Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN EXPRESS COMPANY | |
Trading Symbol | AXP | |
Entity Central Index Key | 4,962 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
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 | 984,245,923 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||
Non-interest revenues | |||||||
Discount revenue | $ 4,778 | $ 4,889 | [1] | $ 14,384 | $ 14,428 | ||
Net card fees | 679 | 680 | 2,013 | 2,041 | |||
Travel commissions and fees | 87 | 104 | 271 | 1,027 | |||
Other commissions and fees | 640 | 642 | 1,891 | 1,884 | |||
Other | 504 | 593 | 1,493 | 1,679 | |||
Total non-interest revenues | 6,688 | 6,908 | 20,052 | 21,059 | |||
Interest income | |||||||
Interest on loans | 1,847 | 1,753 | 5,418 | 5,160 | |||
Interest and dividends on investment securities | 38 | 45 | 120 | 136 | |||
Deposits with banks and other | 19 | 17 | 60 | 54 | |||
Total interest income | 1,904 | 1,815 | 5,598 | 5,350 | |||
Interest expense | |||||||
Deposits | 125 | 91 | 337 | 276 | |||
Long-term debt and other | 274 | 329 | 886 | 1,026 | |||
Total interest expense | 399 | 420 | 1,223 | 1,302 | |||
Net interest income | 1,505 | 1,395 | 4,375 | 4,048 | |||
Total revenues net of interest expense | 8,193 | 8,303 | 24,427 | 25,107 | |||
Provisions for losses | |||||||
Charge card | 203 | 196 | 542 | 594 | |||
Card Member loans | 309 | 265 | 829 | 797 | |||
Other | 17 | 27 | 45 | 71 | |||
Total provisions for losses | 529 | 488 | 1,416 | 1,462 | |||
Total revenues net of interest expense after provisions for losses | 7,664 | 7,815 | 23,011 | 23,645 | |||
Expenses | |||||||
Marketing and promotion | 847 | 783 | 2,217 | 2,329 | |||
Card Member rewards | 1,763 | 1,695 | 5,202 | 5,050 | |||
Card Member services and other | 269 | 205 | 772 | 619 | |||
Salaries and employee benefits | 1,212 | 1,290 | 3,767 | 4,488 | |||
Other, net | 1,635 | 1,596 | 4,569 | 4,393 | |||
Total expenses | 5,726 | 5,569 | 16,527 | 16,879 | |||
Pretax income | 1,938 | 2,246 | 6,484 | 6,766 | |||
Income tax provision | 672 | 769 | 2,220 | 2,328 | |||
Net income | $ 1,266 | $ 1,477 | $ 4,264 | $ 4,438 | |||
Earnings Per Common Share, Basic [Abstract] | |||||||
Income from continuing operations attributable to common shareholders | $ 1.24 | $ 1.41 | $ 4.16 | $ 4.19 | |||
Earnings Per Common Share, Diluted [Abstract] | |||||||
Income from continuing operations attributable to common shareholders | $ 1.24 | $ 1.4 | $ 4.15 | $ 4.17 | |||
Average common shares outstanding for earnings per common share: | |||||||
Basic | 994 | 1,041 | 1,007 | 1,051 | |||
Diluted | 997 | 1,047 | 1,011 | 1,057 | |||
Cash dividends declared per common share | $ 0.29 | $ 0.26 | $ 0.84 | [2] | $ 0.75 | [2] | |
[1] | Represents net income less ( i ) earnings allocated to participating share awards of $ 10 million and $ 11 million for the three months ended September 30 , 2015 and 2014 , respect ively, and (ii) dividends on preferred shares of $ 22 million and nil for the three months ended September 30 , 2015 and 2014 , respectively. | ||||||
[2] | Represents net income less ( i ) earnings allocate d to participating share awards of $ 32 million and $ 35 million for the nine months ended September 30 , 2015 and 2014 , respectively, and (ii) di vidends on preferred shares of $ 42 million and nil for the nine months ended September 30 , 2015 and 2014 , respectively. |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Income [Abstract] | ||||
Earnings allocated to participating share awards | $ 10 | $ 11 | $ 32 | $ 35 |
Preferred dividends | $ 22 | $ 0 | $ 42 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,266 | $ 1,477 | $ 4,264 | $ 4,438 |
Other comprehensive (loss) income: | ||||
Net unrealized securities (losses) gains, net of tax | (7) | (11) | (27) | 31 |
Foreign currency translation adjustments, net of tax | (220) | (167) | (464) | (195) |
Net unrealized pension and other postretirement benefit gains, net of tax | 7 | 7 | 36 | 48 |
Other comprehensive (loss) income | (220) | (171) | (455) | (116) |
Comprehensive income | $ 1,046 | $ 1,306 | $ 3,809 | $ 4,322 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive Income Loss Textuals [Abstract] | ||||
Net unrealized securities gains (losses), tax | $ (2) | $ (5) | $ (13) | $ 19 |
Foreign currency translation adjustments, tax | 181 | 119 | 221 | 41 |
Net unrealized pension and other postretirement benefit gains, tax | $ 8 | $ 9 | $ 24 | $ 29 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | ||
Cash and due from banks | $ 2,613 | $ 2,628 |
Interest-bearing deposits in other banks (includes securities purchased under resale agreements) | 16,716 | 19,190 |
Short-term investment securities | 609 | 470 |
Total cash and cash equivalents | 19,938 | 22,288 |
Accounts receivable | ||
Card Member receivables (includes gross receivables available to settle obligations of consolidated variable interest entities) | 43,890 | 44,386 |
Other receivables, less reserves | 2,517 | 2,614 |
Loans | ||
Card Member loans (includes gross loans available to settle obligations of consolidated variable interest entities) | 67,731 | 69,184 |
Other loans, less reserves | 1,054 | 920 |
Investment securities | 3,947 | 4,431 |
Premises and equipment, less accumulated depreciation and amortization | 4,032 | 3,938 |
Other assets (includes restricted cash of consolidated variable interest entities | 11,107 | 11,342 |
Total assets | 154,216 | 159,103 |
Liabilities | ||
Customer deposits | 49,301 | 44,171 |
Travelers Cheques and other prepaid products | 3,044 | 3,673 |
Accounts payable | 11,340 | 11,300 |
Short-term borrowings | 3,160 | 3,480 |
Long-term debt (includes debt issued by consolidated variable interest entities) | 48,653 | 57,955 |
Other liabilities | 17,383 | 17,851 |
Total liabilities | 132,881 | 138,430 |
Shareholders' Equity | ||
Preferred shares | 0 | 0 |
Common shares | 197 | 205 |
Additional paid-in capital | 13,487 | 12,874 |
Retained earnings | 10,025 | 9,513 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, net of tax: 2015, $39; 2014, $52 | 69 | 96 |
Foreign currency translation adjustments, net of tax: 2015, $(96); 2014, $(317) | (1,963) | (1,499) |
Net unrealized pension and other postretirement benefit losses, net of tax: 2015, $(199); 2014, $(223) | (480) | (516) |
Total accumulated other comprehensive loss | (2,374) | (1,919) |
Total shareholders equity | 21,335 | 20,673 |
Total liabilities and shareholders equity | $ 154,216 | $ 159,103 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Card Member receivables, gross | $ 44,331 | $ 44,851 |
Card Member loans, gross | 68,895 | 70,385 |
Other assets | 11,107 | 11,342 |
Long-term debt | 48,653 | 57,955 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 222 | 204 |
Accounts receivable | ||
Card Member receivables, reserves | 441 | 465 |
Other receivables, reserves | 61 | 61 |
Loans | ||
Card Member loans, reserves | 1,164 | 1,201 |
Other loans, reserves | 18 | 12 |
Accumulated depreciation and amortization | 6,733 | 6,270 |
Restricted cash | $ 748 | $ 64 |
Common shares, par value | $ 0.2 | $ 0.2 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 985,000,000 | 1,023,000,000 |
Common shares, outstanding | 985,000,000 | 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 | $ 1.667 | $ 1.667 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, tax | $ 39 | $ 52 |
Foreign currency translation adjustments, tax | (96) | (317) |
Net unrealized pension and other postretirement benefit losses, tax | (199) | (223) |
Variable Interest Enterprise [Member] | ||
Card Member receivables, gross | 5,959 | 7,025 |
Card Member loans, gross | 27,284 | 30,115 |
Long-term debt | 13,285 | 19,516 |
Loans | ||
Restricted cash | $ 748 | $ 64 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net income | $ 4,264 | $ 4,438 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Provisions for losses | 1,416 | 1,462 |
Depreciation and amortization | 780 | 764 |
Deferred taxes and other | 25 | (497) |
Stock-based compensation | 200 | 210 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||
Other receivables | (166) | 275 |
Other assets | 1,864 | 850 |
Accounts payable and other liabilities | 270 | 1,793 |
Travelers Cheques and other prepaid products | (579) | (709) |
Net cash provided by operating activities | 8,074 | 8,586 |
Cash Flows from Investing Activities | ||
Sales of available-for-sale investment securities | 12 | 122 |
Maturities and redemptions of available-for-sale investment securities | 1,821 | 966 |
Purchase of investments | (1,564) | (825) |
Net increase in Card Member receivables/loans | (1,292) | (2,349) |
Purchase of premises and equipment, net of sales | (879) | (854) |
Business acquisitions, net of cash acquired | (122) | (130) |
Net (increase) decrease in restricted cash | (683) | 90 |
Net cash used in investing activities | (2,707) | (2,980) |
Cash Flows from Financing Activities | ||
Net increase in customer deposits | 5,171 | 917 |
Net increase (decrease) in short-term borrowings | (273) | (1,595) |
Issuance of long-term debt | 7,925 | 11,329 |
Principal payments on long-term debt | (17,110) | (10,659) |
Issuance of American Express preferred shares | 841 | |
Issuance of American Express common shares | 169 | 251 |
Repurchase of American Express common shares | (3,330) | (3,205) |
Dividends paid | (868) | (770) |
Net cash used in financing activities | (7,475) | (3,732) |
Effect of foreign currency exchange rates on cash and cash equivalents | (242) | (96) |
Net (decrease) increase in cash and cash equivalents | (2,350) | 1,778 |
Cash and cash equivalents at beginning of year | 22,288 | 19,486 |
Cash and cash equivalents at end of year | $ 19,938 | $ 21,264 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Increase decrease in debt exchange [Line Items] | ||
Purchase of premises and equipment | $ 32 | $ 3 |
Non-cash financing activities [Abstract] | ||
Gain on business travel joint venture | $ 0 | $ 641 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation | 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 se 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, inc luding 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 incorporate d 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 f inancial 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 accountin g estimates reflect the best judgment of management, but actual results could differ. In the first quarter of 2015, the Company changed the classification related to certain payments to partners, reducing both discount revenue and marketing and promotion expense. Prior period amounts have been re classified to conform to the current period presentation. None of the prior period financial statements were materially misstated from this misclassification. Recently Issued Accounting Standards In May 2014, the F inancial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition. The guidance establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs relat ed to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. The guidance, as amended, supersedes most of the current revenue recognition requirements, and is effective January 1, 2018, with early adoption as of January 1, 2017, permitted. 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. I n January 2014, the FASB issued new accounting guidance on investments in Qualified Affordable Housing projects. Provided certain conditions are met, this standard permits entities to account for investments in Qualified Affordable Housing projects using t he 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 firs t 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 and nine months ended September 30, 2015, the Company recognized equity method losses related to Qualified Affordable Housing of $14 million and $34 million, respectively, which were recognized in Other, net expenses; and associated tax credits of $15 million and $39 mill ion, respectively, which were recognized in Income tax provision. Similarly, during the three and nine months ended September 30, 2014, the Company recognized equity method losses of $7 million and $39 million, respectively; and associated tax credits of $12 million and $30 million, respectively. The carrying value of these investments was $605 million and $522 million as of September 30, 2015 and December 31, 2014, respectively. In addition, as of September 30, 2015, the Company is contractually committ ed to provide additional funding related to certain of these investments, resulting in a liability of $134 million for unfunded commitments reported in Other liabilities, which is expected to be paid between 2015 and 2023. |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2015 | |
Business Combination Disclosure [Abstract] | |
Divestitures | 2. Divestiture and Portfolio Sale 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 s . Prior to the deconsol idation, 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. On October 26, 2015, the Company reached an agreement t o sell the outstanding Card Member loan portfolio related to its co-brand partnership with JetBlue Airways Corporation (JetBlue). The carrying amount of the portfolio of JetBlue Card Member loans is not material to the Company’s financial position and is reported within the U.S. Card Services (USCS) segment. . The sal e is subject to customary closing conditions, and is expected to be consummated in the first quarter of 2016, at which time the related gain will be recognized. |
Accounts Receivable and Loans
Accounts Receivable and Loans | 9 Months Ended |
Sep. 30, 2015 | |
Loans Notes Trade And Other Receivables Disclosure [Abstract] | |
