Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 08, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AMERICAN EXPRESS CO | ||
Trading Symbol | AXP | ||
Entity Central Index Key | 4,962 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | true | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
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 Public Float | $ 77.7 | ||
Entity Common Stock, Shares Outstanding | 964,045,452 | ||
Amendment Description | No |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Non-interest revenues | ||||
Discount revenue | $ 19,297 | $ 19,389 | $ 18,591 | |
Net card fees | 2,700 | 2,712 | 2,631 | |
Travel commissions and fees | 349 | 1,118 | 1,913 | |
Other commissions and fees | 2,517 | 2,508 | 2,414 | |
Other | 2,033 | 2,989 | 2,274 | |
Total non-interest revenues | 26,896 | 28,716 | 27,823 | |
Interest income | ||||
Interest on loans | 7,309 | 6,929 | 6,718 | |
Interest and dividends on investment securities | 157 | 179 | 201 | |
Deposits with banks and other | 79 | 71 | 86 | |
Total interest income | 7,545 | 7,179 | 7,005 | |
Interest expense | ||||
Deposits | 475 | 373 | 442 | |
Long-term debt and other | 1,148 | 1,334 | 1,516 | |
Total interest expense | 1,623 | 1,707 | 1,958 | |
Net interest income | 5,922 | 5,472 | 5,047 | |
Total revenues net of interest expense | 32,818 | 34,188 | 32,870 | |
Provisions for losses | ||||
Provisions | 737 | 792 | 648 | |
Card member loans | 1,190 | 1,138 | 1,115 | |
Other | 61 | 114 | 69 | |
Total provisions for losses | 1,988 | 2,044 | 1,832 | |
Total revenues net of interest expense after provisions for losses | 30,830 | 32,144 | 31,038 | |
Expenses | ||||
Marketing and promotion | 3,109 | 3,216 | 2,939 | |
Card Member rewards | 6,996 | 6,931 | 6,457 | |
Card Member services and other | 1,018 | 822 | 767 | |
Salaries and employee benefits | 4,976 | 6,095 | 6,191 | |
Other,net | 6,793 | 6,089 | 6,796 | |
Total | 22,892 | 23,153 | 23,150 | |
Pretax income | 7,938 | 8,991 | 7,888 | |
Income tax provision | 2,775 | 3,106 | 2,529 | |
Net income attributable to common shareholders | $ 5,163 | $ 5,885 | $ 5,359 | |
Earnings per Common Share | ||||
Basic | [1] | $ 5.07 | $ 5.58 | $ 4.91 |
Diluted | $ 5.05 | $ 5.56 | $ 4.88 | |
Average common shares outstanding for earnings per common share: | ||||
Basic | 999 | 1,045 | 1,082 | |
Diluted | 1,003 | 1,051 | 1,089 | |
[1] | Represents net income less ( i ) earnings allocated to participating share awards of $ 38 million, $ 46 million and $ 47 million for the years ended December 31, 2015 , 2014 and 2013 , respectively , and (ii) dividends on preferred shares of $ 62 million for the year ended December 31, 2015 , and nil f or the years ended December 31, 2014 and 2013 . |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Income [Abstract] | |||||||||||
Earnings allocated to participating share awards | $ 6,000,000 | $ 10,000,000 | $ 11,000,000 | $ 11,000,000 | $ 11,000,000 | $ 11,000,000 | $ 12,000,000 | $ 12,000,000 | $ 38,000,000 | $ 46,000,000 | $ 47,000,000 |
Dividends Preferred Stock | $ 20,000,000 | $ 22,000,000 | $ 20,000,000 | $ 0 | $ 62,000,000 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 5,163 | $ 5,885 | $ 5,359 |
Other comprehensive income (loss) | |||
Net unrealized securities (losses) gains, net of tax | (38) | 33 | (252) |
Foreign currency translation adjustments, net of tax | (545) | (409) | (336) |
Net unrealized pension and other postretirement benefit gains, net of tax | (32) | (117) | 89 |
Other comprehensive loss | (615) | (493) | (499) |
Comprehensive income | $ 4,548 | $ 5,392 | $ 4,860 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | ||
Cash and cash due from banks | $ 2,935 | $ 2,628 |
Interest-bearing deposits in other banks | 19,569 | 19,190 |
Short-term investment securities | 258 | 470 |
Total cash and cash equivalents | 22,762 | 22,288 |
Card Member loans and receivables held for sale | 14,992 | 0 |
Accounts receivable | ||
Card Member receivables | 43,671 | 44,386 |
Other receivables | 3,024 | 2,614 |
Loans | ||
Card Member loans | 57,545 | 69,184 |
Other loans | 1,254 | 920 |
Investment securities | 3,759 | 4,431 |
Premises and equipment | 4,108 | 3,938 |
Other assets | 10,069 | 11,342 |
Total assets | 161,184 | 159,103 |
Liabilities | ||
Customer deposits | 54,997 | 44,171 |
Travelers Cheques and other prepaid products | 3,247 | 3,673 |
Accounts payable | 11,822 | 11,300 |
Short-term borrowings | 4,812 | 3,480 |
Long-term debt | 48,061 | 57,955 |
Other liabilities | 17,572 | 17,851 |
Total liabilities | 140,511 | 138,430 |
Shareholders' Equity | ||
Preferred shares issued | 0 | 0 |
Common shares | 194 | 205 |
Additional paid-in capital | 13,348 | 12,874 |
Retained earnings | 9,665 | 9,513 |
Accumulated other comprehensive income (loss) | ||
Net unrealized securities gains, net of tax | 58 | 96 |
Foreign currency translation adjustments, net of tax | (2,044) | (1,499) |
Net unrealized pension and other postretirement benefit losses, net of tax | (548) | (516) |
Total accumulated other comprehensive loss | (2,534) | (1,919) |
Total shareholders' equity | 20,673 | 20,673 |
Total liabilities and shareholders' equity | $ 161,184 | $ 159,103 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Card Member receivables, gross | $ 44,133,000,000 | $ 44,851,000,000 |
Card Member loans | 58,573,000,000 | 70,385,000,000 |
Other assets | 10,069,000,000 | 11,342,000,000 |
Short-term borrowings | 4,812,000,000 | 3,480,000,000 |
Long-term debt | 48,061,000,000 | 57,955,000,000 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 41,000,000 | 204,000,000 |
Card Member loans and receivables held for sale | 14,992,000,000 | 0 |
Accounts receivable | ||
Card Member receivables, reserves | 462,000,000 | 465,000,000 |
Other receivables, reserves | 43,000,000 | 61,000,000 |
Loans | ||
Card Member loans, reserves | 1,028,000,000 | 1,201,000,000 |
Other loans, reserves | 20,000,000 | 12,000,000 |
Premises and equipment, accumulated depreciation | 6,801,000,000 | 6,270,000,000 |
Restricted cash | 477,000,000 | 384,000,000 |
Accumulated other comprehensive income (loss) | ||
Net unrealized securities gains, tax | 32,000,000 | 52,000,000 |
Foreign currency translation adjustments, tax | (100,000,000) | (317,000,000) |
Net unrealized pension and other postretirement benefit losses, net of tax | $ (223,000,000) | $ (223,000,000) |
Common shares, par value | $ 0.2 | $ 0.2 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 969,000,000 | 1,023,000,000 |
Common shares, outstanding | 969,000,000 | 1,023,000,000 |
Preferred shares, authorized | 20,000,000 | 20,000,000 |
Preferred shares, issued | 1,600 | 750 |
Preferred shares, outstanding | 1,600 | 750 |
Preferred shares, par value | $ 1.67 | $ 1.67 |
Variable Interest Enterprise [Member] | ||
Card Member receivables, gross | 6,649,000,000 | 7,025,000,000 |
Card Member loans | 23,559,000,000 | 30,115,000,000 |
Short-term borrowings | 100,000,000 | 0 |
Long-term debt | 13,602,000,000 | 19,516,000,000 |
Cash and cash equivalents | ||
Card Member loans and receivables held for sale | 4,966,000,000 | 0 |
Loans | ||
Restricted cash | $ 155,000,000 | $ 64,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net income | $ 5,163,000,000 | $ 5,885,000,000 | $ 5,359,000,000 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Provisions for losses | 1,988,000,000 | 2,044,000,000 | 1,832,000,000 |
Depreciation and amortization | 1,043,000,000 | 1,012,000,000 | 1,020,000,000 |
Deferred taxes and other | 506,000,000 | (941,000,000) | (5,000,000) |
Stock-based compensation | 234,000,000 | 290,000,000 | 350,000,000 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other receivables | (673,000,000) | (56,000,000) | (73,000,000) |
Other assets | 2,058,000,000 | 650,000,000 | 335,000,000 |
Accounts payable and other liabilities | 1,020,000,000 | 2,594,000,000 | 88,000,000 |
Travelers Cheques and other prepaid products | (367,000,000) | (488,000,000) | (359,000,000) |
Premium paid on debt exchange | 0 | 0 | 0 |
Net cash provided by operating activities | 10,972,000,000 | 10,990,000,000 | 8,547,000,000 |
