20% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.50% | 2.70% |
30 Days Past Due as a % of Total | 1.80% | 1.70% |
International Card Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.90% | 1.90% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.00% | 2.00% |
30 Days Past Due as a % of Total | 1.60% | 1.40% |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Loss Ratio as a % of Charge Volume | 0.10% | 0.09% |
90 days past billing as a percentage of receivables | 0.70% | 0.70% |
Accounts_Receivable_and_Loans_5
Accounts Receivable and Loans (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $225 | $218 |
Non-accrual loans | 220 | 241 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 288 | 334 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 45 | |
Total impaired loans and receivables | 778 | 793 |
Unpaid principal balance | 730 | 750 |
Related allowance for Troubled Debt Restructurings | 82 | 102 |
Accounts Receivable and Loans Textuals [Abstract] | ||
Total loans and receivables modified as a TDR, non-accrual | 31 | 34 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 18 | 26 |
Financing Receivable, Modifications, Out of Program - success, Recorded Investment | 34 | |
Financing Receivable, Modifications, Out of Program - not compliant, Recorded Investment | 11 | |
U S Card Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 171 | 161 |
Non-accrual loans | 220 | 241 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 261 | 286 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 44 | |
Total impaired loans and receivables | 696 | 688 |
Unpaid principal balance | 650 | 646 |
Related allowance for Troubled Debt Restructurings | 65 | 67 |
U S Card Services [Member] | Card Member Receivables [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 27 | 48 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 1 | |
Total impaired loans and receivables | 28 | 48 |
Unpaid principal balance | 26 | 48 |
Related allowance for Troubled Debt Restructurings | 17 | 35 |
International Card Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 54 | 57 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 0 | 0 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 0 | |
Total impaired loans and receivables | 54 | 57 |
Unpaid principal balance | 54 | 56 |
Related allowance for Troubled Debt Restructurings | $0 | $0 |
Accounts_Receivable_and_Loans_6
Accounts Receivable and Loans (Details 5) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | $786 | $906 |
Interest income recognized | 17 | 20 |
U S Card Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 692 | 793 |
Interest income recognized | 13 | 16 |
U S Card Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 38 | 50 |
Interest income recognized | 0 | 0 |
International Card Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 56 | 63 |
Interest income recognized | $4 | $4 |
Accounts_Receivable_and_Loans_7
Accounts Receivable and Loans (Details 6) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Account | Account | |
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 14,000 | 16,000 |
Aggregated Outstanding Balance | $120 | $143 |
Card Member Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 11,000 | 12,000 |
Aggregated Outstanding Balance | 80 | 96 |
Average basis point reduction in interest rate by class of Card Member loans | 12.00% | 14.00% |
Card Member Receivables [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 3,000 | 4,000 |
Aggregated Outstanding Balance | $40 | $47 |
Average payment term extension | 12 | 12 |
Accounts_Receivable_and_Loans_8
Accounts Receivable and Loans (Details 7) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Account | Account | |
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 3,000 | 3,000 |
Aggregated Outstanding Balance Upon Payment Default | $11 | $27 |
Card Member Loans [Member] | U S Card Services [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 2,000 | 2,000 |
Aggregated Outstanding Balance Upon Payment Default | 10 | 20 |
Card Member Receivables [Member] | U S Card Services [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 1,000 | 1,000 |
Aggregated Outstanding Balance Upon Payment Default | $1 | $7 |
Reserves_for_Losses_Details
Reserves for Losses (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in the Card Member receivables reserve for losses | ||
Balance, January 1 | $465 | $386 |
Card Member receivables - provisions | 174 | 215 |
Card Member receivables - net write-offs | -199 | -170 |
Card Member receivables - other | -11 | -17 |
Balance, March 31 | $429 | $414 |
Reserves_for_Losses_Details_1
Reserves for Losses (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Abstract] | ||
Card Member receivables evaluated individually for impairment | $28 | $48 |
Reserves on Card Member receivables evaluated individually for impairment | 17 | 35 |
Card Member receivables evaluated collectively for impairment | 43,675 | 44,803 |
Reserves on Card Member receivables evaluated collectively for impairment | $412 | $430 |