Accounts Receivable and Loans | 3 . Accounts Receivable and Loans T he 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 September 30 , 2015 and December 31, 2014 , consisted of : (Millions) 2015 2014 U.S. Card Services (a) $ 21,965 $ 22,468 International Card Services 6,511 7,653 Global Commercial Services (b) 15,748 14,583 Global Network & Merchant Services (c) 107 147 Card Member receivables (d) 44,331 44,851 Less: Reserve for losses 441 465 Card Member receivables, net $ 43,890 $ 44,386 Other receivables, net (e) $ 2,517 $ 2,614 Includes $ 6.0 b illion and $ 7.0 billion of gross Card Member receivables available to settle obligations of a consolidated variable interest entity (VIE) as of September 30 , 2015 and December 31, 2014 , respectively. Includes $ 327 m illion and $ 636 million due from airlines, of which Delta Air Lines comprises $ 265 million and $ 606 million as of September 30 , 2015 and December 31, 2014 , respectively. Includes receivables primarily related to the Company’ s International Currency Card portfolios. Includes approximately $ 12.3 billion and $ 13.3 billion of Card Member receivables outside the U.S. as of September 30 , 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 $ 61 million as of both September 30 , 2015 and December 31, 2014 . Loans by segment as of September 30 , 2015 and December 31, 2014 , consisted of: (Millions) 2015 2014 U.S. Card Services (a) $ 62,133 $ 62,592 International Card Services 6,710 7,744 Global Commercial Services 52 49 Card Member loans 68,895 70,385 Less: Reserve for losses 1,164 1,201 Card Member loans, net $ 67,731 $ 69,184 Other loans, net (b) $ 1,054 $ 920 Includes approximately $ 27.3 billion and $ 30.1 billion of gross Card Member loans available to settle obligations o f a consolidated VIE as of September 30 , 2015 and December 31, 2014 , respectively. Other loans primarily represent loans to merchants . Other loans are presented net of reserves for losses of $ 18 million and $ 12 million as of September 30 , 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 September 30 , 2015 and D ecember 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 $ 61,530 $ 191 $ 131 $ 281 $ 62,133 International Card Services 6,604 35 22 49 6,710 Card Member Receivables: U.S. Card Services $ 21,612 $ 133 $ 73 $ 147 $ 21,965 International Card Services 6,412 29 22 48 6,511 Global Commercial Services (a) (b) (b) (b) 112 15,748 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 sho wn 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 ar e 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 qual ity indicators as of or for the nine months ended September 30 : 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 1.4 % 1.6 % 1.0 % 1.6 % 1.8 % 1.0 % International Card Services 2.0 % 2.4 % 1.6 % 2.0 % 2.4 % 1.6 % Card Member Receivables: U.S. Card Services 1.8 % 2.0 % 1.6 % 1.7 % 1.9 % 1.6 % International Card Services 2.1 % 2.2 % 1.5 % 2.0 % 2.1 % 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 0.09 % 0.7 % 0.09 % 0.8 % 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 f ees is also presented. The nine months ended September 30 , 2015, reflects the impact of a change in the timing of charge-offs for Card Member loans and receivables in ce rtain modification programs from 180 days past due to 120 days past due , which was fully recognized during the three months ended March 31, 2015 . Impaired Card Member Loans and R eceivables Impaired loans and receivables are individual larger balance or homoge neous 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 pro spective basis the Company continue s to classify Card Member accounts that have exited a modification program as a Troubled Debt Restructurin g (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 September 30 , 2015 and December 31, 2014 : As of September 30, 2015 Over 90 days Accounts Classified as a TDR (c) Past Due & Total Unpaid Accruing Non- Out of Impaired Principal Allowance (Millions) Interest (a) Accruals (b) In Program (d) Program (e) Balance Balance for TDRs Card Member Loans: U.S. Card Services $ 192 $ 175 $ 224 $ 109 $ 700 $ 649 $ 66 International Card Services 49 ― ― ― 49 49 ― Card Member Receivables: U.S. Card Services ― ― 26 4 30 30 18 Total $ 241 $ 175 $ 250 $ 113 $ 779 $ 728 $ 84 As of December 31, 2014 Over 90 days Past Due & Total Unpaid Accruing Non- In Program Impaired Principal Allowance (Millions) Interest (a) Accruals (b) TDRs (c)(d) 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 (generally 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 . Accou nts classified as a TDR include $ 19 million and $ 26 million that are over 90 days past due and accruing interest and $ 25 million and $ 34 millio n that are non-accrual as of September 30 , 2015 and December 31, 2014 , respectively . In Program TDRs include Card Member accounts that are currentl y enroll ed in a modification program. Out of Pro gram TDRs include $82 million of Card Member accounts that have successfully complete d a modification program and $31 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 are not significant for GCS) and the average balance s of impaired Card Member r eceivables (which are not significant for ICS and GCS) for the three and nine months ended September 30 : Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Average Interest Income Average Interest Income 2015 (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Card Services $ 693 $ 16 $ 685 $ 43 International Card Services 53 3 55 10 Card Member Receivables: U.S. Card Services 28 ― 35 ― Total $ 774 $ 19 $ 775 $ 53 Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Average Interest Income Average Interest Income 2014 (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Card Services $ 675 $ 12 $ 734 $ 37 International Card Services 63 4 63 12 Card Member Receivables: U.S. Card Services 44 ― 47 ― Total $ 782 $ 16 $ 844 $ 49 Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to the USCS Card Member loans and receivables modified as TDRs for the three and nine months ended September 30 , 2015 and 2014 . The ICS Card Member loans and receivables modifications were not significant and the Company does not offer modification programs for its GCS Card Member receivables; therefore, these segments are not included in the following TDR disclosures. Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Average Average Average Payment Average Payment Number of Outstanding Interest Rate Term Number of Outstanding Interest Rate Term Accounts Balances (a) Reduction Extension Accounts Balances (a) Reduction Extension (thousands) (millions) (% Points) (Months) (thousands) (millions) (% Points) (Months) Troubled Debt Restructurings: Card Member Loans 10 $ 69 9 (b) 31 $ 218 10 (b) Card Member Receivables 3 37 (c) 12 9 111 (c) 12 Total 13 $ 106 40 $ 329 Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Average Average Average Payment Average Payment Number of Outstanding Interest Rate Term Number of Outstanding Interest Rate Term Accounts Balances (a) Reduction Extension Accounts Balances (a) Reduction Extension (thousands) (millions) (% Points) (Months) (thousands) (millions) (% Points) (Months) Troubled Debt Restructurings: Card Member Loans 11 $ 83 9 (b) 35 $ 261 11 (b) Card Member Receivables 4 41 (c) 12 11 129 (c) 12 Total 15 $ 124 46 $ 390 Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans , and principal and fees on Card Member receivables. Modifications did not reduce the principal balance. 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 and nine months ended September 30 , 2015 and 2014 , with respect to the USCS Card Member loans and receivables modified as TDRs that subsequently defaulted w ithin 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 receivabl es. Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Outstanding Outstanding Number of Balances Number of Balances Accounts Upon Default Accounts Upon Default (thousands) (millions) (a) (thousands) (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 1 $ 14 6 $ 39 Card Member Receivables 1 1 3 3 Total 2 $ 15 9 $ 42 Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Outstanding Outstanding Number of Balances Number of Balances Accounts Upon Default Accounts Upon Default (thousands) (millions) (a)(b) (thousands) (millions) (a)(b) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 2 $ 12 6 $ 40 Card Member Receivables 1 2 2 9 Total 3 $ 14 8 $ 49 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. The outstanding balances upon default have been revised to reflect the exclusion of written off accounts, which are not material. |
Reserves for Losses
Reserves for Losses | 9 Months Ended |
Sep. 30, 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 receivables and loans 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 nine months ended September 30 : (Millions) 2015 2014 Balance, January 1 $ 465 $ 386 Provisions (a) 542 594 Net write-offs (b) (544) (527) Other (c) (22) (21) Balance, September 30 $ 441 $ 432 P rovisions for principal and fee reserve components. Consists of principal and fee components, less recoveries of $ 302 million and $ 269 million, including net write-offs from TDRs of $ 49 million and $ 14 million, for the nine months ended September 30 , 2015 and 2014 , respectively. For the nine months ended September 30 , 2015 , includes foreign currency translation adjustments of $(13) million, and other adjustments of $(9 ) million. For the nine months ended September 30 , 2014 , includes foreign currency translation adjustment s of $(6) million, other adjustments of $(8 ) million , and an adjustment related to reserves for card-related fraud losses of $(7) million , which were re classified to O ther liabilities in the first quarter of 2014. Card Member Receivables Evaluated Individually and Collectively for Impairment The following table presents Card Member receivables evaluated individually and collectively for impair ment , and related reserves , as of September 30 , 2015 and December 31, 2014 : (Millions) 2015 2014 Card Member receivables evaluated individually for impairment (a) $ 30 $ 48 Related reserves (a) $ 18 $ 35 Card Member receivables evaluated collectively for impairment $ 44,301 $ 44,803 Related reserves (b) $ 423 $ 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 nine months ended September 30 : (Millions) 2015 2014 Balance, January 1 $ 1,201 $ 1,261 Provisions (a) 829 797 Net write-offs Principal (b) (733) (786) Interest and fees (b) (122) (124) Other (c) (11) (2) Balance, September 30 $ 1,164 $ 1,146 P rovisions for principal , interest and fee reserve components. Consists of principal write-offs, less recoveries of $ 320 million and $ 324 million , including net write-offs/(recoveries) from TDRs of $ 30 million and $ (5) million , for the nine months ended September 30 , 2015 and 2014 , respectively. Recoveries of interest and fees were de minimis . For the nine months ended September 30 , 2015 , includes foreign currency translation adjustments of $(18) million, and other adjustments of $7 million. For the nine months ended September 30 , 2014 , includes foreign currency translation adjustments of $(7) million, other adjustments of $11 million, and an adjustment related to reserves for card-related fraud losses of $ (6) million, which were reclassified to O ther liabilities in the first quarter of 2014. Card Member Loans Evaluated Individually and Collectively for Impairment The following table presents Card Member loans evaluated individually and collectively for im pairment , and related reserves , as of September 30 , 2015 and December 31, 2014 : (Millions) 2015 2014 Card Member loans evaluated individually for impairment (a) $ 333 $ 286 Related reserves (a) $ 66 $ 67 Card Member loans evaluated collectively for impairment (b) $ 68,562 $ 70,099 Related reserves (b) $ 1,098 $ 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 r eserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 5 . Investment Securities Investment securities principally include debt securities that 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 Loss , 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 September 30 , 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 $ 2,971 $ 97 $ (4) $ 3,064 $ 3,366 $ 129 $ (2) $ 3,493 U.S. Government agency obligations 2 ― ― 2 3 ― ― 3 U.S. Government treasury obligations 297 5 ― 302 346 4 ― 350 Corporate debt securities 30 1 ― 31 37 3 ― 40 Mortgage-backed securities (a) 109 5 ― 114 128 8 ― 136 Equity securities ― 1 ― 1 ― 1 ― 1 Foreign government bonds and obligations 379 6 (1) 384 350 9 ― 359 Other (b) 50 ― (1) 49 50 ― (1) 49 Total $ 3,838 $ 115 $ (6) $ 3,947 $ 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 September 30 , 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 $ 59 $ (2) $ 13 $ (2) $ ― $ ― $ 72 $ (2) Foreign government bonds and obligations 31 (1) ― ― ― ― ― ― Other ― ― 33 (1) ― ― 33 (1) Total $ 90 $ (3) $ 46 $ (3) $ ― $ ― $ 105 $ (3) The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of September 30 , 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 ($ in Millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2015: 90%–100% 35 $ 88 $ (3) 12 $ 37 $ (2) 47 $ 125 $ (5) Less than 90% ― ― ― 2 9 (1) 2 9 (1) Total as of September 30, 2015 35 $ 88 $ (3) 14 $ 46 $ (3) 49 $ 134 $ (6) 2014: 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 doe s 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 a nd interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment during the periods presented. Contractual maturities of investment securities with stated maturities as of September 30 , 2015 , were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 459 $ 459 Due after 1 year but within 5 years 324 331 Due after 5 years but within 10 years 259 275 Due after 10 years 2,746 2,832 Total (a) $ 3,788 $ 3,897 Balances primarily represent investments in state and municipal obligations, and foreign government bonds and obligations. 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. Supplemental Information Gross realized gains on the sales of investment securities, included in Other revenues, were $1 million for both the three and nine months ended September 30 , 2015 , and $20 million and $100 million for the three and nine months ended September 30 , 2014 , respectively. There were no realized losses during any of these periods. |
Asset Securitizations
Asset Securitizations | 9 Months Ended |
Sep. 30, 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, and collectively, the Trusts ) as of September 30 , 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 747 62 Total $ 748 $ 64 These amounts relate to collections of Card Member receivables and loans to be used by the T rusts to fund future expenses and obligations, including interest 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 Trusts. Excluding its consolidated subsidiaries, TRS owns approximately $ 1.0 billion of subordinated securities issued by the Lending Trust as of September 30 , 2015 . Under the respective terms of the Charge Trust and Lending Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each trust could result in payment o f trust expenses, establishment of reserve funds, or in a worst-case scenario, early amortiza tion of investor securities. During the nine months ended September 30 , 2015 and the year ended December 31, 2014 , no such triggering events occurred. |
Customer Deposits
Customer Deposits | 9 Months Ended |
Sep. 30, 2015 | |
Deposit Liabilities Disclosures [Abstract] | |