Cash Flows from Investing Activities | |||
Sales of available-for-sale investment securities | 12,000,000 | 242,000,000 | 217,000,000 |
Maturities and redemptions of available-for-sale investment securities | 2,091,000,000 | 1,116,000,000 | 1,292,000,000 |
Sales of other investments | 0 | 990,000,000 | 0 |
Purchase of investments | (1,713,000,000) | (886,000,000) | (1,348,000,000) |
Net increase in Card Member receivables and loans, including held for sale | (6,967,000,000) | (8,077,000,000) | (6,301,000,000) |
Purchase of premises and equipment | (1,341,000,000) | (1,195,000,000) | (1,006,000,000) |
Acquisitions/dispositions, net of cash acquired | (155,000,000) | (229,000,000) | (195,000,000) |
Net (increase) decrease in restricted cash | (120,000,000) | 72,000,000 | 72,000,000 |
Net cash used in investing activities | (8,193,000,000) | (7,967,000,000) | (7,269,000,000) |
Cash Flows from Financing Activities | |||
Net increase in customer deposits | 10,878,000,000 | 2,459,000,000 | 1,195,000,000 |
Net increase (decrease) in short-term borrowings | 1,395,000,000 | (1,374,000,000) | 1,843,000,000 |
Issuance of long-term debt | 9,926,000,000 | 16,020,000,000 | 11,995,000,000 |
(Principal payments on) / issuance of long term debt | (19,610,000,000) | (12,768,000,000) | (14,763,000,000) |
Issuance of American Express preferred shares | 841,000,000 | 742,000,000 | 0 |
Issuance of American Express common shares | 193,000,000 | 362,000,000 | 721,000,000 |
Repurchase of American Express common shares | (4,480,000,000) | (4,389,000,000) | (3,943,000,000) |
Dividends paid | (1,172,000,000) | (1,041,000,000) | (939,000,000) |
Net cash provided by (used in) financing activities | (2,029,000,000) | 11,000,000 | (3,891,000,000) |
Effect of exchange rate changes on cash and cash equivalents | (276,000,000) | (232,000,000) | (151,000,000) |
Net increase (decrease) in cash and cash equivalents | 474,000,000 | 2,802,000,000 | (2,764,000,000) |
Cash and cash equivalents at beginning of year | 22,288,000,000 | 19,486,000,000 | 22,250,000,000 |
Cash and cash equivalents at end of year | $ 22,762,000,000 | $ 22,288,000,000 | $ 19,486,000,000 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Cash Flows [Abstract] | |||
Sale of premises and equipment | $ 42 | $ 3 | $ 72 |
Transfer of Card Member loans and receivables to Card Member loans and receivables held for sale | $ 14,524 | ||
Gain on business travel joint venture transaction | $ 630 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Preferred shares | Common Shares | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2012 | $ 18,886 | $ 0 | $ 221 | $ 12,067 | $ (927) | $ 7,525 |
Net income | 5,359 | 5,359 | ||||
Other comprehensive (loss) income | (499) | (499) | ||||
Repurchase of common shares | (4,000) | (11) | (648) | (3,341) | ||
Cash dividends declared | ||||||
Cash dividends declared common, per share | (967) | (967) | ||||
Ending Balance at Dec. 31, 2013 | 19,496 | 0 | 213 | 12,202 | (1,426) | 8,507 |
Other changes, primarily employee plans | 717 | 3 | 783 | (69) | ||
Net income | 5,885 | 5,885 | ||||
Other comprehensive (loss) income | (493) | (493) | ||||
Repurchase of common shares | (4,378) | (10) | (604) | (3,764) | ||
Cash dividends declared | ||||||
Cash dividends declared common, per share | (1,055) | (1,055) | ||||
Ending Balance at Dec. 31, 2014 | 20,673 | 0 | 205 | 12,874 | (1,919) | 9,513 |
Other changes, primarily employee plans | 476 | 2 | 534 | (60) | ||
Preferred shares issued | 0 | 742 | ||||
Net income | 5,163 | 5,163 | ||||
Other comprehensive (loss) income | (615) | (615) | ||||
Repurchase of common shares | (4,509) | (12) | (714) | (3,783) | ||
Cash dividends declared preferred | (62) | (62) | ||||
Cash dividends declared | ||||||
Cash dividends declared common, per share | (1,128) | (1,128) | ||||
Ending Balance at Dec. 31, 2015 | 20,673 | $ 0 | 194 | 13,348 | $ (2,534) | 9,665 |
Other changes, primarily employee plans | 310 | $ 1 | 347 | $ (38) | ||
Preferred shares issued | $ 0 | $ 841 |
Consolidated Statements of Sh10
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash dividends declared | |||||||||||
Common stock, dividend per share | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.23 | $ 1.13 | $ 1.01 | $ 0.89 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Basis of Presentation | NOTE 1 Summary of Significant Accounting Policies The Company American Express Company (the Company) is a global service s 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 t o 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, these business travel operations were wholly own ed. 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 chan nels, including direct mail, on li ne applications, in-house and third-party sales forces a nd direct response advertising. Principles of Consolidation The Consolidated Financial Statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. The Company consolidates entities in which it holds a “controlling financial interest.” For voting interest entities, the Company is considered to hold a controll ing financial interest when it is able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the Company is considered to hold a controlling financial interest when it is determined to be the prim ary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that entity’s economic performance, and (2) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. The determination of whether an entity is a VIE is based on the amount and characteristics of the entity’s equity. Entities in which the Company’s voting interest in common equity does not provide i t with control, but allows the Company to exert significant influence over the operating and financial decisions, are accounted for under the equity method. All other investments in equity securities, to the extent they are not considered marketable securi ties, are accounted for under the cost method. Foreign Currency Assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of the reporting period. The resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation adjustments, including qualifying hedge and tax effects, are reclas sified to earnings upon the sale or substantial liquidation of investments in foreign operations. Revenues and expenses are translated at the average month-end exchange rates during the year. Gains and losses related to transactions in a currency other tha n the functional currency are reported net in the Company’s Consolidated Statements of Income, in other non-interest revenue, interest income, interest expense, or other expenses, depending on the nature of the activity. Net foreign currency transaction ga ins amounted to approximately $ 68 million, $ 44 million and $ 108 million in 2015 , 2014 and 2013 , respectively. Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member losses on loans and receivables, the proprietary point liability for Membership Rewards costs, fair value measurement, goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. Income statement Discount Revenue Discount revenue represents the amount earned by the Company on transactions occurring at merchants with which the Company, or a Global Network Services (GNS) partner, has entered into a card acceptance agreement for facilitating transactions between the merchants and the Company’s Card Members. The discount fee generally is deducted from the payment to the merchant and recorded as discount revenue at the time the charge is captured. Net Card Fees Card fees, net of deferred acquisition costs and a reserve for projected r efunds for Card Member cancellation, are deferred and recognized on a straight-line basis over the 12-month card membership period as Net Card Fees in the Consolidated Statements of Income. The unamortized net card fee balance is reported in Other Liabilit ies on the Consolidated Balance Sheets (refer to Note 10). Travel Commissions and Fees The Company earns travel commissions and fees by charging clients transaction or management fees for selling and arranging travel. Client transaction fee