Reserves_for_Losses_Details_2
Reserves for Losses (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in the Card Member loans reserve for losses | ||
Balance, January 1 | $1,201 | $1,261 |
Card Member loans - provisions | 235 | 250 |
Card Member loans net write-offs - principal | -259 | -280 |
Card Member loans net write-offs - interest and fees | -43 | -42 |
Card Member loans - other | -4 | 2 |
Balance, March 31 | $1,130 | $1,191 |
Reserves_For_Losses_Details_3
Reserves For Losses (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Abstract] | ||
Card Member loans evaluated individually for impairment | $305 | $286 |
Reserves on Card Member loans evaluated individually for impairment | 65 | 67 |
Card Member loans evaluated collectively for impairment | 66,530 | 70,099 |
Reserves on Card Member loans evaluated collectively for impairment | $1,065 | $1,134 |
Reserves_For_Losses_Details_Te
Reserves For Losses (Details Textuals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables - other | ($11) | ($17) |
Card Member loans reserves for losses - other | -4 | 2 |
Allowance for Card Member Receivables and Reserves, Recoveries of Bad Debts | 99 | 92 |
Allowance for Card Member Loans, Recoveries of Bad Debts | 103 | 107 |
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | 31 | 2 |
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | 16 | -2 |
Unauthorized Transactions [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables - other | -7 | |
Card Member loans reserves for losses - other | -6 | |
Foreign Currency Translation Adjustments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables - other | -7 | 0 |
Card Member loans reserves for losses - other | -7 | -1 |
Other Items [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables - other | -4 | -10 |
Card Member loans reserves for losses - other | $3 | $9 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Available for Sale Securities by Type | ||
Cost | $4,267 | $4,280 |
Gross Unrealized Gains | 152 | 154 |
Gross Unrealized Losses | -2 | -3 |
Estimated Fair Value | 4,417 | 4,431 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 3,196 | 3,366 |
Gross Unrealized Gains | 126 | 129 |
Gross Unrealized Losses | -1 | -2 |
Estimated Fair Value | 3,321 | 3,493 |
U.S. Government agency obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 2 | 3 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 2 | 3 |
U.S. Government treasury obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 346 | 346 |
Gross Unrealized Gains | 6 | 4 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 352 | 350 |
Corporate debt securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 35 | 37 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 37 | 40 |
Mortgage-backed securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 120 | 128 |
Gross Unrealized Gains | 6 | 8 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 126 | 136 |
Equity securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 0 | 0 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1 | 1 |
Foreign government bonds and obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 518 | 350 |
Gross Unrealized Gains | 11 | 9 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 529 | 359 |
Availabe For Sale Securities Other [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 50 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | -1 | -1 |
Estimated Fair Value | $49 | $49 |
Investment_Securities_Details_
Investment Securities (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $0 | $0 |
Estimated Fair Value, 12 months or more | 73 | 105 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | -2 | -3 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 0 |
Estimated Fair Value, 12 months or more | 40 | 72 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | -1 | -2 |
Other [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 0 |
Estimated Fair Value, 12 months or more | 33 | 33 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | ($1) | ($1) |
Investment_Securities_Details_1
Investment Securities (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
securities | securities | |
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | 0 | 0 |
Number of securities, 12 months or more | 11 | 15 |
Number of securities, total | 11 | 15 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $0 | $0 |
Estimated Fair Value, 12 months or more | 73 | 105 |
Estimated Fair Value, Total | 73 | 105 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | -2 | -3 |
Gross Unrealized Losses, Total | -2 | -3 |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | 0 | 0 |
Number of securities, 12 months or more | 11 | 15 |
Number of securities, total | 11 | 15 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | 0 | 0 |
Estimated Fair Value, 12 months or more | 73 | 105 |
Estimated Fair Value, Total | 73 | 105 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | -2 | -3 |
Gross Unrealized Losses, Total | ($2) | ($3) |
Investment_Securities_Details_2