Customer Deposits | 7 . C ustomer D eposits As of September 30 , 2015 and December 31, 2014 , customer deposits we re categorized as interest bearing or non-interest bearing , as follows : (Millions) 2015 2014 U.S.: Interest bearing $ 48,513 $ 43,279 Non-interest bearing (includes Card Member credit balances of: 2015, $312; 2014, $372) 356 418 Non-U.S.: Interest bearing 106 115 Non-interest bearing (includes Card Member credit balances of: 2015, $314; 2014, $347) 326 359 Total customer deposits $ 49,301 $ 44,171 C ustomer deposits by deposit type as of September 30 , 2015 and December 31, 2014 , were as follows : (Millions) 2015 2014 U.S. retail deposits: Savings accounts – Direct $ 28,229 $ 26,159 Certificates of deposit: Direct 291 333 Third-party 11,053 7,838 Sweep accounts – Third-party 8,940 8,949 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 162 173 Card Member credit balances ― U.S. and non-U.S. 626 719 Total customer deposits $ 49,301 $ 44,171 The scheduled maturities of certificates of deposit as of September 30 , 2015 , we re as follows: (Millions) U.S. Non-U.S. Total 2015 $ 398 $ 18 $ 416 2016 2,411 5 2,416 2017 2,730 ― 2,730 2018 2,527 ― 2,527 2019 1,846 ― 1,846 After 5 years 1,432 ― 1,432 Total $ 11,344 $ 23 $ 11,367 As of September 30 , 2015 and December 31, 2014 , certificates of deposit in denominations of $25 0,000 or more , in the aggregate , were as follows: (Millions) 2015 2014 U.S. $ 106 $ 111 Non-U.S. 17 17 Total $ 123 $ 128 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Contingencies Disclosure [Abstract] | |
Contingencies | 8 . Contingencies In the ordinary course of business, the Company and its subsidiaries are subject to various claims, investigations, examinations, pending and potential legal actions, and other matters relating to compliance with laws and regulations (collectively, legal proceedings). The Company discloses its material legal proceedings 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. The Company has recorded reserves for certain of its outstanding legal proceedings. A reserve is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated r ange 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 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 th e damages claimed by the plaintiff or class, 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 u nsupported. 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 an amount of loss or a range of possible loss. Other matter s have progressed sufficiently through discovery and/or development of important factual information and legal issues so that the Company is able to estimate an amount of loss or a range of possible loss. Accordingly, for those disclosed material legal pr oceedings where a loss is reasonably possible in future periods, whether in excess of a related reserve for legal contingencies or where there is no such liability, and for which the Company is able to estimate a range of possible loss, the current estimat ed range is zero to $370 million in excess of any reserves related to these matters. This range represents management’s estimate based on currently available information and does not represent the Company’s maximum loss exposure; actual results may vary si gnificantly. As such proceedings evolve, including the merchant claims described under Part II, Item 1. “Legal Proceedings” in this Quarterly Report on Form 10-Q, we may need to increase our range of possible loss or reserves for legal contingencies. Base d 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 legal proceeding that would have a material adverse effect on the Com pany’s consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, it is possible that the outcome of legal proceedings, including the possible resolution of merchant claims, could have a material impact on the Company’s results of operations. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 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 a n integral component of the Company’s market risk management. The Company does not transact 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 a s of September 30 , 2015 and December 31, 2014 , the Company does not have derivative positions that warrant credit valuation adjustments . The following t able summarizes the total fair value, excluding interest acc ruals, of derivative assets and l iabilities as of September 30 , 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 $ 391 $ 314 $ ― $ 4 Foreign exchange contracts Net investment hedges 385 492 102 46 Total derivatives designated as hedging instruments 776 806 102 50 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (a) 146 185 116 114 Total derivatives, gross 922 991 218 164 Less: Cash collateral netting (b) (307) (158) ― (4) Derivative asset and derivative liability netting (c) (130) (122) (130) (122) Total derivatives, net (d) $ 485 $ 711 $ 88 $ 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. From time to time, the Company also receives non-cash collateral from counterparties in the form of security interests in U.S. Treasury secur ities, which reduces the Company’s risk exposure, but does not reduce the net exposure on the Company’s Consolidated Balance Sheets. The Company had such non-cash collateral as of December 31, 2014 with a fair value of $ 91 million, none of which was sold or repledged . The Company did not have any such non-cash collateral as of September 30, 2015. Additionally, the Company posted $ 155 million and $ 114 million as of September 30, 2015 and December 31, 2014, respectively, as initial marg in 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 counterpa rty. The total net derivative assets and derivative liabilities are presented within O ther assets and O ther liabilities on the Company’s Consolidated Balance Sheets. A majority of the Company’s derivative assets and liabilities as of September 30 , 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 B alance 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 September 30 , 2015 and December 31, 2014 , the Company hedged $ 18.5 billion and $ 17.6 billion , respectively, 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 and nine months ended September 30 : Three Months Ended September 30: (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 $ 108 $ (109) Other expenses $ (114) $ 112 $ (6) $ 3 Nine Months Ended September 30: (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 $ 82 $ (170) Other expenses $ (85) $ 176 $ (3) $ 6 Total return contract Other non-interest revenues ― 11 Other non-interest revenues ― (11) ― ― The Company also recognized a net reduction in interest expense on long-term debt of $ 73 million and $ 74 million for the three months ended September 30 , 2015 and 2014 , respectively, and $ 214 million and $ 217 million for the nine months ended September 30 , 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 on net investment hedges, net of taxes, recorded in Accumulated Other Comprehensive Loss as part of the cumulative translation adjustment was $ 384 million and $ 246 million for the three months ended September 30 , 2015 and 2014 , respectively, and $ 545 million and $ 113 million for the nine months ended September 30 , 2015 and 2014 , respectively, with any ineffective portion recognized in Other expenses during the period of change. During the three months ended September 30 , 2015 and 2014 , the Company reclassified nil and $ (1) million, respectively, and $ 1 million and $ 9 million for the nine months ended September 30, 2015 and 2014, respectively, from Accumul ated Other Comprehensive Loss to earnings as a component of Other expenses , including i neffectiveness associated with net investment hedges of nil and $ 1 million for the three and nine months ended September 30, 2015, respectively. The f ollowing table summarizes the impact on the Consolidated Statements of Income associated with the Company’s derivatives n ot designated as hedges : Pretax (losses) gains Three Months Ended Nine Months Ended September 30, September 30, Amount Amount Description (Millions) Income Statement Line Item 2015 2014 2015 2014 Foreign exchange contracts (a) Other expenses $ (19) $ 2 $ 15 $ 84 Cost of Card Member services 4 ― (2) 4 Total $ (15) $ 2 $ 13 $ 88 Foreign exchange contracts include forwards and embedded foreign currency derivatives . |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 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 September 30 , 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 3,946 302 3,644 ― 4,430 350 4,080 ― Derivatives (a) 922 ― 922 ― 991 ― 991 ― Total assets 4,869 303 4,566 ― 5,422 351 5,071 ― Liabilities: Derivatives (a) 218 ― 218 ― 164 ― 164 ― Total liabilities $ 218 $ ― $ 218 $ ― $ 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 value s 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 September 30 , 2015 and December 31, 2014 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30 , 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 estimated by aggregating t he 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 $ 20 $ 20 $ 19 $ 1 (a) $ ― Other financial assets (b) 48 48 ― 48 ― Financial assets carried at other than fair value Loans, net 69 69 (c) ― ― 69 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 62 62 ― 62 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 11 11 ― 11 ― Long-term debt $ 49 $ 50 (c) $ ― $ 50 $ ― 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 $ 5.9 billion and $ 7.0 billion held by a consolidated VIE as of September 30 , 2015 and December 31, 2014 , respectively), restricted cash and other miscellaneous assets. Includes fair values of Card Member loans of $ 27.2 billion and $ 29.9 billion, and long-term debt of $ 13.4 billion and $ 19.5 billion held by a consolidated VIE as of September 30 , 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 nine months ended September 30 , 2015 and during the year ended December 31, 2014 , the Compan y did not have any material assets that were measured at fair value due to impairment. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 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 September 30 , 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 $ 42 $ 37 $ 49 $ 44 Other (c) 6 8 57 67 Total $ 48 $ 45 $ 106 $ 111 Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed or indemnified parties . The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of maximum exposure , which is based on all eligi ble claims in relation to annual billed business volumes. Included in O ther liabilities on the Company’s Consolidated Balance Sheets. Primarily includes guarantees related to the Company’s p urchase protection, real estate and business dispositions . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30 , 2015 and 2014 were as follows: Three Months Ended September 30, 2015 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of June 30, 2015 $ 76 $ (1,743) $ (487) $ (2,154) Net unrealized loss (6) ― ― (6) Decrease due to amounts reclassified into earnings (1) ― ― (1) Net translation loss on investments in foreign operations ― (604) ― (604) Net gains related to hedges of investments in foreign operations ― 384 ― 384 Pension and other postretirement benefit gains ― ― 7 7 Net change in accumulated other comprehensive (loss) income (7) (220) 7 (220) Balances as of September 30, 2015 $ 69 $ (1,963) $ (480) $ (2,374) Nine Months Ended September 30, 2015 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2014 $ 96 $ (1,499) $ (516) $ (1,919) Net unrealized loss (26) ― ― (26) Decrease due to amounts reclassified into earnings (1) (1) ― (2) Net translation loss on investments in foreign operations ― (1,009) ― (1,009) Net gains related to hedges of investments in foreign operations ― 546 ― 546 Pension and other postretirement benefit gains ― ― 36 36 Net change in accumulated other comprehensive (loss) income (27) (464) 36 (455) Balances as of September 30, 2015 $ 69 $ (1,963) $ (480) $ (2,374) Three Months Ended September 30, 2014 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of June 30, 2014 $ 105 $ (1,118) $ (358) $ (1,371) Net unrealized gains 2 ― ― 2 (Decrease) increase due to amounts reclassified into earnings (13) 1 ― (12) Net translation loss on investments in foreign operations ― (414) ― (414) Net gains related to hedges of investments in foreign operations ― 246 ― 246 Pension and other postretirement benefit gains ― ― 7 7 Net change in accumulated other comprehensive (loss) income (11) (167) 7 (171) Balances as of September 30, 2014 $ 94 $ (1,285) $ (351) $ (1,542) Nine Months Ended September 30, 2014 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2013 $ 63 $ (1,090) $ (399) $ (1,426) Net unrealized gains 102 ― ― 102 (Decrease) increase due to amounts reclassified into earnings (71) 5 ― (66) Net translation loss on investments in foreign operations ― (313) ― (313) Net gains related to hedges of investments in foreign operations ― 113 ― 113 Pension and other postretirement benefit gains ― ― 48 48 Net change in accumulated other comprehensive income (loss) 31 (195) 48 (116) Balances as of September 30, 2014 $ 94 $ (1,285) $ (351) $ (1,542) The following table presents the effects of reclassifications out of Accumulated Other Comprehensive Loss and into the Consolidated Statements of Income Gains (losses) recognized in earnings Three Months Ended Nine Months Ended September 30, September 30, Income Statement Amount Amount Description ( Millions ) Line Item 2015 2014 2015 2014 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ 1 $ 21 $ 1 $ 111 Related income tax expense Income tax provision ― (8) ― (40) Reclassification to net income related to available-for-sale securities 1 13 1 71 Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related hedges Other expenses ― ― 1 (8) Related income tax benefit Income tax provision ― (1) ― 3 Reclassification of foreign currency translation adjustments ― (1) 1 (5) Total $ 1 $ 12 $ 2 $ 66 |
Non-Interest Revenue and Expens
Non-Interest Revenue and Expense Detail | 9 Months Ended |
Sep. 30, 2015 | |
Other Income And Other Expense Disclosure [Abstract] | |