revenue is recognized at the time the client books the travel arrangements. The Company’s travel suppliers (e.g., airlines, hotels and car rental companies) pay commissions and fees on tickets issued, sales and other services based o n contractual agreements. Commissions and fees from travel suppliers are generally recognized at the time a ticket is purchased or over the term of the contract, if not transaction specific. Commissions and fees that are based on services rendered (e.g., h otel stays and car rentals) are recognized based on usage. Other Commissions and Fees Other commissions and fees include foreign currency conversion fees, Card Member delinquency fees, service fees and other card-related assessments, which are recognize d primarily in the period in which they are charged to the Card Member (refer to Note 19). In addition, service fees are also earned from other customers (e.g., merchants) for a variety of services and are recognized when the service is performed, which is generally in the period the fee is charged. Also included are fees related to the Company’s Membership Rewards program, which are deferred and recognized over the period covered by the fee, generally one year. The unamortized Membership Rewards fee balanc e is included in Other Liabilities on the Consolidated Balance Sheets (Refer to Note 10). Contra-revenue The Company regularly makes payments through contractual arrangements with merchants, corporate payments clients, Card Members and certain other cust omers. These payments, including cash rebates and statement credits provided to Card Members, are generally classified as contra-revenue unless a specifically identifiable benefit (e.g., goods or services) is received by the Company or its Card Members in consideration for that payment, and the fair value of such benefit is determinable and measurable. If no such benefit is identified, then the entire payment is classified as contra-revenue and included in the Consolidated Statements of Income in the revenu e line item where the related transactions are recorded (e.g., Discount revenue, Travel commissions and fees, and Other commissions and fees). If such a benefit is identified, then the payment is classified as expense up to the estimated fair value of the benefit. Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is paid or written off. Interest and dividends on investment securities primarily relate to the Company’s performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it is likely that future interest payments will not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member receivables and loans, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided principally into two categories: ( i ) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily rel ates to interest expense on the Company’s long-term financing and short-term borrowings, as well as the realized impact of derivatives hedging interest rate risk on the Company’s long-term debt. Expenses Marketing and promotion expense includes advertisi ng costs, which are expensed in the year in which the advertising first takes place. Balance Sheet Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchase d under resale agreements, and other highly liquid investments with original maturities of 90 days or less. Goodwill Goodwill represents the excess of acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. The Company allocates goodwill to its reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment for which discrete financial information is regula rly reviewed by the operating segment manager. The Company evaluates goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of the Comp any’s reporting units below its carrying value. The Company performs an impairment evaluation of goodwill using a two-step process. The first step identifies whether there is a potential impairment by comparing the fair value of a reporting unit to the car rying amount, including goodwill. If the carrying amount of a reporting unit exceeds the fair value, the second step of the impairment test is performed to determine the implied fair value of goodwill. An impairment loss is recognized based on the amount t hat the carrying amount of goodwill exceeds the implied fair value. Prior to completing the interim assessment of goodwill for impairment under the second step, the Company performs a recoverability test of certain long-lived assets by assessing the recove rability of the asset values based on the cash flows generated by the relevant assets or asset groups . If the assets are not recoverable, an impairment loss is recognized based on the amount that the carrying value of the asset or asset group exceeds its f air value. See further details in Other Intangible Assets herein. Goodwill impairment testing involves management judgment, requiring an assessment of whether the carrying value of the reporting unit can be supported by its fair value using widely accepted valuation techniques. The Company uses a combination of the income approach (discounted cash flows) and market approach (market multiples). When preparing discounted cash flow models under the income approach, the Company uses internal forecasts to estim ate future cash flows expected to be generated by the reporting units. To discount these cash flows, the Company uses the expected cost of equity, determined by using a capital asset pricing model. The Company believes the discount rates used appropriately reflect the risks and uncertainties in the financial markets generally and specifically in the Company’s internally developed forecasts. When using market multiples under the market approach, the Company applies comparable publicly traded companies’ multi ples (e.g., earnings, revenues) to its reporting units’ actual results. Other Intangible Assets Intangible assets, primarily customer relationships, are amortized over their estimated useful lives of 1 to 22 years on a straight-line basis . The Company reviews long-lived assets and asset groups, including intangible assets , for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recove rable and exceeds the asset or asset group’s fair value. Certain long-lived assets, such as capitalized software development costs, are included in Premises and equipment. The Company reviews these assets for impairment using the same impairment methodology used for intangible assets. Premises and Equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements. Premises are depreciated based upon their estimated useful life at the acquisition date, which generally ranges from 40 to 50 years. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term o f the leased facility or the economic life of the improvement, which ranges from 5 to 10 years. The Company maintains operating leases worldwide for facilities and equipment. Rent expense for facility leases is recognized ratably over the lease term, and includes adjustments for rent concessions, rent escalations and leasehold improvement allowances. The Company recognizes lease restoration obligations at the fair value of the restoration liabilities when incurred, and amortizes the res toration assets over the lease term. Certain costs associated with the acquisition or development of internal-use software are also recorded in Premises and equipment. Once the software is ready for its intended use, these costs are amortized on a straight -line basis over the software’s estimated useful life, generally 5 years. Other Significant Accounting Policies The following table identifies the Company’s other significant accounting policies, the Note and page where the Note can be found. Note Significant Accounting Policy Number Note Title Page Accounts Receivable Note 3 Accounts Receivable and Loans Page 116 Loans Note 3 Accounts Receivable and Loans Page 116 Reserves for Losses Note 4 Reserves for Losses Page 124 Investment Securities Note 5 Investment Securities Page 126 Asset Securitizations Note 6 Asset Securitizations Page 128 Membership Rewards Note 10 Other Liabilities Page 135 Stock-based Compensation