Investment Securities (Details 3) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | $736 |
Due after 1 year but within 5 years | 331 |
Due after 5 years but within 10 years | 239 |
Due after 10 years | 2,911 |
Total | 4,217 |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 737 |
Estimated Fair Value, Due after 1 year but within 5 years | 338 |
Estimated Fair Value, Due after 5 years but within 10 years | 255 |
Estimated Fair Value, Due after 10 years | 3,037 |
Total | $4,367 |
Investment_Securities_Details_3
Investment Securities (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Investment Securities (Details) [Abstract] | |||
Other-than-temporary impairments recognized during the period | $0 | $0 | |
Gain on sale of securities | 0 | 39 | |
Losses on sale of securities | $0 | $0 |
Asset_Securitizations_Details
Asset Securitizations (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets from Trusts [Line Items] | ||
Restricted cash | $54 | $64 |
American Express Charge Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | 1 | 2 |
American Express Lending Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | $53 | $62 |
Asset_Securitizations_Details_
Asset Securitizations (Details Textuals) (American Express Travel Related Services Company Inc [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Billions, unless otherwise specified | ||
American Express Travel Related Services Company Inc [Member] | ||
Securitized Trusts [Line Items] | ||
Subordinated securities owned | $1.20 | $1.20 |
Customer_Deposits_Details
Customer Deposits (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
U.S.: | ||
Interest-bearing | $44,142 | $43,279 |
Non-interest-bearing | 356 | 418 |
Non-U.S.: | ||
Interest-bearing | 113 | 115 |
Non-interest-bearing | 317 | 359 |
Total customer deposits | 44,928 | 44,171 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 317 | 372 |
Non-U.S.: | ||
Non-interest-bearing | $306 | $347 |
Customer_Deposits_Details_1
Customer Deposits (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
U.S. retail deposits: | ||
Savings accounts - Direct | $27,508 | $26,159 |
Certificates of deposit - Direct | 317 | 333 |
Certificates of deposit - Third party | 7,384 | 7,838 |
Sweep accounts - Third party | 8,933 | 8,949 |
Other retail deposits: | ||
Non-U.S. deposits and U.S. non-interest bearing deposits | 163 | 173 |
Card Member credit balances - U.S. and non-U.S. | 623 | 719 |
Total customer deposits | $44,928 | $44,171 |
Customer_Deposits_Details_2
Customer Deposits (Details 2) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Time Deposits By Maturity | |
2015 | $1,136 |
2016 | 2,160 |
2017 | 1,493 |
2018 | 1,535 |
2019 | 1,327 |
After 5 years | 72 |
Total | 7,723 |
United States [Member] | |
Time Deposits By Maturity | |
2015 | 1,115 |
2016 | 2,159 |
2017 | 1,493 |
2018 | 1,535 |
2019 | 1,327 |
After 5 years | 72 |
Total | 7,701 |
Non United States [Member] | |
Time Deposits By Maturity | |
2015 | 21 |
2016 | 1 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
After 5 years | 0 |
Total | $22 |
Customer_Deposits_Details_3
Customer Deposits (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Time Deposits $250,000 Or More [Abstract] | ||
U.S. | $109 | $111 |
Non-U.S. | 17 | 17 |
Total | $126 | $128 |
Contingencies_Details_Textuals
Contingencies (Details Textuals) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Contingencies (Textuals) [Abstract] | |
Range of possible loss, minimum | $0 |
Range of possible loss, maximum | $360 |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | $932 | $991 |
Total fair value of derivatives liabilties | 263 | 164 |
Risk Exposure Low [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, net | 483 | 620 |
Total derivative liabilities, net | 0 | 0 |
Derivative [Line Items] | ||
Total derivative assets, net | 483 | 620 |
Total derivative liabilities, net | 0 | 0 |
Individually Significant Counterparties [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, net | 0 | 0 |
Total derivative liabilities, net | 0 | 0 |
Derivative [Line Items] | ||
Total derivative assets, net | 0 | 0 |
Total derivative liabilities, net | 0 | 0 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | -233 | -158 |
Derivative asset and liability netting | -173 | -122 |
Total derivative assets, net | 526 | 711 |
Derivative [Line Items] | ||
Total derivative assets, net | 526 | 711 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 780 | 806 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 372 | 314 |
Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 408 | 492 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 152 | 185 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | 0 | -4 |
Derivative asset and liability netting | -173 | -122 |
Total derivative liabilities, net | 90 | 38 |
Derivative [Line Items] | ||
Total derivative liabilities, net | 90 | 38 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 115 | 50 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 148 | 114 |