Details of Certain Consolidated Statements of Income Lines | 13 . Non-Interest Revenue and Expense Detail The following is a deta il of Other commissions and fees : Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2015 2014 2015 2014 Foreign currency conversion fee revenue $ 213 $ 225 $ 646 $ 665 Delinquency fees 197 184 586 539 Loyalty coalition-related fees 101 100 280 286 Service fees 97 94 279 274 Other (a) 32 39 100 120 Total Other commissions and fees $ 640 $ 642 $ 1,891 $ 1,884 Other primarily includes revenues from fees related to Membership Rewards programs. The following is a detail of O ther revenues : Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2015 2014 2015 2014 Global Network Services partner revenues $ 156 $ 173 $ 474 $ 513 Net realized gains on investment securities 1 20 1 100 Other (a) 347 400 1,018 1,066 Total Other revenues $ 504 $ 593 $ 1,493 $ 1,679 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 expenses: Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2015 2014 2015 2014 Professional services $ 687 $ 731 $ 1,966 $ 2,240 Occupancy and equipment 523 432 1,372 1,361 Card and merchant-related fraud losses (a) 64 96 247 282 Communications 84 91 257 285 Gain on business travel joint venture transaction ― (15) ― (641) Other (b) 277 261 727 866 Total Other expenses $ 1,635 $ 1,596 $ 4,569 $ 4,393 Beginning January 1, 2015, merchant-related fraud l osses are reported within Other 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 set tlements, certain l oyalty coalition -related expenses and foreign currency-related gains and losses (including the favorable impact from the reassessment of the functional currenc y of certai n UK legal entities in the nine month s ended September 30, 2015). |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14 . Income Taxes The effective tax rate was 34.7 percent and 34.2 percent for the three and nine months ended September 30, 2015, respectively, and 34.2 percent and 34.4 percent for the three and nine months ended September 30, 2014, respectively. The tax rates for all periods reflect the level of pretax income in relation to recurring permanent tax benefits and geographic mix of business. 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 throug h 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 unreco gnized tax benefits could decrease within the next 12 months by as much as $ 431 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 ben efits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $ 431 million of unrecognized tax benefits, approximately $ 288 million relates to amounts that if recognized wo uld be recorded in 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) | 9 Months Ended |
Sep. 30, 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 were as follows : Three Months Ended Nine Months Ended September 30, September 30, (Millions, except per share amounts) 2015 2014 2015 2014 Numerator: Basic and diluted: Net income $ 1,266 $ 1,477 $ 4,264 $ 4,438 Preferred dividends (22) ― (42) ― Net income available to common shareholders 1,244 1,477 4,222 4,438 Earnings allocated to participating share awards (a) (10) (11) (32) (35) Net income attributable to common shareholders $ 1,234 $ 1,466 $ 4,190 $ 4,403 Denominator: (a) Basic: Weighted-average common stock 994 1,041 1,007 1,051 Add: Weighted-average stock options (b) 3 6 4 6 Diluted 997 1,047 1,011 1,057 Basic EPS $ 1.24 $ 1.41 $ 4.16 $ 4.19 Diluted EPS $ 1.24 $ 1.40 $ 4.15 $ 4.17 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 attributa ble to participating securities. The related participating securities are similarly excluded from the denominator. The dilutive effect of unexe rcised stock options excludes from the computation of EPS 0.6 million and 0.2 million of options for the three months ended September 30 , 2015 and 2014 , respectively, and 0.5 million and 0.2 million of options for the nine months ended September 30 , 2015 and 2014 , respectively, because inclusion of the options would have been anti-dilutive. For the three and nine months ended September 30 , 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 authori zed to permit the Company to issue up to 20 million Preferred Shares at a par value of $1.66 2/3 without further shareholder approval. The Company has the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstandi ng as of September 3 0 , 2015: Series B Series C Issuance date November 10, 2014 March 2, 2015 Securities issued 750 Preferred Shares; represented by 750,000 depositary shares 850 Preferred Shares; represented by 850,000 depositary shares Aggregate liquidation preference $750 million $850 million Fixed dividend rate per annum 5.20% 4.90% Semi-annual fixed dividend payment dates Beginning May 15, 2015 Beginning September 15, 2015 Floating dividend rate per annum 3 month LIBOR+ 3.428% 3 month LIBOR+ 3.285% Quarterly floating dividend payment dates Beginning February 15, 2020 Beginning June 15, 2020 Fixed to floating rate conversion date (a) November 15, 2019 March 15, 2020 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 | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | 16 . Reportable Operating Segments The Company is a global services 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 business , as well as other Company operations are included in Corporate & Other. The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other : Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2015 2014 2015 2014 Non-interest revenues: USCS $ 3,302 $ 3,188 $ 9,822 $ 9,375 ICS 1,071 1,206 3,214 3,571 GCS 858 957 2,653 3,538 GNMS 1,302 1,368 3,898 4,027 Corporate & Other, including adjustments and eliminations (a) 155 189 465 548 Total $ 6,688 $ 6,908 $ 20,052 $ 21,059 Interest income: USCS $ 1,593 $ 1,465 $ 4,639 $ 4,296 ICS 226 273 706 825 GCS 3 4 10 11 GNMS 26 14 69 35 Corporate & Other, including adjustments and eliminations (a) 56 59 174 183 Total $ 1,904 $ 1,815 $ 5,598 $ 5,350 Interest expense: USCS $ 166 $ 152 $ 481 $ 455 ICS 59 85 183 259 GCS 44 61 138 186 GNMS (42) (68) (143) (208) Corporate & Other, including adjustments and eliminations (a) 172 190 564 610 Total $ 399 $ 420 $ 1,223 $ 1,302 Total revenues net of interest expense: USCS $ 4,729 $ 4,501 $ 13,980 $ 13,216 ICS 1,238 1,394 3,737 4,137 GCS 817 900 2,525 3,363 GNMS 1,370 1,450 4,110 4,270 Corporate & Other, including adjustments and eliminations (a) 39 58 75 121 Total $ 8,193 $ 8,303 $ 24,427 $ 25,107 Net income (loss): USCS $ 794 $ 889 $ 2,614 $ 2,535 ICS 89 142 348 378 GCS 151 204 534 949 GNMS 462 427 1,354 1,243 Corporate & Other, including adjustments and eliminations (a) (230) (185) (586) (667) Total $ 1,266 $ 1,477 $ 4,264 $ 4,438 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Policy (Text Block) [Abstract] | |
Card Member and Other Receivables and Loans | T he 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 R eceivables Impaired loans and receivables are individual larger balance or homoge neous 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 pro spective basis the Company continue s to classify Card Member accounts that have exited a modification program as a Troubled Debt Restructurin g (TDR), with such accounts identified as “Out of Program TDRs.” |
Reserves for losses | Reserves for losses relating to Card Member receivables and loans 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 that 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 Loss , 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 doe s 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 a nd 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. |
Commitments and contingencies | The Company has recorded reserves for certain of its outstanding legal proceedings. A reserve is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated r ange 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 a n integral component of the Company’s market risk management. The Company does not transact in derivatives for trading purposes. Der ivative Financial Instruments that Qualify for Hedge Accounting Refer to Note 12 on pages 89 – 90 of the Annual Report for information on derivatives that qualify for hedge accounting. |
Fair Values | 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 nine months ended September 30 , 2015 and during the year ended December 31, 2014 , the Compan y did not have any material assets that were measured at fair value due to impairment. |
Accounts Receivable and Loans (
Accounts Receivable and Loans (Tables) | 9 Months Ended | |
Sep. 30, 2015 | ||
Accounts Receivable and Loans (Tables) [Abstract] | ||
Card Member receivables segment detail | Accounts receivable by segment as of September 30 , 2015 and December 31, 2014 , consisted of : (Millions) 2015 2014 U.S. Card Services (a) $ 21,965 $ 22,468 International Card Services 6,511 7,653 Global Commercial Services (b) 15,748 14,583 Global Network & Merchant Services (c) 107 147 Card Member receivables (d) 44,331 44,851 Less: Reserve for losses 441 465 Card Member receivables, net $ 43,890 $ 44,386 Other receivables, net (e) $ 2,517 $ 2,614 Includes $ 6.0 b illion and $ 7.0 billion of gross Card Member receivables available to settle obligations of a consolidated variable interest entity (VIE) as of September 30 , 2015 and December 31, 2014 , respectively. Includes $ 327 m illion and $ 636 million due from airlines, of which Delta Air Lines comprises $ 265 million and $ 606 million as of September 30 , 2015 and December 31, 2014 , respectively. Includes receivables primarily related to the Company’ s International Currency Card portfolios. Includes approximately $ 12.3 billion and $ 13.3 billion of Card Member receivables outside the U.S. as of September 30 , 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 $ 61 million as of both September 30 , 2015 and December 31, 2014 . | |
Card Member loans segment detail | Loans by segment as of September 30 , 2015 and December 31, 2014 , consisted of: (Millions) 2015 2014 U.S. Card Services (a) $ 62,133 $ 62,592 International Card Services 6,710 7,744 Global Commercial Services 52 49 Card Member loans 68,895 70,385 Less: Reserve for losses 1,164 1,201 Card Member loans, net $ 67,731 $ 69,184 Other loans, net (b) $ 1,054 $ 920 Includes approximately $ 27.3 billion and $ 30.1 billion of gross Card Member loans available to settle obligations o f a consolidated VIE as of September 30 , 2015 and December 31, 2014 , respectively. Other loans primarily represent loans to merchants . Other loans are presented net of reserves for losses of $ 18 million and $ 12 million as of September 30 , 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 September 30 , 2015 and D ecember 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 $ 61,530 $ 191 $ 131 $ 281 $ 62,133 International Card Services 6,604 35 22 49 6,710 Card Member Receivables: U.S. Card Services $ 21,612 $ 133 $ 73 $ 147 $ 21,965 International Card Services 6,412 29 22 48 6,511 Global Commercial Services (a) (b) (b) (b) 112 15,748 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 sho wn 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 ar e 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 | Credit Quality Indicators for Card Member Loans and Receivables The following tables present the key credit qual ity indicators as of or for the nine months ended September 30 : 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 1.4 % 1.6 % 1.0 % 1.6 % 1.8 % 1.0 % International Card Services 2.0 % 2.4 % 1.6 % 2.0 % 2.4 % 1.6 % Card Member Receivables: U.S. Card Services 1.8 % 2.0 % 1.6 % 1.7 % 1.9 % 1.6 % International Card Services 2.1 % 2.2 % 1.5 % 2.0 % 2.1 % 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 0.09 % 0.7 % 0.09 % 0.8 % 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 f ees is also presented. The nine months ended September 30 , 2015, reflects the impact of a change in the timing of charge-offs for Card Member loans and receivables in ce rtain modification programs from 180 days past due to 120 days past due , which was fully recognized during the three months ended March 31, 2015 . | |
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 September 30 , 2015 and December 31, 2014 : As of September 30, 2015 Over 90 days Accounts Classified as a TDR (c) Past Due & Total Unpaid Accruing Non- Out of Impaired Principal Allowance (Millions) Interest (a) Accruals (b) In Program (d) Program (e) Balance Balance for TDRs Card Member Loans: U.S. Card Services $ 192 $ 175 $ 224 $ 109 $ 700 $ 649 $ 66 International Card Services 49 ― ― ― 49 49 ― Card Member Receivables: U.S. Card Services ― ― 26 4 30 30 18 Total $ 241 $ 175 $ 250 $ 113 $ 779 $ 728 $ 84 As of December 31, 2014 Over 90 days Past Due & Total Unpaid Accruing Non- In Program Impaired Principal Allowance (Millions) Interest (a) Accruals (b) TDRs (c)(d) 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 (generally 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 . Accou nts classified as a TDR include $ 19 million and $ 26 million that are over 90 days past due and accruing interest and $ 25 million and $ 34 millio n that are non-accrual as of September 30 , 2015 and December 31, 2014 , respectively . In Program TDRs include Card Member accounts that are currentl y enroll ed in a modification program. Out of Pro gram TDRs include $82 million of Card Member accounts that have successfully complete d a modification program and $31 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 are not significant for GCS) and the average balance s of impaired Card Member r eceivables (which are not significant for ICS and GCS) for the three and nine months ended September 30 : Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Average Interest Income Average Interest Income 2015 (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Card Services $ 693 $ 16 $ 685 $ 43 International Card Services 53 3 55 10 Card Member Receivables: U.S. Card Services 28 ― 35 ― Total $ 774 $ 19 $ 775 $ 53 Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Average Interest Income Average Interest Income 2014 (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Card Services $ 675 $ 12 $ 734 $ 37 International Card Services 63 4 63 12 Card Member Receivables: U.S. Card Services 44 ― 47 ― Total $ 782 $ 16 $ 844 $ 49 | |