Note 11 Stock Plans Page 136 Retirement Plans Note 12 Retirement Plans Page 138 Legal Contingencies Note 13 Commitments and Contingencies Page 138 Derivative Financial Instruments and Hedging Activities Note 14 Derivatives and Hedging Activities Page 140 Fair Value Measurements Note 15 Fair Values Page 144 Income Taxes Note 21 Income Taxes Page 154 Regulatory Matters and Capital Adequacy Note 23 Regulatory Matters and Capital Adequacy Page 157 Reportable Operating Segments Note 25 Reportable Operating Segments and Geographic Operations Page 160 Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting gu idance 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 related 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 does not intend to adopt the new standard early and 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 . In January 2016, the FASB issued new accounting guidance on the recognition and measure ment of financial assets and financial liabilities. The standard, which is effective January 1, 2018, makes targeted changes to current GAAP, specifically to the classification and measurement of equity securities, and to certain disclosure requirements as sociated with the fair value of financial instruments. The Company is currently evaluating the impact this guidance will have on its financial position, results of operations a nd cash flows, among other items . Classification of Various Items 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 reclassified to conform to the current period presentation. None of the prior period financial statements were materially misstated from these misclassifications. Certain other insignificant reclassifications of prior period amounts have been made to conform to the current period presentation. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Acquisitions | NOTE 2 BUSINESS EVENTS Global Business Travel TRANSACTION 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 Sheets. Prior to the deconsolidation, the carrying amount of GBT’s asse ts and liabilities were not material to the Company’s financial position and its operations were reported within the Global Commercial Services (GCS) segment. LOANS AND RECEIVABLES Held for sale During the fourth quarter of 2015, it was determined the Company would sell the Card Member loans and receivables related to its cobrand partnerships with Costco Wholesale Corporation (Costco) in the United States and JetBlue Airways Corporation (JetBlue) (the HFS portfolios). The sale of the JetBlue portfolio i s subject to customary closing conditions, and is expected to be consummated in the first quarter of 2016. The sale of the Costco portfolio is subject to the outcome of ongoing discussions, and is expected to be consummated around mid-year 2016. The gains on the sales of the two portfolios will be recognized upon consummation of the sales. As a result of the determination, the HFS portfolios are presented as held for sale (HFS) on the Consolidated Balance Sheets within Card Member loans and receivables HF S. The HFS portfolios were transferred at the net carrying amount, inclusive of the related reserves for losses of $0.2 billion, which approximates the lower of cost or fair value in the aggregate, and which will also be the measurement basis applied until consummation of the sales. Card Member loans and receivables HFS at December 31, 2015, totaled $15.0 billion, of which $13.9 billion relates to the Costco portfolio and $1.1 billion relates to the JetBlue portfolio. Changes in the valuation of the HFS por tfolios are recognized in Other expenses beginning on December 1, 2015. The Company will continue to recognize discount revenue, interest income, and other revenues and expenses related to the portfolios in the respective income statement line items while the portfolios are HFS . GOODWILL AND TECHNOLOGY Impairment As discussed in Note 1, the Company evaluates goodwill for impairment annually, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of the Company’s reporting units below its carrying value. Based on its annual assessment, the Company determined that goodwill was not impaired. During the fourth quarter of 2015, the Company announced changes to its management organizational structure under which reconsideration of the Company’s Prepaid Services business (a reporting unit within Enterprise Growth (EG), which is included in Corporate and Other) , occurred. As a result, the Company determined that sufficient indicators of potent ial impairment of goodwill existed and performed an impairment evaluation. In performing the two-step impairment evaluation, it was determined the carrying value of the Prepaid Services business’ goodwill exceeded its implied fair value and the Company rec ognized an impairment loss. The fair value of the Prepaid Services business asset group was measured based on an income approach (discounted cash flow valuation methodology), with the assistance of a third-party valuation firm. Prior to completing the asse ssment of goodwill for impairment, the Company performed a recoverability test of certain long-lived assets in the Prepaid Services business and determined that certain long-lived assets, primarily technology assets, were not recoverable. As a result, duri ng the fourth quarter of 2015, the Company recorded a $384 million impairment charge, comprising a $219 million write - down of the entire balance of goodwill in the Prepaid Services business and a $165 million write-down of technology and other assets to f air value. These charges are reported in Other expenses. |
Accounts Receivable and Loans
Accounts Receivable and Loans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Accounts Receivable and Loans | NOTE 3 Accounts Receivable and Loans The Company’s charge and lending payment card products result in the generation of Card Member receivables and Card Member loans , respectively. This Note is presented excluding amounts associated with the Card Member loans and receivables HFS as of December 31, 2015 . Card Member and Other Receivables Card Member receivables , represent ing amounts due on charge card products, are recorded at the time a Card Member enters into a point-of-sa le transaction with a merchant. Each cha rge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are establish ed to limit the maximum exposure for the Company. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for losse s (refer to Note 4), and include principal and any related accrued fees. Accounts receivable by segment as of December 31, 2015 and 2014 consisted of: (Millions) 2015 2014 U.S. Card Services (a) $ 23,255 $ 22,468 International Card Services 6,975 7,653 Global Commercial Services (b) 13,777 14,583 Global Network & Merchant Services (c) 126 147 Card Member receivables (d) 44,133 44,851 Less: Reserve for losses 462 465 Card Member receivables, net $ 43,671 $ 44,386 Other receivables, net (e) $ 3,024 $ 2,614 Includes $ 6.6 billion and $ 7.0 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2015 and 2014 , respectively . Includes $ 319 million and $ 636 million due from airlines, of which Delta Air Lines (Delta) comprises $ 257 million and $ 606 million as of December 31, 2015 and 2014 , respectively. Includes receivables primarily related to the Company’s International Currency Card portf olios. Includes approximately $ 11.9 billion and $ 13.3 billion of Card Member receivables outside the United States as of December 31, 2015 and 2014 , respectively . Other receivables primarily represent amounts related to ( i ) certain merchants for billed discount revenue and (ii) GNS partner banks for items such as royalty and franchise fees . Other receivables are presented net of reserves for losses of $ 43 million and $ 61 million as of December 31, 2015 and 2014 , respectively. Ca rd Member and Other Loans Card Member loans , represent ing revolving amounts due on lending card products, are recorded at the time a Card Member enters into a point-of-sale transaction w ith a merchant, as well as amounts due from charge Card Members who utilize the