Other Liabilities [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 0 | 4 |
Other Liabilities [Member] | Net Investment Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | $115 | $46 |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities (Details 1) (Fair Value Hedging [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Expense [Member] | Interest Rate Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative contract | $63 | ($51) |
Hedged item | -57 | 51 |
Net hedge ineffectiveness | 6 | 0 |
Other Income [Member] | Total Return Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative contract | 0 | 13 |
Hedged item | 0 | -13 |
Net hedge ineffectiveness | $0 | $0 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities (Details 2) (Not Designated as Hedging Instrument [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pretax gains (losses) | ($45) | $134 |
Other Expense [Member] | Foreign exchange contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pretax gains (losses) | ($45) | $134 |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | ||
Share data in Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 |
Derivatives and Hedging Activities (Textuals) [Abstract] | ||||
Net reduction in interest expense on long term debt and other | $70,000,000 | $69,000,000 | $0 | |
Derivative asset not offset | 0 | 0 | ||
Derivative liabilities not offset | 0 | 0 | ||
Shares held in equity investment sold | 0 | |||
Margin On Interest Rate Swap Not Netted | 111,000,000 | 114,000,000 | ||
Derivative [Line Items] | ||||
Equity investment | 1,000,000 | 1,000,000 | ||
Net hedge ineffectiveness | 0 | 0 | ||
Not Sold Or Repledged [Member] | ||||
Derivative [Line Items] | ||||
Securities received as collateral | 43,000,000 | 91,000,000 | ||
ICBC [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Equity investment | 0 | |||
Fair Value Hedges [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of long-term debt | 17,600,000,000 | 17,600,000,000 | ||
Net Investment Hedges [Member] | ||||
Derivative [Line Items] | ||||
Effective portion of gain (loss) on hedges | 195,000,000 | -17,000,000 | 0 | |
Net Investment Hedges [Member] | Net Investment Hedging [Member] | Other Expense [Member] | ||||
Derivative [Line Items] | ||||
Amount reclassified from AOCI into income | 0 | 17,000,000 | ||
Credit Valuation Adjustment [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of long-term debt | $0 | $0 |
Fair_Values_Details
Fair Values (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investment securities: | ||
Equity securities | $1 | $1 |
Debt securities and other | 4,416 | 4,430 |
Derivatives | 932 | 991 |
Total assets | 5,349 | 5,422 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities | 1 | 1 |
Debt securities and other | 352 | 350 |
Derivatives | 0 | 0 |
Total assets | 353 | 351 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities and other | 4,064 | 4,080 |
Derivatives | 932 | 991 |
Total assets | 4,996 | 5,071 |
Level 3 [Member] | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities and other | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | $0 | $0 |
Fair_Values_Details_1
Fair Values (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Liabilities [Abstract] | ||
Derivatives | $263 | $164 |
Total liabilities | 263 | 164 |
Level 1 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 263 | 164 |
Total liabilities | 263 | 164 |
Level 3 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | $0 | $0 |
Fair_Values_Details_2
Fair Values (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | $23,572,000,000 | $22,288,000,000 | $20,740,000,000 | $19,486,000,000 |
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 7,723,000,000 | |||
Long-term debt | 54,712,000,000 | 57,955,000,000 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 43,274,000,000 | 44,386,000,000 | ||
Card Member loans, net | 65,705,000,000 | 69,184,000,000 | ||
Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 16,419,000,000 | 19,516,000,000 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 24,000,000,000 | 22,000,000,000 | ||
Other financial assets | 46,000,000,000 | 48,000,000,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 67,000,000,000 | 70,000,000,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 59,000,000,000 | 61,000,000,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 8,000,000,000 | 8,000,000,000 | ||
Long-term debt | 55,000,000,000 | 58,000,000,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 24,000,000,000 | 22,000,000,000 | ||
Other financial assets | 46,000,000,000 | 48,000,000,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 67,000,000,000 | 71,000,000,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 59,000,000,000 | 61,000,000,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 8,000,000,000 | 8,000,000,000 | ||
Long-term debt | 57,000,000,000 | 60,000,000,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 16,500,000,000 | 19,500,000,000 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 6,000,000,000 | 7,000,000,000 | ||