Troubled debt restructurings | The following table provides additional information with respect to the USCS Card Member loans and receivables modified as TDRs for the three and nine months ended September 30 , 2015 and 2014 . The ICS Card Member loans and receivables modifications were not significant and the Company does not offer modification programs for its GCS Card Member receivables; therefore, these segments are not included in the following TDR disclosures. Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Average Average Average Payment Average Payment Number of Outstanding Interest Rate Term Number of Outstanding Interest Rate Term Accounts Balances (a) Reduction Extension Accounts Balances (a) Reduction Extension (thousands) (millions) (% Points) (Months) (thousands) (millions) (% Points) (Months) Troubled Debt Restructurings: Card Member Loans 10 $ 69 9 (b) 31 $ 218 10 (b) Card Member Receivables 3 37 (c) 12 9 111 (c) 12 Total 13 $ 106 40 $ 329 Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Average Average Average Payment Average Payment Number of Outstanding Interest Rate Term Number of Outstanding Interest Rate Term Accounts Balances (a) Reduction Extension Accounts Balances (a) Reduction Extension (thousands) (millions) (% Points) (Months) (thousands) (millions) (% Points) (Months) Troubled Debt Restructurings: Card Member Loans 11 $ 83 9 (b) 35 $ 261 11 (b) Card Member Receivables 4 41 (c) 12 11 129 (c) 12 Total 15 $ 124 46 $ 390 Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans , and principal and fees on Card Member receivables. Modifications did not reduce the principal balance. 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 and nine months ended September 30 , 2015 and 2014 , with respect to the USCS Card Member loans and receivables modified as TDRs that subsequently defaulted w ithin 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 receivabl es. Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Outstanding Outstanding Number of Balances Number of Balances Accounts Upon Default Accounts Upon Default (thousands) (millions) (a) (thousands) (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 1 $ 14 6 $ 39 Card Member Receivables 1 1 3 3 Total 2 $ 15 9 $ 42 Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Outstanding Outstanding Number of Balances Number of Balances Accounts Upon Default Accounts Upon Default (thousands) (millions) (a)(b) (thousands) (millions) (a)(b) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 2 $ 12 6 $ 40 Card Member Receivables 1 2 2 9 Total 3 $ 14 8 $ 49 | [1] |
[1] | The outstanding balances upon default include principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. The outstanding balances upon default have been revised to reflect the exclusion of written off accounts, which are not material. |
Reserves For Losses (Tables)
Reserves For Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reserves For Losses Tables [Abstract] | |
Changes in the Card Member receivables reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the nine months ended September 30 : (Millions) 2015 2014 Balance, January 1 $ 465 $ 386 Provisions (a) 542 594 Net write-offs (b) (544) (527) Other (c) (22) (21) Balance, September 30 $ 441 $ 432 P rovisions for principal and fee reserve components. Consists of principal and fee components, less recoveries of $ 302 million and $ 269 million, including net write-offs from TDRs of $ 49 million and $ 14 million, for the nine months ended September 30 , 2015 and 2014 , respectively. For the nine months ended September 30 , 2015 , includes foreign currency translation adjustments of $(13) million, and other adjustments of $(9 ) million. For the nine months ended September 30 , 2014 , includes foreign currency translation adjustment s of $(6) million, other adjustments of $(8 ) million , and an adjustment related to reserves for card-related fraud losses of $(7) million , which were re classified to O ther liabilities in the first quarter of 2014. |
Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and collectively for impair ment , and related reserves , as of September 30 , 2015 and December 31, 2014 : (Millions) 2015 2014 Card Member receivables evaluated individually for impairment (a) $ 30 $ 48 Related reserves (a) $ 18 $ 35 Card Member receivables evaluated collectively for impairment $ 44,301 $ 44,803 Related reserves (b) $ 423 $ 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 nine months ended September 30 : (Millions) 2015 2014 Balance, January 1 $ 1,201 $ 1,261 Provisions (a) 829 797 Net write-offs Principal (b) (733) (786) Interest and fees (b) (122) (124) Other (c) (11) (2) Balance, September 30 $ 1,164 $ 1,146 P rovisions for principal , interest and fee reserve components. Consists of principal write-offs, less recoveries of $ 320 million and $ 324 million , including net write-offs/(recoveries) from TDRs of $ 30 million and $ (5) million , for the nine months ended September 30 , 2015 and 2014 , respectively. Recoveries of interest and fees were de minimis . For the nine months ended September 30 , 2015 , includes foreign currency translation adjustments of $(18) million, and other adjustments of $7 million. For the nine months ended September 30 , 2014 , includes foreign currency translation adjustments of $(7) million, other adjustments of $11 million, and an adjustment related to reserves for card-related fraud losses of $ (6) million, which were reclassified to O ther liabilities in the first quarter of 2014. |
Card Member loans and related reserves evaluated separately and collectively for impairment | The following table presents Card Member loans evaluated individually and collectively for im pairment , and related reserves , as of September 30 , 2015 and December 31, 2014 : (Millions) 2015 2014 Card Member loans evaluated individually for impairment (a) $ 333 $ 286 Related reserves (a) $ 66 $ 67 Card Member loans evaluated collectively for impairment (b) $ 68,562 $ 70,099 Related reserves (b) $ 1,098 $ 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 r eserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investment Securities (Tables) [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of September 30 , 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 $ 2,971 $ 97 $ (4) $ 3,064 $ 3,366 $ 129 $ (2) $ 3,493 U.S. Government agency obligations 2 ― ― 2 3 ― ― 3 U.S. Government treasury obligations 297 5 ― 302 346 4 ― 350 Corporate debt securities 30 1 ― 31 37 3 ― 40 Mortgage-backed securities (a) 109 5 ― 114 128 8 ― 136 Equity securities ― 1 ― 1 ― 1 ― 1 Foreign government bonds and obligations 379 6 (1) 384 350 9 ― 359 Other (b) 50 ― (1) 49 50 ― (1) 49 Total $ 3,838 $ 115 $ (6) $ 3,947 $ 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 September 30 , 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 $ 59 $ (2) $ 13 $ (2) $ ― $ ― $ 72 $ (2) Foreign government bonds and obligations 31 (1) ― ― ― ― ― ― Other ― ― 33 (1) ― ― 33 (1) Total $ 90 $ (3) $ 46 $ (3) $ ― $ ― $ 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 September 30 , 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 ($ in Millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2015: 90%–100% 35 $ 88 $ (3) 12 $ 37 $ (2) 47 $ 125 $ (5) Less than 90% ― ― ― 2 9 (1) 2 9 (1) Total as of September 30, 2015 35 $ 88 $ (3) 14 $ 46 $ (3) 49 $ 134 $ (6) 2014: 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 September 30 , 2015 , were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 459 $ 459 Due after 1 year but within 5 years 324 331 Due after 5 years but within 10 years 259 275 Due after 10 years 2,746 2,832 Total (a) $ 3,788 $ 3,897 Balances primarily represent investments in state and municipal obligations, and foreign government bonds and obligations. |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 9 Months Ended |
Sep. 30, 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, and collectively, the Trusts ) as of September 30 , 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 747 62 Total $ 748 $ 64 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Customer Deposits (Tables) [Abstract] | |
Deposits By Component Alternative | As of September 30 , 2015 and December 31, 2014 , customer deposits we re categorized as interest bearing or non-interest bearing , as follows : (Millions) 2015 2014 U.S.: Interest bearing $ 48,513 $ 43,279 Non-interest bearing (includes Card Member credit balances of: 2015, $312; 2014, $372) 356 418 Non-U.S.: Interest bearing 106 115 Non-interest bearing (includes Card Member credit balances of: 2015, $314; 2014, $347) 326 359 Total customer deposits $ 49,301 $ 44,171 |
Deposits By Type | C ustomer deposits by deposit type as of September 30 , 2015 and December 31, 2014 , were as follows : (Millions) 2015 2014 U.S. retail deposits: Savings accounts – Direct $ 28,229 $ 26,159 Certificates of deposit: Direct 291 333 Third-party 11,053 7,838 Sweep accounts – Third-party 8,940 8,949 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 162 173 Card Member credit balances ― U.S. and non-U.S. 626 719 Total customer deposits $ 49,301 $ 44,171 |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of September 30 , 2015 , we re as follows: (Millions) U.S. Non-U.S. Total 2015 $ 398 $ 18 $ 416 2016 2,411 5 2,416 2017 2,730 ― 2,730 2018 2,527 ― 2,527 2019 1,846 ― 1,846 After 5 years 1,432 ― 1,432 Total $ 11,344 $ 23 $ 11,367 |
Time Deposits $250,000 Or More | As of September 30 , 2015 and December 31, 2014 , certificates of deposit in denominations of $25 0,000 or more , in the aggregate , were as follows: (Millions) 2015 2014 U.S. $ 106 $ 111 Non-U.S. 17 17 Total $ 123 $ 128 |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivatives and Hedging Activities (Tables) [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following t able summarizes the total fair value, excluding interest acc ruals, of derivative assets and l iabilities as of September 30 , 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 $ 391 $ 314 $ ― $ 4 Foreign exchange contracts Net investment hedges 385 492 102 46 Total derivatives designated as hedging instruments 776 806 102 50 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (a) 146 185 116 114 Total derivatives, gross 922 991 218 164 Less: Cash collateral netting (b) (307) (158) ― (4) Derivative asset and derivative liability netting (c) (130) (122) (130) (122) Total derivatives, net (d) $ 485 $ 711 $ 88 $ 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. From time to time, the Company also receives non-cash collateral from counterparties in the form of security interests in U.S. Treasury secur ities, which reduces the Company’s risk exposure, but does not reduce the net exposure on the Company’s Consolidated Balance Sheets. The Company had such non-cash collateral as of December 31, 2014 with a fair value of $ 91 million, none of which was sold or repledged . The Company did not have any such non-cash collateral as of September 30, 2015. Additionally, the Company posted $ 155 million and $ 114 million as of September 30, 2015 and December 31, 2014, respectively, as initial marg in 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 counterpa rty. The total net derivative assets and derivative liabilities are presented within O ther assets and O ther 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 and nine months ended September 30 : Three Months Ended September 30: (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 $ 108 $ (109) Other expenses $ (114) $ 112 $ (6) $ 3 Nine Months Ended September 30: (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 $ 82 $ (170) Other expenses $ (85) $ 176 $ (3) $ 6 Total return contract Other non-interest revenues ― 11 Other non-interest revenues ― (11) ― ― |
Derivative instruments gain loss recognized in income | The f ollowing table summarizes the impact on the Consolidated Statements of Income associated with the Company’s derivatives n ot designated as hedges : Pretax (losses) gains Three Months Ended Nine Months Ended September 30, September 30, Amount Amount Description (Millions) Income Statement Line Item 2015 2014 2015 2014 Foreign exchange contracts (a) Other expenses $ (19) $ 2 $ 15 $ 84 Cost of Card Member services 4 ― (2) 4 Total $ (15) $ 2 $ 13 $ 88 Foreign exchange contracts include forwards and embedded foreign currency derivatives . |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 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 September 30 , 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 3,946 302 3,644 ― 4,430 350 4,080 ― Derivatives (a) 922 ― 922 ― 991 ― 991 ― Total assets 4,869 303 4,566 ― 5,422 351 5,071 ― Liabilities: Derivatives (a) 218 ― 218 ― 164 ― 164 ― Total liabilities $ 218 $ ― $ 218 $ ― $ 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 value s 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 September 30 , 2015 and December 31, 2014 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30 , 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 estimated by aggregating t he 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 $ 20 $ 20 $ 19 $ 1 (a) $ ― Other financial assets (b) 48 48 ― 48 ― Financial assets carried at other than fair value Loans, net 69 69 (c) ― ― 69 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 62 62 ― 62 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 11 11 ― 11 ― Long-term debt $ 49 $ 50 (c) $ ― $ 50 $ ― 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 $ 5.9 billion and $ 7.0 billion held by a consolidated VIE as of September 30 , 2015 and December 31, 2014 , respectively), restricted cash and other miscellaneous assets. Includes fair values of Card Member loans of $ 27.2 billion and $ 29.9 billion, and long-term debt of $ 13.4 billion and $ 19.5 billion held by a consolidated VIE as of September 30 , 2015 and December 31, 2014 , respectively. Presented as a component of customer deposits on the Consolidated Balance Sheets. |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees (Tables) [Abstract] | |
Information related to guarantees | The following table provides information related to such guarantees and indemnifications as of September 30 , 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 $ 42 $ 37 $ 49 $ 44 Other (c) 6 8 57 67 Total $ 48 $ 45 $ 106 $ 111 Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed or indemnified parties . The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of maximum exposure , which is based on all eligi ble claims in relation to annual billed business volumes. Included in O ther liabilities on the Company’s Consolidated Balance Sheets. Primarily includes guarantees related to the Company’s p urchase protection, real estate and business dispositions . |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Components of Comprehensive Income, net of tax [Abstract] | |