lending-on-charge feature on their account and elect to revolve a portion of the outstanding balance by enter ing into a revolving payment arrangement with the Company . These lo ans have a range of terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members and in accordance with applicable regulations and the respective product’s terms and co nditions. Card Members holding revolving loans are typically required to make monthly payments based on pre-established amounts. The amounts that Card Members choose to revolve are subject to finance charges. Card Member loans are presented on the Consolid ated Balance Sheets net of reserves for losses (refer to Note 4), and include principal, accrued interest and fees receivable. The Company’s policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and es tablish reserves for interest that the Company believes will not be collected. Loans by segment as of December 31, 2015 and 2014 consisted of: (Millions) 2015 2014 U.S. Card Services (a) $ 51,446 $ 62,592 International Card Services 7,072 7,744 Global Commercial Services 55 49 Card Member loans 58,573 70,385 Less: Reserve for losses 1,028 1,201 Card Member loans, net $ 57,545 $ 69,184 Other loans, net (b) $ 1,254 $ 920 Includes approximately $ 23.6 billion and $ 30.1 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2015 and 2014 , respectively. Other loans primarily represent loans to merchants . Other loans are presented net of reserves for losses of $ 20 million and $ 12 million as of December 31, 2015 and 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 af ter the billing statement date. The following table presents the aging of Card Member loans and receivables as of December 31, 2015 and 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 $ 50,929 $ 154 $ 112 $ 251 $ 51,446 International Card Services 6,961 34 25 52 7,072 Card Member Receivables: U.S. Card Services $ 22,896 $ 118 $ 73 $ 168 $ 23,255 International Card Services 6,875 28 21 51 6,975 Global Commercial Services (a) (b) (b) (b) 124 13,777 30-59 60-89 90+ Days Days Days Past Past Past 2014 (Millions) Current Due Due Due Total Card Member Loans: U.S. Card Services $ 61,995 $ 179 $ 128 $ 290 $ 62,592 International Card Services 7,621 39 27 57 7,744 Card Member Receivables: U.S. Card Services $ 22,096 $ 129 $ 72 $ 171 $ 22,468 International Card Services 7,557 29 20 47 7,653 Global Commercial Services (a) (b) (b) (b) 120 14,583 For Card Member receivables in GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes . Delinquency data for periods other than 90 days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances . Credit Quality Indicators for Card Member Loans and Receivables The following table s present the key credit quality indicators as of or for the years ended December 31 : 2015 2014 Net Write-Off Rate Net Write-Off Rate 30+ 30+ Principal, Days Past Due Principal, Days 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 % 1.5 % 1.7 % 1.0 % International Card Services 1.9 % 2.4 % 1.6 % 2.0 % 2.4 % 1.6 % Card Member Receivables: U.S. Card Services 1.7 % 1.9 % 1.5 % 1.6 % 1.8 % 1.7 % International Card Services 2.0 % 2.2 % 1.4 % 1.9 % 2.1 % 1.3 % 2015 2014 Net Loss Net Loss Ratio as 90+ Ratio as 90+ a % of Days Past Billing a % of Days Past Billing Charge as a % of Charge as a % of Volume Receivables Volume Receivables Card Member Receivables: Global Commercial Services 0.09 % 0.9 % 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, b ecause the Company considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. The year ended December 31, 2015, reflects the impact of a change in the timing of charge-offs for Card Member loans and receivables in certain modification programs from 180 days past due to 120 days past due, which was fully recognized during the three months ended March 31, 2015 . Refer to Note 4 for additional indicators, including external environmental qualitative factors, management considers in its monthly e valuation process for reserves for losses. Impaired Card Member Loans and Receivables Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that the Company will be unable to collect all amounts due according to the original contractual term s of the Card Member agreement. The Company considers impaired loans and receivables to include: ( i ) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receivables modifi ed as troubled debt restructurings (TDRs). The Company may modify, through various programs, Card Member loans and receivables in instances where the Card Member is experiencing financial difficulty in order to minimize losses and improve collectability, while providing Card Members with temporary or permanent financial relief. The Company has classified Card Member loans and receivables in these modification programs as TDRs. Beginning January 1, 2015, on a prospective basis the Company continues to class ify Card Member accounts that have exited a modification program as a TDR, with such accounts iden tified as “Out of Program TDRs.” Such modifications to the loans and receivables primarily include ( i ) temporary interest rate reductions (possibly as low as zero percent, in which case t he loan is characterized as non- accrual in the Company’s TDR disclosures), (ii) placing the Card Member on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the Card Member exits the modifi cation program. Upon entering the modification program, the Card Member’s ability to make future purchases is either cancelled, or in certain cases suspended until the Card Member successfully exits the modification program. In accordance with the modific ation agreement with the Card Member, loans may revert back to the original contractual terms (including the contractual interest rate) when the Card Member exits the modification program, which is ( i ) when all payments have been made in accordance with th e modification agreement or, (ii) when the Card Member defaults out of the modification program. The Company establishes a reserve for Card Member interest charges and fees considered to be uncollectible. Reserves for Card Member loans and receivables mod ified as TDRs are determined as the difference between the cash flows expected to be received from the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying val ue of the related Card Member loan or receivable balance. The Company determines the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest rate. All changes in the impairment measurement are include d in the P rovision s for losses in the Consolidated Statements of Income. The following table s provide additional information with respect to the Company’s impaired Card Member loans and receivables . Impaired Card Member loans are not significant for GCS and impaired Card Member receivables are not significant for International Card Services (ICS) and GCS; therefore, these segments are not included in the following tables. As of December 31, 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 $ 164 $ 150 $ 172 $ 107 $ 593 $ 548 $ 53 International Card Services 52 ― ― ― 52 51 ― Card Member Receivables: U.S. Card Services ― ― 27 6 33 33 20 Total $ 216 $ 150 $ 199 $ 113 $ 678 $ 632 $ 73 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 As of December 31, 2013 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 $ 167 $ 294 $ 351 $ 812 $ 775 $ 78 International Card Services 54 4 5 63 62 ― Card Member Receivables: U.S. Card Services ― ― 50 50 49 38 Total $ 221 $ 298 $ 406 $ 925 $ 886 $ 116 The Company’s policy is generally to accrue interest through the date of write-off (typically 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 primarily 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 $ 20 million, $26 million and $ 29 mi l l ion that are over 90 days past due and accruing interest and $ 18 million, $ 34 millio n and $ 43 million that are non-accrual as of December 31, 2015 , 2014 and 2013, respectively . In Program TDRs include Card Member accounts that are currentl y enrolled in a modification program. Out of Pro gram TDRs include $84 million of Card