Card Member loans, net | 27,500,000,000 | 29,900,000,000 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 23,000,000,000 | 21,000,000,000 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Level 2 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 1,000,000,000 | 1,000,000,000 | ||
Other financial assets | 46,000,000,000 | 48,000,000,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 59,000,000,000 | 61,000,000,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 8,000,000,000 | 8,000,000,000 | ||
Long-term debt | 57,000,000,000 | 60,000,000,000 | ||
Level 3 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 0 | 0 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 67,000,000,000 | 71,000,000,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 0 | 0 | ||
Long-term debt | $0 | $0 |
Fair_Values_Details_Textuals
Fair Values (Details Textuals) (Fair Value, Measurements, Nonrecurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Assets measured at fair value for impairment | $0 | $0 |
Guarantees_Details
Guarantees (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $46,000,000,000 | $45,000,000,000 |
Amount of related liability | 102,000,000 | 111,000,000 |
Return And Merchant Protection [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 38,000,000,000 | 37,000,000,000 |
Amount of related liability | 45,000,000 | 44,000,000 |
Other Guarantees [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 8,000,000,000 | 8,000,000,000 |
Amount of related liability | $57,000,000 | $67,000,000 |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive (Loss) Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in Other Comprehensive income | ||
Balances as of start of period | ($1,919) | |
Pension and other postretirement benefit gains | -23 | -27 |
Balances as of end of period | -2,151 | |
Accumulated Other Comprehensive Loss [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | -1,919 | -1,426 |
Net unrealized gains (losses) | 68 | |
(Decrease) increase due to amounts reclassified into earnings | 0 | -28 |
Net translation loss of investments in foreign operations | -450 | -18 |
Net losses gains related to hedges of investment in foreign operations | 195 | -17 |
Pension and other postretirement benefit gains | 23 | 27 |
Net change in accumulated other comprehensive income (loss) | -232 | 32 |
Balances as of end of period | -2,151 | -1,394 |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | 96 | 63 |
Net unrealized gains (losses) | 68 | |
(Decrease) increase due to amounts reclassified into earnings | 0 | -29 |
Net change in accumulated other comprehensive income (loss) | 0 | 39 |
Balances as of end of period | 96 | 102 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | -1,499 | -1,090 |
(Decrease) increase due to amounts reclassified into earnings | 0 | 1 |
Net translation loss of investments in foreign operations | -450 | -18 |
Net losses gains related to hedges of investment in foreign operations | 195 | -17 |
Net change in accumulated other comprehensive income (loss) | -255 | -34 |
Balances as of end of period | -1,754 | -1,124 |
Net Unrealized Pension and Other Postretirement Gains (Losses) [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | -516 | -399 |
Pension and other postretirement benefit gains | 23 | 27 |
Net change in accumulated other comprehensive income (loss) | 23 | 27 |
Balances as of end of period | ($493) | ($372) |
Changes_in_Accumulated_Other_C3
Changes in Accumulated Other Comprehensive (Loss) Income (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other non-interest revenue | $468 | $501 |
Interest expense on long-term debt and other | 307 | 345 |
Other expenses | 1,399 | 1,549 |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other non-interest revenue | 0 | 45 |
Income tax provision for other non-interest revenue | 0 | -16 |
(Decrease) increase due to amounts reclassified into earnings | 0 | 29 |
Foreign Currency Translation Adjustments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expenses | 0 | -2 |
Income tax benefit for other, net expense | 0 | 1 |
(Decrease) increase due to amounts reclassified into earnings | 0 | -1 |
Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
(Decrease) increase due to amounts reclassified into earnings | $0 | $28 |
NonInterest_Revenue_and_Expens2
Non-Interest Revenue and Expense Detail (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Foreign currency conversion fee revenue | $211 | $213 |
Delinquency fees | 195 | 181 |
Loyalty Partner-related fees | 91 | 91 |
Service fees | 87 | 90 |
Other | 35 | 43 |
Total other commissions and fees | $619 | $618 |
NonInterest_Revenue_and_Expens3
Non-Interest Revenue and Expense Detail (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Global Network Services partner revenues | $164 | $158 |
Net realized gains on investment securities | 0 | 39 |
Other | 304 | 304 |
Total other revenues | $468 | $501 |
NonInterest_Revenue_and_Expens4
Non-Interest Revenue and Expense Detail (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Professional services | $624 | $692 |