Components of comprehensive income (loss), net of tax | 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 and nine months ended September 30 , 2015 and 2014 were as follows: Three Months Ended September 30, 2015 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of June 30, 2015 $ 76 $ (1,743) $ (487) $ (2,154) Net unrealized loss (6) ― ― (6) Decrease due to amounts reclassified into earnings (1) ― ― (1) Net translation loss on investments in foreign operations ― (604) ― (604) Net gains related to hedges of investments in foreign operations ― 384 ― 384 Pension and other postretirement benefit gains ― ― 7 7 Net change in accumulated other comprehensive (loss) income (7) (220) 7 (220) Balances as of September 30, 2015 $ 69 $ (1,963) $ (480) $ (2,374) Nine Months Ended September 30, 2015 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2014 $ 96 $ (1,499) $ (516) $ (1,919) Net unrealized loss (26) ― ― (26) Decrease due to amounts reclassified into earnings (1) (1) ― (2) Net translation loss on investments in foreign operations ― (1,009) ― (1,009) Net gains related to hedges of investments in foreign operations ― 546 ― 546 Pension and other postretirement benefit gains ― ― 36 36 Net change in accumulated other comprehensive (loss) income (27) (464) 36 (455) Balances as of September 30, 2015 $ 69 $ (1,963) $ (480) $ (2,374) Three Months Ended September 30, 2014 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of June 30, 2014 $ 105 $ (1,118) $ (358) $ (1,371) Net unrealized gains 2 ― ― 2 (Decrease) increase due to amounts reclassified into earnings (13) 1 ― (12) Net translation loss on investments in foreign operations ― (414) ― (414) Net gains related to hedges of investments in foreign operations ― 246 ― 246 Pension and other postretirement benefit gains ― ― 7 7 Net change in accumulated other comprehensive (loss) income (11) (167) 7 (171) Balances as of September 30, 2014 $ 94 $ (1,285) $ (351) $ (1,542) Nine Months Ended September 30, 2014 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2013 $ 63 $ (1,090) $ (399) $ (1,426) Net unrealized gains 102 ― ― 102 (Decrease) increase due to amounts reclassified into earnings (71) 5 ― (66) Net translation loss on investments in foreign operations ― (313) ― (313) Net gains related to hedges of investments in foreign operations ― 113 ― 113 Pension and other postretirement benefit gains ― ― 48 48 Net change in accumulated other comprehensive income (loss) 31 (195) 48 (116) Balances as of September 30, 2014 $ 94 $ (1,285) $ (351) $ (1,542) |
Reclassification out of accumulated other comprehensive (loss) income | The following table presents the effects of reclassifications out of Accumulated Other Comprehensive Loss and into the Consolidated Statements of Income Gains (losses) recognized in earnings Three Months Ended Nine Months Ended September 30, September 30, Income Statement Amount Amount Description ( Millions ) Line Item 2015 2014 2015 2014 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ 1 $ 21 $ 1 $ 111 Related income tax expense Income tax provision ― (8) ― (40) Reclassification to net income related to available-for-sale securities 1 13 1 71 Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related hedges Other expenses ― ― 1 (8) Related income tax benefit Income tax provision ― (1) ― 3 Reclassification of foreign currency translation adjustments ― (1) 1 (5) Total $ 1 $ 12 $ 2 $ 66 |
Non-Interest Revenue and Expe36
Non-Interest Revenue and Expense Detail (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Cost And Expense Disclosure Operating (Tables) [Abstract] | |
Details of other commissions and fees | The following is a deta il of Other commissions and fees : Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2015 2014 2015 2014 Foreign currency conversion fee revenue $ 213 $ 225 $ 646 $ 665 Delinquency fees 197 184 586 539 Loyalty coalition-related fees 101 100 280 286 Service fees 97 94 279 274 Other (a) 32 39 100 120 Total Other commissions and fees $ 640 $ 642 $ 1,891 $ 1,884 Other primarily includes revenues from fees related to Membership Rewards programs. |
Details of other revenues | The following is a detail of O ther revenues : Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2015 2014 2015 2014 Global Network Services partner revenues $ 156 $ 173 $ 474 $ 513 Net realized gains on investment securities 1 20 1 100 Other (a) 347 400 1,018 1,066 Total Other revenues $ 504 $ 593 $ 1,493 $ 1,679 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 expenses: Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2015 2014 2015 2014 Professional services $ 687 $ 731 $ 1,966 $ 2,240 Occupancy and equipment 523 432 1,372 1,361 Card and merchant-related fraud losses (a) 64 96 247 282 Communications 84 91 257 285 Gain on business travel joint venture transaction ― (15) ― (641) Other (b) 277 261 727 866 Total Other expenses $ 1,635 $ 1,596 $ 4,569 $ 4,393 Beginning January 1, 2015, merchant-related fraud l osses are reported within Other 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 set tlements, certain l oyalty coalition -related expenses and foreign currency-related gains and losses (including the favorable impact from the reassessment of the functional currenc y of certai n UK legal entities in the nine month s ended September 30, 2015). |
Earnings Per Common Share (EP37
Earnings Per Common Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation of basic and diluted EPS | EPS The computations of basic and diluted EPS were as follows : Three Months Ended Nine Months Ended September 30, September 30, (Millions, except per share amounts) 2015 2014 2015 2014 Numerator: Basic and diluted: Net income $ 1,266 $ 1,477 $ 4,264 $ 4,438 Preferred dividends (22) ― (42) ― Net income available to common shareholders 1,244 1,477 4,222 4,438 Earnings allocated to participating share awards (a) (10) (11) (32) (35) Net income attributable to common shareholders $ 1,234 $ 1,466 $ 4,190 $ 4,403 Denominator: (a) Basic: Weighted-average common stock 994 1,041 1,007 1,051 Add: Weighted-average stock options (b) 3 6 4 6 Diluted 997 1,047 1,011 1,057 Basic EPS $ 1.24 $ 1.41 $ 4.16 $ 4.19 Diluted EPS $ 1.24 $ 1.40 $ 4.15 $ 4.17 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 attributa ble to participating securities. The related participating securities are similarly excluded from the denominator. The dilutive effect of unexe rcised stock options excludes from the computation of EPS 0.6 million and 0.2 million of options for the three months ended September 30 , 2015 and 2014 , respectively, and 0.5 million and 0.2 million of options for the nine months ended September 30 , 2015 and 2014 , respectively, because inclusion of the options would have been anti-dilutive. |
Perpetual Fixed Floating Rate Non Cumulative Preferred Shares | The Company has the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstandi ng as of September 3 0 , 2015: Series B Series C Issuance date November 10, 2014 March 2, 2015 Securities issued 750 Preferred Shares; represented by 750,000 depositary shares 850 Preferred Shares; represented by 850,000 depositary shares Aggregate liquidation preference $750 million $850 million Fixed dividend rate per annum 5.20% 4.90% Semi-annual fixed dividend payment dates Beginning May 15, 2015 Beginning September 15, 2015 Floating dividend rate per annum 3 month LIBOR+ 3.428% 3 month LIBOR+ 3.285% Quarterly floating dividend payment dates Beginning February 15, 2020 Beginning June 15, 2020 Fixed to floating rate conversion date (a) November 15, 2019 March 15, 2020 The date on which dividends convert from a fixed rate calculation to a floating rate calculation. |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Operating segment information | The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other : Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2015 2014 2015 2014 Non-interest revenues: USCS $ 3,302 $ 3,188 $ 9,822 $ 9,375 ICS 1,071 1,206 3,214 3,571 GCS 858 957 2,653 3,538 GNMS 1,302 1,368 3,898 4,027 Corporate & Other, including adjustments and eliminations (a) 155 189 465 548 Total $ 6,688 $ 6,908 $ 20,052 $ 21,059 Interest income: USCS $ 1,593 $ 1,465 $ 4,639 $ 4,296 ICS 226 273 706 825 GCS 3 4 10 11 GNMS 26 14 69 35 Corporate & Other, including adjustments and eliminations (a) 56 59 174 183 Total $ 1,904 $ 1,815 $ 5,598 $ 5,350 Interest expense: USCS $ 166 $ 152 $ 481 $ 455 ICS 59 85 183 259 GCS 44 61 138 186 GNMS (42) (68) (143) (208) Corporate & Other, including adjustments and eliminations (a) 172 190 564 610 Total $ 399 $ 420 $ 1,223 $ 1,302 Total revenues net of interest expense: USCS $ 4,729 $ 4,501 $ 13,980 $ 13,216 ICS 1,238 1,394 3,737 4,137 GCS 817 900 2,525 3,363 GNMS 1,370 1,450 4,110 4,270 Corporate & Other, including adjustments and eliminations (a) 39 58 75 121 Total $ 8,193 $ 8,303 $ 24,427 $ 25,107 Net income (loss): USCS $ 794 $ 889 $ 2,614 $ 2,535 ICS 89 142 348 378 GCS 151 204 534 949 GNMS 462 427 1,354 1,243 Corporate & Other, including adjustments and eliminations (a) (230) (185) (586) (667) Total $ 1,266 $ 1,477 $ 4,264 $ 4,438 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Basis of Presentation (Details
Basis of Presentation (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investments in Affordable Housing Projects [Abstract] | |||||
Loss from Affordable Housing Projects, Equity Method Investments | $ 14 | $ 7 | $ 34 | $ 39 | |
Affordable Housing Tax Credit And Other Tax Benefits, Amount | 15 | $ 12 | 39 | $ 30 | |
Qualified Affordable Housing Project, Investments | 605 | 605 | $ 522 | ||
Qualified Affordable Housing Project Investments, Commitment | $ 134 | $ 134 | |||
Affordable Housing Tax Credits Commitment, Year to be Paid | between 2015 and 2023 |
Accounts Receivable and Loans40
Accounts Receivable and Loans (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Accounts receivable segment information | ||||
Card Member receivables | $ 44,331 | $ 44,851 | ||
Less: Reserve for losses | 441 | 465 | $ 432 | $ 386 |
Card Member receivables, net | 43,890 | 44,386 | ||
Other receivables, net | 2,517 | 2,614 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 61 | 61 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 5,959 | 7,025 | ||
Non United States [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 12,300 | 13,300 | ||
U S Card Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 21,965 | 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 | 6,000 | 7,000 | ||
International Card Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 6,511 | 7,653 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 15,748 | 14,583 | ||
Global Commercial Services [Member] | Airline [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 327 | 636 | ||
Global Commercial Services [Member] | Airline [Member] | Delta [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 265 | 606 | ||
Global Network And Merchant Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 107 | $ 147 |
Accounts Receivable and Loans41
Accounts Receivable and Loans (Details 1) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Loans segment information | ||||
Card Member loans, gross | $ 68,895 | $ 70,385 | ||
Less: Reserve for losses | 1,164 | 1,201 | $ 1,146 | $ 1,261 |
Card Member loans, net | 67,731 | 69,184 | ||
Other loans, net | 1,054 | 920 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 18 | 12 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 27,284 | 30,115 | ||
U S Card Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 62,133 | 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 | 27,300 | 30,100 | ||
International Card Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 6,710 | 7,744 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | $ 52 | $ 49 |
Accounts Receivable and Loans42
Accounts Receivable and Loans (Details 2) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
U S Card Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | $ 61,530 | $ 61,995 |
30 to 59 days past due | 191 | 179 |
60 to 89 days past due | 131 | 128 |
90+ days past due | 281 | 290 |
Total aging | 62,133 | 62,592 |
U S Card Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 21,612 | 22,096 |
30 to 59 days past due | 133 | 129 |
60 to 89 days past due | 73 | 72 |
90+ days past due | 147 | 171 |
Total aging | 21,965 | 22,468 |
International Card Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 6,604 | 7,621 |
30 to 59 days past due | 35 | 39 |
60 to 89 days past due | 22 | 27 |
90+ days past due | 49 | 57 |
Total aging | 6,710 | 7,744 |
International Card Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 6,412 | 7,557 |
30 to 59 days past due | 29 | 29 |
60 to 89 days past due | 22 | 20 |
90+ days past due | 48 | 47 |
Total aging | 6,511 | 7,653 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
90+ days past due | 112 | 120 |
Total aging | $ 15,748 | $ 14,583 |
Accounts Receivable and Loans43
Accounts Receivable and Loans (Details 3) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
U S Card Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.40% | 1.60% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.60% | 1.80% |
30 Days Past Due as a % of Total | 1.00% | 1.00% |
U S Card Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.80% | 1.70% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.00% | 1.90% |
30 Days Past Due as a % of Total | 1.60% | 1.60% |
International Card Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.00% | 2.00% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.40% | 2.40% |
30 Days Past Due as a % of Total | 1.60% | 1.60% |
International Card Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.10% | 2.00% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.20% | 2.10% |
30 Days Past Due as a % of Total | 1.50% | 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 | 0.09% | 0.09% |
90 days past billing as a percentage of receivables | 0.70% | 0.80% |
Accounts Receivable and Loans44
Accounts Receivable and Loans (Details 4) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $ 241 | $ 218 |
Non-accrual loans | 175 | 241 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 250 | 334 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 113 | |
Total impaired loans and receivables | 779 | 793 |
Unpaid principal balance | 728 | 750 |
Related allowance for Troubled Debt Restructurings | 84 | 102 |
Accounts Receivable and Loans Textuals [Abstract] | ||
Total loans and receivables modified as a TDR, non-accrual | 25 | 34 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 19 | 26 |
Financing Receivable, Modifications, Out of Program - success, Recorded Investment | 82 | |
Financing Receivable, Modifications, Out of Program - not compliant, Recorded Investment | 31 | |
U S Card Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 192 | 161 |
Non-accrual loans | 175 | 241 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 224 | 286 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 109 | |
Total impaired loans and receivables | 700 | 688 |
Unpaid principal balance | 649 | 646 |
Related allowance for Troubled Debt Restructurings | 66 | 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 | 26 | 48 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 4 | |
Total impaired loans and receivables | 30 | 48 |
Unpaid principal balance | 30 | 48 |
Related allowance for Troubled Debt Restructurings | 18 | 35 |
International Card Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 49 | 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 | 49 | 57 |