Member accounts that have successfully complete d a modification program and $29 million of Card Member accounts that were not in compliance with the terms of the modification program s. The following table provides information with respect to the Company’s average balances of, and interest income recognized from, impaired Card Member loans and the average balances of impaired Card Member receivables for the years ended December 31: Average Interest Income 2015 (Millions) Balance Recognized Card Member Loans: U.S. Card Services $ 673 $ 59 International Card Services 54 14 Card Member Receivables: U.S. Card Services 33 ― Total $ 760 $ 73 Average Interest Income 2014 (Millions) Balance Recognized Card Member Loans: U.S. Card Services $ 750 $ 49 International Card Services 62 16 Card Member Receivables: U.S. Card Services 47 ― Total $ 859 $ 65 Average Interest Income 2013 (Millions) Balance Recognized Card Member Loans: U.S. Card Services $ 948 $ 46 International Card Services 67 16 Card Member Receivables: U.S. Card Services 81 ― Total $ 1,096 $ 62 Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to the U.S. Card Services ( USCS ) Card Member loans and receivables modified as TDRs for the year s ended December 31, 2015, 2014 and 2013 . 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 . Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions 2015 (in thousands) ($ in millions) (% points) (# of months) Troubled Debt Restructurings: Card Member Loans 40 $ 285 9 (b) Card Member Receivables 12 147 (c) 12 Total 52 $ 432 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions 2014 (in thousands) ($ in millions) (% points) (# of months) Troubled Debt Restructurings: Card Member Loans 46 $ 342 10 (b) Card Member Receivables 15 176 (c) 12 Total 61 $ 518 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions 2013 (in thousands) ($ in millions) (% points) (# of months) Troubled Debt Restructurings: Card Member Loans 60 $ 448 10 (b) Card Member Receivables 20 247 (c) 12 Total 80 $ 695 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. For the year ended December 31, 2013, i n certain modifications, the principal balance was reduced in the aggregate by $4 million . For the years ended December 31, 2015 and 2014, m odifications 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 years ended December 31, 2015 , 2014 and 2013 , with respect to the USCS Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification . A Card Member is considered in default of a modification program after one and up to two consecutive missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables . Outstanding Number of Balances Accounts Upon Default 2015 (thousands) (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 8 $ 52 Card Member Receivables 3 5 Total 11 $ 57 Outstanding Number of Balances Accounts Upon Default 2014 (thousands) (b) (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 8 $ 52 Card Member Receivables 3 12 Total 11 $ 64 Outstanding Number of Balances Accounts Upon Default 2013 (thousands) (millions) (a)(b) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 18 $ 141 Card Member Receivables 3 25 Total 21 $ 166 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans , and principal and fees on Card Member receivables . The number of accounts and 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 | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Reserve for Losses | NOTE 4 Reserves for Losses R eserves 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. Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantit ative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates , loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitative reserves for certain external and internal qualitative factors , which may increase or decrease the reserves for losses on Card Member receivables and loans. These external factors include employment, spend, sentiment, housing and c redit, and changes in the l egal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member receivables or loans , and net write-off coverage ratios . Card Member receivables and loans balances are written off when management considers amounts to be uncollectible , which is generally determined by the number of days past due and is typically no later than 180 days past due . Card Member r eceivables and loans in bankruptcy or owe d by deceased individuals are generally written off upon notification , and r ecoveries are recognized as they are collected . This Note is p resented excluding amounts associated with the Card Member loans and receivables HFS as of December 31, 2015 . Changes in Card Member Receivables Reserve for Losses The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31: (Millions) 2015 2014 2013 Balance, January 1 $ 465 $ 386 $ 428 Provisions (a) 737 792 648 Net write-offs (b) (713) (683) (669) Other (c) (27) (30) (21) Balance, December 31 $ 462 $ 465 $ 386 Provisions for principal and fee reserve components. C onsist s of principal and fee components, less recoveries of $ 401 million, $ 358 million and $ 402 million , including net write-offs from TDRs of $ 60 million, $ 15 million and $ 12 million, for the years ended December 31, 2015 , 2014 and 2013 , respectively . I ncludes foreign currency translation adjustments of $ (16) million, $ (15) million and $ (4) million for the years ended December 31, 2015 , 2014 and 2013 , respectively; and other adjustment s of $ (11) million, $ (8) million and $ (17) million for the years ended December 31, 2015 , 2014 and 2013 , respectively . Additionally , 2015 includes the impact of the transfer of the HFS receivables portfolio, which was not significant , and 2014 includes an adjustment related to reserves for card-related fraud losses of $(7) million, whic h was reclassified to O ther liabilities. Card Member Receivables Evaluated Individually and Collectively for Impairment The fo llowing table presents Card Member receivables evaluated individually and collectively for impairment, and related reserves, as of December 31: (Millions) 2015 2014 2013 Card Member receivables evaluated individually for impairment (a) $ 33 $ 48 $ 50 Related reserves (a) $ 20 $ 35 $ 38 Card Member receivables evaluated collectively for impairment $ 44,100 $ 44,803 $ 44,113 Related reserves (b) $ 442 $ 430 $ 348 Re presents 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 years ended December 31: (Millions) 2015 2014 2013 Balance, January 1 $ 1,201 $ 1,261 $ 1,471 Provisions (a) 1,190 1,138 1,115 Net write-offs Principal (b) (967) (1,023) (1,141) Interest and fees (b) (162) (164) (150) Transfer of reserves on HFS loan portfolios (224) ― ― Other (c) (10) (11) (34) Balance, December 31 $ 1,028 $ 1,201 $ 1,261 Provisions for principal interest and fee reserve components . Co nsists of principal write-offs, less recoveries of $ 418 million, $ 428 million and $ 452 million, including net write-offs /( recoveries) from TDRs of $ 41 million , $ (10) million and $ (1) million, for the years ended December 31 , 2015 , 2014 and 2013 , respectively. Recoveries of interest and fees were de minimis . I nclude s foreign currency translation adjustment s of $ (20) million, $ (17) million and $ (12) million for the years ended December 31 , 2015 , 2014 and 2013 , respectively, and other adjustment s of $ 10 million, $ 12 m illion and $ (22) million for the years ended December 31 , 2015 , 2014 and 2013 , respectively. Additionall y, 2014 includes an adjustment related to reserves for card-related fraud losses of $(6 ) million , which were reclassified to O ther liabilities. Card Member Loans Ev aluated Individually and Collectively for Impairment The following table presents Card Member loans evaluated individually and collectively for impairment , and related reserves , as of December 31: (Millions) 2015 2014 2013 Card Member loans evaluated individually for impairment (a) $ 279 $ 286 $ 356 Related reserves (a) $ 53 $ 67 $ 78 Card Member loans evaluated collectively for impairment (b) $ 58,294 $ 70,099 $ 66,882 Related reserves (b) $ 975 $ 1,134 $ 1,183 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans , and reserves for internal and external qualitative risk factors that apply to loans that are collect ively evaluated for impairment. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Investment Securities | NOTE 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. Refer to Note 15 and Note 19 for a description of the Company’s methodology for determining the fair value of investment securities and gross realized gains on the sale of investment securities, respectively . The following is a summary of investment securities as of December 31: 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 $ 2,813 $ 85 $ (5) $ 2,893 $ 3,366 $ 129 $ (2) $ 3,493 U.S. Government agency obligations 2 ― ― 2 3 ― ― 3 U.S. Government treasury obligations 406 4 (1) 409 346 4 ― 350 Corporate debt securities 29 1 ― 30 37 3 ― 40 Mortgage-backed securities (a) 117 4 ― 121 128 8 ― 136 Equity securities (b) 1 ― ― 1 ― 1 ― 1 Foreign government bonds and obligations 250 6 (1) 255 350 9 ― 359 Other (c) 50 ― (2) 48 50 ― (1) 49 Total $ 3,668 $ 100 $ (9) $ 3,759 $ 4,280 $ 154 $ (3) $ 4,431 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. 2013 amount primarily represents the Company’s investment in the Industrial and Commercial Bank of China (ICBC), the remaining amount of which was sold in the third quarter of 2014 . 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 December 31 : 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 $ 100 $ (3) $ 13 $ (2) $ ― $ ― $ 72 $ (2) U.S. Government treasury obligations 253 (1) ― ― ― ― ― ― Foreign government bonds and obligations 99 (1) ― ― ― ― ― ― Other ― ― 33 (2) ― ― 33 (1) Total $ 452 $ (5) $ 46 $ (4) $ ― $ ― $ 105 $ (3) The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost , as of December 31: Less than 12 months 12 months or more Total Gross Gross Gross Ratio of Fair Value to Number of Estimated Unrealized Number of Estimated Unrealized Number of Estimated Unrealized Amortized Cost (Dollars in millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2015: 90%–100% 52 $ 450 $ (5) 15 $ 37 $ (2) 67 $ 487 $ (7) Less than 90% ― ― ― 2 9 (2) 2 9 (2) Total as of December 31, 2015 52 $ 450 $ (5) 17 $ 46 $ (4) 69 $ 496 $ (9) 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 compared to those prevailing when the investment securities were acquired . Overall, for the investment securities in gross unrealized loss positions, ( i ) the Company does not intend to sell the investment s ecurities, (ii ) it is more likely than not that the Company w ill not be required to sell the investment securities before recovery of the unrealized losses , and (iii ) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no o ther-than-temporary impairment during the periods presented . Weighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2015 were as follows: Due after 1 Due after 5 Due within year but years but Due after (Millions) 1 year within 5 years within 10 years 10 years Total State and municipal obligations (a) $ 23 $ 61 $ 277 $ 2,532 $ 2,893 U.S. Government agency obligations ― ― ― 2 2 U.S. Government treasury obligations 120 144 132 13 409 Corporate debt securities 6 24 ― ― 30 Mortgage-backed securities (a) 1 ― ― 120 121 Foreign government bonds and obligations 190 23 ― 42 255 Total Estimated Fair Value $ 340 $ 252 $ 409 $ 2,709 $ 3,710 Total Cost $ 340 $ 247 $ 395 $ 2,635 $ 3,617 Weighted average yields (b) 2.86 % 2.78 % 5.48 % 6.58 % 5.85% 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. Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent. |
Asset Securitizations
Asset Securitizations | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Asset Securitizations | NOTE 6 Asset Securitizations The Company periodically securitizes Card Member receivables and loans arising from its card business , including Card Member loans and receivables HFS, through the transfer of those assets to securitization trusts. The trusts then issue debt securities to third-party investors, collateralized by the transferred assets. Card Member receivables are transferred to the American Express Issuance Trust II ( the Charge Trust). Card Member loans are transferred to the American Express Credit Account Master Trust (the Lending Trust , collectively the Trusts ). The Trust s are consolidated by American Express Travel Related Services Company, Inc. (TRS), which is a c onsolidated subsidiary of the Company. The T rusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member receivables and loans. Det ails on the principl e s of consolidation can be found in the summary of significant accounting policies (refer to Note 1). TRS, in its role as servicer of the Trust s , has the power to direct the mo st significant activity of the T rusts, which is the collection of the underlying Card Member receivables and loans . In addition, TRS , excluding its consolidated subsidiaries, owned approximately $ 1.0 billion of subordinated securities issued by the Lending Trust as of December 31 , 2015 . These subordinated securities have the obligation to absorb losses of the Lending Trust and p rovide the right to receive benefits from the Lending Trust, both of which are significant to the VIE . TRS’ role as servicer for the Charge Trust does n ot provide it with a significant obligation to absorb losses or a significant right to receive benefits. However, TRS’ position as the parent company of the entities that transferred the receivables to the Charge Trust makes it the party most closely relat ed to the Charge Trust . Based on these considerations, TRS is the primary beneficiary of both Trusts. The debt securities issued by the Trust s are non-recourse to the Company. The s ecuritized Card Member receivables and loans held by the Charge Trust and t he Lending Trust , respectively, are available only for payment of the debt securities or other obligations issued or arising in th e securitization transactions (refer to Note 3). The long-term debt of each T rust is payable only out of collections on their respective underlying securitized assets (refer to Note 9). The following table presents the restricted cash held by the Charge Trust and the Lending Trust as of December 31, 2015 and 2014 , included in Other Assets on the Company’s Consolidated Balance Sheets: (Millions) 2015 2014 Charge Trust $ 2 $ 2 Lending Trust 153 62 Total $ 155 $ 64 These amounts relate to collections of Card Member receivables and loans to be used by the Trusts to fund future expenses and obligations, including credit losses , interest pa id on the debt securities and upcoming debt maturities . Under the respective terms of the Charge Trust and the Lending Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve fun ds, or , in a worst-case scenario, early amortization of i nvestor debt securities. During the year ended December 31, 2015 , no such triggering events occurred . |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Other Assets | NOTE 7 Other Assets The following is a summary of O ther assets as of December 31: (Millions) 2015 2014 Goodwill $ 2,749 $ 3,024 Deferred tax assets, net (a) 2,231 2,110 Prepaid expenses (b) 851 1,626 Other intangible assets, at amortized cost 796 854 Community Reinvestment Act Tax Credit investments 638 622 Restricted cash (c) 477 384 Derivative assets (a) 282 711 Other 2,045 2,011 Total $ 10,069 $ 11,342 Refer to Notes 14 and 21 for a discuss ion of derivative assets and deferred tax assets, net , respectively, as of December 31, 2015 and 2014 . For 2015 and 2014 , $80 million and $96 million, respectively, of foreign deferred tax liabilities is reflected in Other Liabilities. Derivative assets reflect the impact of master netting agreements. Includes prepaid miles and reward points acquired primarily from airline partners of approximately $ 0.3 billion and $ 1.1 billion as of December 31, 2015 and 2014 , respectively, including approximately nil and $ 0.6 billion, respectively, from Delta. Includes restricted cash of approximately $ 155 m illion and $ 64 million as of December 31, 2015 and 2014 , respectively, which is