Occupancy and equipment | 434 | 462 |
Card and merchant-related fraud losses | 100 | 84 |
Communications | 88 | 93 |
Other | 153 | 218 |
Total other, net | $1,399 | $1,549 |
Income_Taxes_Details_Textuals
Income Taxes (Details Textuals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Taxes (Textuals) | ||
Unrecognized tax benefits as a result of potential resolutions of prior years' tax | $430 | |
Unrecognized tax benefits, amounts recorded to equity | $317 | |
Actual tax rates | 34.20% | 35.10% |
Internal Revenue Service (IRS) [Member] | Earliest Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years by major tax jurisdiction | 2008 | |
Internal Revenue Service (IRS) [Member] | Latest Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years by major tax jurisdiction | 2011 |
Earnings_Per_Common_Share_EPS_1
Earnings Per Common Share (EPS) (Details) (USD $) | 3 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Basic and diluted: | |||||
Net income | $1,525 | $1,432 | |||
Earnings allocated to participating share awards | -11 | -12 | |||
Net income attributable to common shareholders | 1,514 | 1,420 | |||
Denominator: | |||||
Basic | 1,019,000,000 | [1] | 1,060,000,000 | [1] | |
Add: Weighted-average stock options | 4,000,000 | 7,000,000 | |||
Diluted | 1,023,000,000 | [1] | 1,067,000,000 | [1] | |
Earnings Per Common Share, Basic [Abstract] | |||||
Income from continuing operations attributable to common shareholders | $1.49 | [1] | $1.34 | [1] | |
Earnings Per Common Share, Diluted [Abstract] | |||||
Income from continuing operations attributable to common shareholders | $1.48 | [1] | $1.33 | [1] | |
Earnings Per Common Share (Textuals) [Abstract] | |||||
Subordinated debentures | $750 | $750 | |||
Subordinated debt issuance year | 2006 | 2006 | |||
Subordinated debt maturity year | 2036 | 2036 | |||
Preferred shares, authorized | 20,000,000 | 20,000,000 | |||
Preferred shares, par value | $1.66 | ||||
Redemption amount | $1 million preferred shares (equivalent to $1,000/depository shares) | ||||
Stock options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per Share, amount | 500,000 | 200,000 | |||
[1] | Representsnet income less earnings allocated to participating share awards of $11 million and $12 million forthe three months endedMarch 31, 2015 and 2014, respectively. | ||||
Earnings_Per_Common_Share_EPS_2
Earnings Per Common Share (EPS) (Details 1) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Preferred Shares [Line Items] | |
Securities issued | 1,600 |
Series B | |
Preferred Shares [Line Items] | |
Issuance date | 10-Nov-14 |
Securities issued | 750 |
Depositary shares issued | 750,000 |
Aggregate liquidation preference | $750 |
Fixed dividend rate per annum | 5.20% |
Semi annual fixed dividend, payment dates | Beginning May 15, 2015 |
Floating dividend rate per annuam | 3 month LIBOR+ 3.428% |
Quarterly floating dividend, payment dates | Beginning February 15, 2020 |
Fixed to floating rate, conversion date | 15-Nov-19 |
Series C | |
Preferred Shares [Line Items] | |
Issuance date | 2-Mar-15 |
Securities issued | 850 |
Depositary shares issued | 850,000 |
Aggregate liquidation preference | $850 |
Fixed dividend rate per annum | 4.90% |
Semi annual fixed dividend, payment dates | Beginning September 15, 2015 |
Floating dividend rate per annuam | 3 month LIBOR+ 3.285% |
Quarterly floating dividend, payment dates | Beginning June 15, 2020 |
Fixed to floating rate, conversion date | 15-Mar-20 |
Reportable_Operating_Segments_
Reportable Operating Segments and Geographic Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Non-interest revenues | $6,503 | $6,836 |
Interest income | 1,857 | 1,776 |
Interest expense | 410 | 439 |
Total revenues, net of interest expense | 7,950 | 8,173 |
Net income | 1,525 | 1,432 |
U S Card Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-interest revenues | 3,148 | 2,991 |
Interest income | 1,529 | 1,423 |
Interest expense | 152 | 150 |
Total revenues, net of interest expense | 4,525 | 4,264 |
Net income | 934 | 876 |
International Card Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-interest revenues | 1,061 | 1,157 |
Interest income | 244 | 277 |
Interest expense | 64 | 82 |
Total revenues, net of interest expense | 1,241 | 1,352 |
Net income | 134 | 159 |
Global Commercial Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-interest revenues | 871 | 1,249 |
Interest income | 4 | 4 |
Interest expense | 48 | 59 |
Total revenues, net of interest expense | 827 | 1,194 |
Net income | 180 | 184 |
Global Network And Merchant Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-interest revenues | 1,270 | 1,293 |
Interest income | 20 | 10 |
Interest expense | -54 | -62 |
Total revenues, net of interest expense | 1,344 | 1,365 |
Net income | 444 | 443 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-interest revenues | 153 | 146 |
Interest income | 60 | 62 |
Interest expense | 200 | 210 |
Total revenues, net of interest expense | 13 | -2 |
Net income | ($167) | ($230) |