Unpaid principal balance | 49 | 56 |
Related allowance for Troubled Debt Restructurings | $ 0 | $ 0 |
Accounts Receivable and Loans45
Accounts Receivable and Loans (Details 5) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | $ 774 | $ 782 | $ 775 | $ 844 |
Interest income recognized | 19 | 16 | 53 | 49 |
U S Card Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 693 | 675 | 685 | 734 |
Interest income recognized | 16 | 12 | 43 | 37 |
U S Card Services [Member] | Card Member Receivables [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 28 | 44 | 35 | 47 |
Interest income recognized | 0 | 0 | 0 | 0 |
International Card Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 53 | 63 | 55 | 63 |
Interest income recognized | $ 3 | $ 4 | $ 10 | $ 12 |
Accounts Receivable and Loans46
Accounts Receivable and Loans (Details 6) - U S Card Services [Member] Account in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)AccountM | Sep. 30, 2014USD ($)AccountM | Sep. 30, 2015USD ($)AccountM | Sep. 30, 2014USD ($)Account | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | Account | 13 | 15 | 40 | 46 |
Aggregated Outstanding Balance | $ 106 | $ 124 | $ 329 | $ 390 |
Card Member Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | Account | 10 | 11 | 31 | 35 |
Aggregated Outstanding Balance | $ 69 | $ 83 | $ 218 | $ 261 |
Average basis point reduction in interest rate by class of Card Member loans | 9.00% | 9.00% | 10.00% | 11.00% |
Card Member Receivables [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | Account | 3 | 4 | 9 | 11 |
Aggregated Outstanding Balance | $ 37 | $ 41 | $ 111 | $ 129 |
Average payment term extension | 12 | 12 | 12 | 12 |
Accounts Receivable and Loans47
Accounts Receivable and Loans (Details 7) - U S Card Services [Member] Account in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)Account | Sep. 30, 2014USD ($)Account | Sep. 30, 2015USD ($)Account | Sep. 30, 2014USD ($)Account | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | Account | 2 | 3 | 9 | 8 |
Aggregated Outstanding Balance Upon Payment Default | $ 15 | $ 14 | $ 42 | $ 49 |
Card Member Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | Account | 1 | 2 | 6 | 6 |
Aggregated Outstanding Balance Upon Payment Default | $ 14 | $ 12 | $ 39 | $ 40 |
Card Member Receivables [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | Account | 1 | 1 | 3 | 2 |
Aggregated Outstanding Balance Upon Payment Default | $ 1 | $ 2 | $ 3 | $ 9 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in the Card Member receivables reserve for losses | ||||
Balance, January 1 | $ 465 | $ 386 | ||
Provisions | $ 203 | $ 196 | 542 | 594 |
Cardmember receivables net write-offs | (544) | (527) | ||
Card Member receivables reserves for losses - other | (22) | (21) | ||
Balance, September 30 | $ 441 | $ 432 | $ 441 | $ 432 |
Reserves for Losses (Details 1)
Reserves for Losses (Details 1) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Abstract] | ||
Card Member receivables evaluated individually for impairment | $ 30 | $ 48 |
Related reserves | 18 | 35 |
Card Member receivables evaluated collectively for impairment | 44,301 | 44,803 |
Related reserves | $ 423 | $ 430 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in the Card Member loans reserve for losses | ||||
Balance, January 1 | $ 1,201 | $ 1,261 | ||
Provisions | $ 309 | $ 265 | 829 | 797 |
Cardmember loans net write-offs - principal | (733) | (786) | ||
Cardmember loans net write-offs - interest and fees | (122) | (124) | ||
Card Member loans reserves for losses - other | (11) | (2) | ||
Balance, September 30 | $ 1,164 | $ 1,146 | $ 1,164 | $ 1,146 |
Reserves For Losses (Details 3)
Reserves For Losses (Details 3) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Abstract] | ||
Card Member loans evaluated individually for impairment | $ 333 | $ 286 |
Reserves on Card Member loans evaluated individually for impairment | 66 | 67 |
Card Member loans evaluated collectively for impairment | 68,562 | 70,099 |
Reserves on Card Member loans evaluated collectively for impairment | $ 1,098 | $ 1,134 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | $ (22) | $ (21) |
Card Member loans reserves for losses - other | (11) | (2) |
Allowance for Card Member Receivables and Reserves, Recoveries of Bad Debts | 302 | 269 |
Allowance for Card Member Loans, Recoveries of Bad Debts | 320 | 324 |
Card Member Receivables, net write-offs/TDR | 49 | 14 |
Card Member Loans, net write-offs/TDR | 30 | (5) |
Unauthorized Transactions [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - 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 reserves for losses - other | (13) | (6) |
Card Member loans reserves for losses - other | (18) | (7) |
Other Items [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | (9) | (8) |
Card Member loans reserves for losses - other | $ 7 | $ 11 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Available for Sale Securities by Type | ||
Cost | $ 3,838 | $ 4,280 |
Gross Unrealized Gains | 115 | 154 |
Gross Unrealized Losses | (6) | (3) |
Estimated Fair Value | 3,947 | 4,431 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 2,971 | 3,366 |
Gross Unrealized Gains | 97 | 129 |
Gross Unrealized Losses | (4) | (2) |
Estimated Fair Value | 3,064 | 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 | 297 | 346 |
Gross Unrealized Gains | 5 | 4 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 302 | 350 |
Corporate debt securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 30 | 37 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 31 | 40 |
Mortgage-backed securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 109 | 128 |
Gross Unrealized Gains | 5 | 8 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 114 | 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 | 379 | 350 |
Gross Unrealized Gains | 6 | 9 |
Gross Unrealized Losses | (1) | 0 |
Estimated Fair Value | 384 | 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 ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 90 | $ 0 |
Estimated Fair Value, 12 months or more | 46 | 105 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 3 | 0 |
Gross Unrealized Losses, 12 months or more | 3 | 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 | 59 | 0 |
Estimated Fair Value, 12 months or more | 13 | 72 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 2 | 0 |
Gross Unrealized Losses, 12 months or more | 2 | 2 |
Foreign government bonds and obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 31 | 0 |
Estimated Fair Value, 12 months or more | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 1 | 0 |
Gross Unrealized Losses, 12 months or more | 0 | 0 |
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 (Detail55
Investment Securities (Details 2) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015USD ($)securities | Dec. 31, 2014USD ($)securities | |
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 35 | 0 |
Number of securities, 12 months or more | securities | 14 | 15 |
Number of securities, total | securities | 49 | 15 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, less than 12 months | $ 88 | |
Estimated Fair Value, 12 months or more | 46 | $ 105 |
Estimated Fair Value, Total | 134 | 105 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 3 | 0 |
Gross Unrealized Losses, 12 months or more | 3 | 3 |
Gross Unrealized Losses, Total | $ 6 | $ 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 | securities | 35 | 0 |
Number of securities, 12 months or more | securities | 12 | 15 |
Number of securities, total | securities | 47 | 15 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, less than 12 months | $ 88 | |
Estimated Fair Value, 12 months or more | 37 | $ 105 |
Estimated Fair Value, Total | 125 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 3 | 0 |
Gross Unrealized Losses, 12 months or more | 2 | 3 |
Gross Unrealized Losses, Total | $ 5 | $ 3 |
Ratio Of Fair Value To Amortized Cost Less Than Ninety Percent [Member] | ||
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 0 | |
Number of securities, 12 months or more | securities | 2 | |
Number of securities, total | securities | 2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, less than 12 months | $ 125 | |
Estimated Fair Value, 12 months or more | 9 | |
Estimated Fair Value, Total | 134 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | |
Gross Unrealized Losses, 12 months or more | 1 | |
Gross Unrealized Losses, Total | $ 1 |
Investment Securities (Detail56
Investment Securities (Details 3) $ in Millions | Sep. 30, 2015USD ($) |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | $ 459 |
Due after 1 year but within 5 years | 324 |
Due after 5 years but within 10 years | 259 |
Due after 10 years | 2,746 |
Total | 3,788 |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 459 |
Estimated Fair Value, Due after 1 year but within 5 years | 331 |
Estimated Fair Value, Due after 5 years but within 10 years | 275 |
Estimated Fair Value, Due after 10 years | 2,832 |
Total | $ 3,897 |
Investment Securities (Detail57
Investment Securities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investment Securities (Details) [Abstract] | |||||
Other-than-temporary impairments recognized during the period | $ 0 | $ 0 | |||
Gain on sale of securities | $ 1 | $ 20 | 1 | $ 100 | |
Losses on sale of securities | $ 0 | $ 0 | $ 0 | $ 0 |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets from Trusts [Line Items] | ||
Restricted cash | $ 748 | $ 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 | $ 747 | $ 62 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) - USD ($) $ in Billions | Sep. 30, 2015 | Dec. 31, 2014 |
American Express Lending Trust [Member] | ||
Securitized Trusts [Line Items] | ||
Subordinated securities owned | $ 1 | $ 1 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
U.S.: | ||
Interest-bearing | $ 48,513 | $ 43,279 |
Non-interest-bearing | 356 | 418 |
Non-U.S.: | ||
Interest-bearing | 106 | 115 |
Non-interest-bearing | 326 | 359 |
Total customer deposits | 49,301 | 44,171 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 312 | 372 |
Non-U.S.: | ||
Non-interest-bearing | $ 314 | $ 347 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 28,229 | $ 26,159 |
Certificates of deposit - Direct | 291 | 333 |
Certificates of deposit - Third party | 11,053 | 7,838 |
Sweep accounts - Third party | 8,940 | 8,949 |
Non-U.S. deposits and U.S. non-interest bearing deposits | 162 | 173 |
Card Member credit balances - U.S. and non-U.S. | 626 | 719 |
Total customer deposits | $ 49,301 | $ 44,171 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Sep. 30, 2015USD ($) |
Time Deposits By Maturity | |
2,015 | $ 416 |
2,016 | 2,416 |
2,017 | 2,730 |
2,018 | 2,527 |
2,019 | 1,846 |
After 5 years | 1,432 |
Total | 11,367 |
United States [Member] | |
Time Deposits By Maturity | |
2,015 | 398 |
2,016 | 2,411 |
2,017 | 2,730 |
2,018 | 2,527 |
2,019 | 1,846 |
After 5 years | 1,432 |
Total | 11,344 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,015 | 18 |
2,016 | 5 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
After 5 years | 0 |
Total | $ 23 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Time Deposits $250,000 Or More [Abstract] | ||
U.S. | $ 106 | $ 111 |
Non-U.S. | 17 | 17 |
Total | $ 123 | $ 128 |
Contingencies (Details Textuals
Contingencies (Details Textuals) $ in Millions | Sep. 30, 2015USD ($) |
Contingencies (Textuals) [Abstract] | |
Range of possible loss, minimum | $ 0 |
Range of possible loss, maximum | $ 370 |
Derivatives and Hedging Activ65
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | $ 922 | $ 991 |
Total fair value of derivatives liabilties | 218 | 164 |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Total derivative assets, net | 485 | 711 |
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | (307) | (158) |
Derivative asset and liability netting | (130) | (122) |
Total derivative assets, net | 485 | 711 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 776 | 806 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 146 | 185 |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Total derivative liabilities, net | 88 | 38 |
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | 0 | (4) |
Derivative asset and liability netting | (130) | (122) |
Total derivative liabilities, net | 88 | 38 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 102 | 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 | 116 | 114 |
Fair Value Hedging [Member] | Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 391 | 314 |
Fair Value Hedging [Member] | Other Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 0 | 4 |
Net Investment Hedging [Member] | Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 385 | 492 |
Net Investment Hedging [Member] | Other Liabilities [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 102 | 46 |
Risk Exposure Low [Member] | ||
Derivative [Line Items] | ||
Total derivative assets, net | 0 | |
Total derivative liabilities, net | 0 | 0 |
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, net | 0 | |
Total derivative liabilities, net | 0 | 0 |
Individually Significant Counterparties [Member] | ||
Derivative [Line Items] | ||
Total derivative assets, net | 0 | 0 |
Total derivative liabilities, net | 0 | 0 |
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, net | 0 | 0 |
Total derivative liabilities, net | $ 0 | $ 0 |
Derivatives and Hedging Activ66
Derivatives and Hedging Activities (Details 1) - Fair Value Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Expense [Member] | Interest Rate Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative contract | $ 108 | $ (109) | $ 82 | $ (170) |
Hedged item | (114) | 112 | (85) | 176 |
Net hedge ineffectiveness | (6) | 3 | (3) | 6 |
Other Income [Member] | Total Return Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative contract | 0 | 0 | 0 | 11 |
Hedged item | 0 | 0 | 0 | (11) |
Net hedge ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives and Hedging Activ67
Derivatives and Hedging Activities (Details 2) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax gains (losses) | $ (15) | $ 2 | $ 13 | $ 88 |
Other Expense [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax gains (losses) | 0 | 0 | 0 | 0 |
Other Expense [Member] | Foreign exchange contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax gains (losses) | (19) | 2 | 15 | 84 |
Cost Of Card Member Services [Member] | Foreign exchange contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax gains (losses) | $ 4 | $ 0 | $ (2) | $ 4 |
Derivatives and Hedging Activ68
Derivatives and Hedging Activities (Details Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||||
Net reduction in interest expense on long term debt and other | $ 73,000,000 | $ 74,000,000 | $ 214,000,000 | $ 217,000,000 | |
Derivative asset not offset | 0 | 0 | $ 0 | ||
Derivative liabilities not offset | 0 | 0 | 0 | ||
Margin On Interest Rate Swap Not Netted | 155,000,000 | 155,000,000 | 114,000,000 | ||
Derivative [Line Items] | |||||
Equity investment | 1,000,000 | 1,000,000 | 1,000,000 | ||
Net hedge ineffectiveness | 0 | 1,000,000 | |||
Not Sold Or Repledged [Member] | |||||
Derivative [Line Items] | |||||
Securities received as collateral | 0 | 0 | 91,000,000 | ||
Fair Value Hedges [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of long-term debt | 18,500,000,000 | 18,500,000,000 | 17,600,000,000 | ||
Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Effective portion of gain (loss) on hedges | 384,000,000 | 246,000,000 | 545,000,000 | 113,000,000 | |
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Other Expense [Member] | |||||
Derivative [Line Items] | |||||
Amount reclassified from AOCI into income | 0 | $ (1,000,000) | 1,000,000 | $ 9,000,000 | |
Credit Valuation Adjustment [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of long-term debt | $ 0 | $ 0 | $ 0 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investment securities: | ||
Equity securities | $ 1 | $ 1 |
Debt securities and other | 3,946 | 4,430 |
Derivatives | 922 | 991 |
Total assets | 4,869 | 5,422 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities | 1 | 1 |
Debt securities and other | 302 | 350 |
Derivatives | 0 | 0 |
Total assets | 303 | 351 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities and other | 3,644 | 4,080 |
Derivatives | 922 | 991 |
Total assets | 4,566 | 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 ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Liabilities [Abstract] | ||
Derivatives | $ 218 | $ 164 |
Total liabilities | 218 | 164 |
Level 1 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 218 | 164 |
Total liabilities | 218 | 164 |
Level 3 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | $ 19,938 | $ 22,288 | $ 21,264 | $ 19,486 |
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 11,367 | |||
Long-term debt | 48,653 | 57,955 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 43,890 | 44,386 | ||
Card Member loans, net | 67,731 | 69,184 | ||
Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 13,285 | 19,516 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 20,000 | 22,000 | ||
Other financial assets | 48,000 | 48,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 69,000 | 70,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 62,000 | 61,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 11,000 | 8,000 | ||
Long-term debt | 49,000 | 58,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 20,000 | 22,000 | ||
Other financial assets | 48,000 | 48,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 69,000 | 71,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 62,000 | 61,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 11,000 | 8,000 | ||
Long-term debt | 50,000 | 60,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 13,400 | 19,500 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 5,900 | 7,000 | ||
Card Member loans, net | 27,200 | 29,900 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 19,000 | 21,000 | ||
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 | 1,000 | ||
Other financial assets | 48,000 | 48,000 | ||
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 | 62,000 | 61,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 11,000 | 8,000 | ||
Long-term debt | 50,000 | 60,000 | ||
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 | 69,000 | 71,000 | ||
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) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
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 ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Maximum potential amount of undiscounted future payments [Member] | ||
Type of Guarantee | ||
Return and Merchant Protection | $ 42,000 | $ 37,000 |
Other | 6,000 | 8,000 |
Total | 48,000 | 45,000 |
Amount of related liability [Member] | ||
Type of Guarantee | ||
Return and Merchant Protection | 49 | 44 |
Other | 57 | 67 |
Total | $ 106 | $ 111 |
Changes in Accumulated Other 74
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in Other Comprehensive income | ||||
Balances as of start of period | $ (1,919) | |||
Pension and other postretirement benefit gains | $ (7) | $ (7) | (36) | $ (48) |
Balances as of end of period | (2,374) | (2,374) | ||
Accumulated Other Comprehensive (Loss) Income [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (2,154) | (1,371) | (1,919) | (1,426) |
Net unrealized gains (losses) | (6) | 2 | (26) | 102 |
Increase (decrease) due to amounts reclassified into earnings | (1) | (12) | (2) | (66) |
Net translation gain (losses) of investments in foreign operations | (604) | (414) | (1,009) | (313) |
Net (losses) gains related to hedges of investment in foreign operations | 384 | 246 | 546 | 113 |
Pension and other postretirement benefit gains | 7 | 7 | 36 | 48 |
Net change in accumulated other comprehensive income (loss) | (220) | (171) | (455) | (116) |
Balances as of end of period | (2,374) | (1,542) | (2,374) | (1,542) |
Net Unrealized Investment Gains (Losses) on Investment Securities [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | 76 | 105 | 96 | 63 |
Net unrealized gains (losses) | (6) | 2 | (26) | 102 |
Increase (decrease) due to amounts reclassified into earnings | (1) | (13) | (1) | (71) |
Net translation gain (losses) of investments in foreign operations | 0 | 0 | 0 | 0 |
Net (losses) gains related to hedges of investment in foreign operations | 0 | 0 | 0 | 0 |
Pension and other postretirement benefit gains | 0 | 0 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | (7) | (11) | (27) | 31 |
Balances as of end of period | 69 | 94 | 69 | 94 |
Foreign Currency Translation Adjustments [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (1,743) | (1,118) | (1,499) | (1,090) |
Net unrealized gains (losses) | 0 | 0 | 0 | 0 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 1 | (1) | 5 |
Net translation gain (losses) of investments in foreign operations | (604) | (414) | (1,009) | (313) |
Net (losses) gains related to hedges of investment in foreign operations | 384 | 246 | 546 | 113 |
Pension and other postretirement benefit gains | 0 | 0 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | (220) | (167) | (464) | (195) |
Balances as of end of period | (1,963) | (1,285) | (1,963) | (1,285) |
Net Unrealized Pension and Other Postretirement Benefit Losses [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (487) | (358) | (516) | (399) |
Net unrealized gains (losses) | 0 | 0 | 0 | 0 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 | 0 | 0 |
Net translation gain (losses) of investments in foreign operations | 0 | 0 | 0 | 0 |
Net (losses) gains related to hedges of investment in foreign operations | 0 | 0 | 0 | 0 |
Pension and other postretirement benefit gains | 7 | 7 | 36 | 48 |
Net change in accumulated other comprehensive income (loss) | 7 | 7 | 36 | 48 |
Balances as of end of period | $ (480) | $ (351) | $ (480) | $ (351) |
Changes in Accumulated Other 75
Changes in Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other non-interest revenue | $ 504 | $ 593 | $ 1,493 | $ 1,679 |
Interest expense on long-term debt and other | 274 | 329 | 886 | 1,026 |
Total other, net expense | (1,635) | (1,596) | (4,569) | (4,393) |
Net Unrealized Investment Gains (Losses) on Investment Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other non-interest revenue | 1 | 21 | 1 | 111 |
Income tax provision for other non-interest revenue | 0 | (8) | 0 | (40) |
Other non-interest revenue, net of taxes | 1 | 13 | 1 | 71 |
Increase (decrease) due to amounts reclassified into earnings | 1 | 13 | 1 | 71 |
Foreign Currency Translation Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total other, net expense | 0 | 0 | 1 | (8) |
Income tax benefit for other, net expense | 0 | (1) | 0 | 3 |
Increase (decrease) due to amounts reclassified into earnings | 0 | (1) | 1 | (5) |
Accumulated Other Comprehensive (Loss) Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Increase (decrease) due to amounts reclassified into earnings | $ 1 | $ 12 | $ 2 | $ 66 |
Non-Interest Revenue and Expe76
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Foreign currency conversion fee revenue | $ 213 | $ 225 | $ 646 | $ 665 |
Delinquency fees | 197 | 184 | 586 | 539 |
Loyalty Partner-related fees | 101 | 100 | 280 | 286 |
Service fees | 97 | 94 | 279 | 274 |
Other | 32 | 39 | 100 | 120 |
Total other commissions and fees | $ 640 | $ 642 | $ 1,891 | $ 1,884 |
Non-Interest Revenue and Expe77
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Global Network Services partner revenues | $ 156 | $ 173 | $ 474 | $ 513 |
Net realized gains on investment securities | 1 | 20 | 1 | 100 |
Other | 347 | 400 | 1,018 | 1,066 |
Total other revenues | $ 504 | $ 593 | $ 1,493 | $ 1,679 |
Non-Interest Revenue and Expe78
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Professional services | $ 687 | $ 731 | $ 1,966 | $ 2,240 |
Occupancy and equipment | 523 | 432 | 1,372 | 1,361 |
Card and merchant-related fraud Losses | 64 | 96 | 247 | 282 |
Communications | 84 | 91 | 257 | 285 |
Gain on business travel joint venture | 0 | (15) | 0 | (641) |
Other | 277 | 261 | 727 | 866 |
Total other, net | $ 1,635 | $ 1,596 | $ 4,569 | $ 4,393 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes (Textuals) | ||||
Unrecognized tax benefits as a result of potential resolutions of prior years' tax | $ 431 | $ 431 | ||
Unrecognized tax benefits, amounts recorded to equity | $ 288 | $ 288 | ||
Actual tax rates | 34.70% | 34.20% | 34.20% | 34.40% |
Internal Revenue Service (IRS) [Member] | Earliest Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Open tax years by major tax jurisdiction | 2,008 | |||
Internal Revenue Service (IRS) [Member] | Latest Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Open tax years by major tax jurisdiction | 2,011 |
Earnings Per Common Share (EP80
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Basic and diluted: | ||||
Net income | $ 1,266 | $ 1,477 | $ 4,264 | $ 4,438 |
Preferred Dividends | (22) | 0 | (42) | 0 |
Net income available to common shareholders, basic | 1,244 | 1,477 | 4,222 | 4,438 |
Net income available to common shareholders, diluted | 1,244 | 1,477 | 4,222 | 4,438 |
Earnings allocated to participating share awards | (10) | (11) | (32) | (35) |
Net income attributable to common shareholders | $ 1,234 | $ 1,466 | $ 4,190 | $ 4,403 |
Denominator: | ||||
Basic | 994,000,000 | 1,041,000,000 | 1,007,000,000 | 1,051,000,000 |
Add: Weighted-average stock options | 3,000,000 | 6,000,000 | 4,000,000 | 6,000,000 |
Diluted | 997,000,000 | 1,047,000,000 | 1,011,000,000 | 1,057,000,000 |
Earnings Per Common Share, Basic [Abstract] | ||||
Income from continuing operations attributable to common shareholders | $ 1.24 | $ 1.41 | $ 4.16 | $ 4.19 |
Earnings Per Common Share, Diluted [Abstract] | ||||
Income from continuing operations attributable to common shareholders | $ 1.24 | $ 1.4 | $ 4.15 | $ 4.17 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per Share, amount | 600,000 | 200,000 | 500,000 | 200,000 |
Earnings per Common Share (EP81
Earnings per Common Share (EPS) (Details 1) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Preferred Shares [Line Items] | ||
Securities Issued | 1,600 | 750 |
Series B | ||
Preferred Shares [Line Items] | ||
Issuance Date | Nov. 10, 2014 | |
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 annum | 3 month LIBOR+ 3.428% | |
Quarterly floating dividend, payment dates | Beginning February 15, 2020 | |
Fixed to floating rate, conversion date | Nov. 15, 2019 | |
Series C | ||
Preferred Shares [Line Items] | ||
Issuance Date | Mar. 2, 2015 | |
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 annum | 3 month LIBOR+ 3.285% | |
Quarterly floating dividend, payment dates | Beginning June 15, 2020 | |
Fixed to floating rate, conversion date | Mar. 15, 2020 |
Earnings Per Common Share (EP82
Earnings Per Common Share (EPS) (Details Textuals) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Earnings Per Common Share Eps Textuals [Abstract] | |||||
Subordinated debentures | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | |
Subordinated debt issuance year | 2,006 | 2,006 | 2,006 | 2,006 | |
Subordinated debt maturity year | 2,036 | 2,036 | 2,036 | 2,036 | |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||
Redemption amount, per preferred shares | $ 1,000 | $ 1,000 | |||
Redemption amount. per depository shares | $ 1 | $ 1 | |||
Preferred shares, par value | $ 1.667 | $ 1.667 | $ 1.667 |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | $ 6,688 | $ 6,908 | $ 20,052 | $ 21,059 |
Interest income | 1,904 | 1,815 | 5,598 | 5,350 |
Interest expense | 399 | 420 | 1,223 | 1,302 |
Total revenues, net of interest expense | 8,193 | 8,303 | 24,427 | 25,107 |
Net income | 1,266 | 1,477 | 4,264 | 4,438 |
U S Card Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 3,302 | 3,188 | 9,822 | 9,375 |
Interest income | 1,593 | 1,465 | 4,639 | 4,296 |
Interest expense | 166 | 152 | 481 | 455 |
Total revenues, net of interest expense | 4,729 | 4,501 | 13,980 | 13,216 |
Net income | 794 | 889 | 2,614 | 2,535 |
International Card Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 1,071 | 1,206 | 3,214 | 3,571 |
Interest income | 226 | 273 | 706 | 825 |
Interest expense | 59 | 85 | 183 | 259 |
Total revenues, net of interest expense | 1,238 | 1,394 | 3,737 | 4,137 |
Net income | 89 | 142 | 348 | 378 |
Global Commercial Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 858 | 957 | 2,653 | 3,538 |
Interest income | 3 | 4 | 10 | 11 |
Interest expense | 44 | 61 | 138 | 186 |
Total revenues, net of interest expense | 817 | 900 | 2,525 | 3,363 |
Net income | 151 | 204 | 534 | 949 |
Global Network And Merchant Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 1,302 | 1,368 | 3,898 | 4,027 |
Interest income | 26 | 14 | 69 | 35 |
Interest expense | (42) | (68) | (143) | (208) |
Total revenues, net of interest expense | 1,370 | 1,450 | 4,110 | 4,270 |
Net income | 462 | 427 | 1,354 | 1,243 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 155 | 189 | 465 | 548 |
Interest income | 56 | 59 | 174 | 183 |
Interest expense | 172 | 190 | 564 | 610 |
Total revenues, net of interest expense | 39 | 58 | 75 | 121 |
Net income | $ (230) | $ (185) | $ (586) | $ (667) |