primarily held for coupon and certain asset-backed securitization maturities. Goodwill The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments and Corporate & Other were as follows: Corporate & (Millions) USCS ICS GCS GNMS Other Total Balance as of January 1, 2014 $ 174 $ 1,052 $ 1,543 $ 160 $ 269 $ 3,198 Acquisitions ― ― ― ― ― ― Dispositions ― ― (102) ― ― (102) Other, including foreign currency translation ― (70) ― ― (2) (72) Balance as of December 31, 2014 $ 174 $ 982 $ 1,441 $ 160 $ 267 $ 3,024 Acquisitions ― ― ― ― ― ― Dispositions ― ― ― ― ― ― Other, including impairment and foreign currency translation (a) ― (53) ― ― (222) (275) Balance as of December 31, 2015 $ 174 $ 929 $ 1,441 $ 160 $ 45 $ 2,749 Includes a $219 million impairment charge within Corporate & Other . Refer to Note 2 for additional information. A ccumulated impairment los s es were $219 million as of December 31, 2015, and nil as of December 31, 201 4 and December 31, 2013 . Other Intangible Assets The components of other intangible assets were as follows: 2015 2014 (Millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships (a) $ 1,506 $ (836) $ 670 $ 1,455 $ (754) $ 701 Other 231 (105) 126 255 (102) 153 Total $ 1,737 $ (941) $ 796 $ 1,710 $ (856) $ 854 Includes net intangibles related to airline partners of $ 255 million and $ 340 million as of December 31, 2015 and 2014 , respectively, including approximately $ 165 million and $ 206 million, respectively, related to Delta. Amortization expense for the years ended December 31, 2015 , 2014 and 2013 was $ 183 million, $ 174 million and $ 193 million, respectively. Intangible assets acquired in 2015 and 2014 are being amortized, on average, over 5 and 7 years, respectively. Estimated amortization expense for other intangible assets over the next five years is as follows: (Millions) 2016 2017 2018 2019 2020 Estimated amortization expense $ 174 $ 156 $ 146 $ 106 $ 76 COMMUNITY REINVESTMENT ACT TAX CREDIT INVESTMENTS The Company accounts for its investments in Qualified Affordable Housing (QAH) and other tax credit investment s using the equity method of accounting. The Company had $ 638 million and $ 622 million in tax credit investments as of December 31, 2015 and 2014 , respectively, included in O ther assets on the Consolidated Balance Sheets , o f which $578 million and $522 million , respectively, specifically related to QAH investment s. A s of December 31, 2015 , the Company has committed to provide funding related to certain of these investments, resulting in a $139 million unfunded commitment reported in Other liabilities , which is expected to be paid between 2016 and 2029. In addition, the Company has contractual off-balance sheet obligations , which were not deemed probable of being drawn, whereby it may provide additional funding up to $200 million for these QAH investments as of December 31, 2015. During the years ended December 31, 2015 and 2014 , the Company recognized equity me thod losses related to these QAH investments of $50 million and $48 million, respectively, which w ere recognized in Other expenses; and associated tax credits of $53 million and $47 million, respectively, recognized in Income tax provision. OTHER In 2014, the Company received $990 million in net cash proceeds for the sale of its equity method investment in Concur Technologies (Concur) with a carrying amount of $246 million and recognized a gain of $744 million in Other revenues . |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Customer Deposits | NOTE 8 Customer D eposits As of December 31 , customer deposits we re categorized as interest-bearing or non-interest - bearing as follows : (Millions) 2015 2014 U.S.: Interest-bearing $ 54,102 $ 43,279 Non-interest-bearing (includes Card Member credit balances of: 2015, $389 million; 2014, $372 million) 478 418 Non-U.S.: Interest-bearing 82 115 Non-interest-bearing (includes Card Member credit balances of: 2015, $323 million; 2014, $347 million) 335 359 Total customer deposits $ 54,997 $ 44,171 Customer deposits by deposit type as of December 31 were as follows: (Millions) 2015 2014 U.S. retail deposits: Savings accounts ― Direct $ 29,023 $ 26,159 Certificates of deposit: Direct 281 333 Third-party (brokered) 13,856 7,838 Sweep accounts ―Third-party (brokered) 10,942 8,949 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 183 173 Card Member credit balances ― U.S. and non-U.S. 712 719 Total customer deposits $ 54,997 $ 44,171 The scheduled maturities of certificates of deposit as of December 31, 2015 we re as follows: (Millions) U.S. Non-U.S. Total 2016 $ 2,486 $ 7 $ 2,493 2017 3,630 ― 3,630 2018 3,180 ― 3,180 2019 2,326 ― 2,326 2020 2,515 ― 2,515 Total $ 14,137 $ 7 $ 14,144 As of December 31 , certificates of deposit in denominations of $25 0,000 or more , in the aggregate, were as follows: (Millions) 2015 2014 U.S. $ 105 $ 111 Non-U.S. 1 17 Total $ 106 $ 128 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Debt Disclosure [Text Block] | NOTE 9 Debt Short-Term Borrowings The Company’s short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2015 2014 (Millions, except percentages) Outstanding Balance Year-End Stated Rate on Debt (a) Outstanding Balance Year-End Stated Rate on Debt (a) Commercial paper $ 2,120 0.38 % $ 769 0.29 % Other short-term borrowings (b)(c) 2,692 1.11 2,711 0.81 Total $ 4,812 0.79 % $ 3,480 0.69 % For floating-rate iss uances, the stated interest rates are weighted based on the outstanding balances and floating rates in effect as of December 31, 2015 and 2014 . Includes interest-bearing overdrafts with banks of $ 410 million and $ 470 million as of December 31, 2015 and 2014 , respectively. In addition, balances include a partially drawn secured borrowing facility (maturing on September 15, 2017) , certain book overdrafts (i.e., primarily timing differences arising in the ordin ary course of business), short-term borrowings from banks, as well as interest-bearing amounts due to merchants in accordance with merchant service agreements. The secured borrowing facility gives the Company the right to sell up to $ 2.0 billion fa ce amount of eligible certificates issued from the Lending Trust. The Company paid $ 6.7 million and $ 7.0 million in fees to maintain the secured borrowing facility in 2015 and 2014 , respectively. Long- t erm Debt The Compa ny’s long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2015 2014 (Millions, except percentages) Original Contractual Maturity Dates Outstanding Balance (a) Year-End Stated Rate on Debt (b) Year-End Effective Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Stated Rate on Debt (b) Year-End Effective Interest Rate with Swaps (b)(c) American Express Company (Parent Company only) Fixed Rate Senior Notes 2016-2042 $ 7,546 5.15 % 4.25 % $ 7,535 5.15 % 4.20 % Floating Rate Senior Notes 2018 850 0.97 ― 850 0.85 ― Subordinated Notes (d) 2024-2036 1,347 5.39 4.47 1,350 5.39 4.42 American Express Credit Corporation Fixed Rate Senior Notes 2016-2020 16,469 2.16 1.28 16,260 2.26 1.22 Floating Rate Senior Notes 2016-2020 5,300 0.98 ― 4,400 0.82 ― Borrowings under Bank Credit Facilities ― ― ― ― 3,672 4.25 ― American Express Centurion Bank Fixed Rate Senior Notes 2017 1,319 5.99 4.75 2,089 4.12 3.32 Floating Rate Senior Notes 2018 125 0.81 ― 675 0.68 ― American Express Bank, FSB Fixed Rate Senior Notes 2017 1,000 6.00 ― 999 6.00 ― Floating Rate Senior Notes 2017 300 0.62 ― 300 0.46 ― American Express Charge Trust II Floating Rate Senior Notes 2018 2,200 0.67 ― 3,700 0.41 ― Floating Rate Subordinated Notes 2018 87 0.97 ― 87 0.80 ― American Express Lending Trust Fixed Rate Senior Notes 2016-2017 4,000 1.35 ― 6,100 1.11 ― Floating Rate Senior Notes 2017-2019 7,025 0.82 ― 8,876 0.72 ― Fixed Rate Subordinated Notes ― ― ― ― 300 1.08 ― Floating Rate Subordinated Notes 2017-2019 316 0.97 ― 488 0.73 ― Other Fixed Rate Instruments (e) 2021-2033 29 5.62 ― 143 3.09 ― Floating Rate Borrowings 2016-2019 244 0.66 ― % 247 0.59 ― % Unamortized Underwriting Fees (96) (116) Total Long-Term Debt $ 48,061 2.44 % $ 57,955 2.34 % The outstanding balances include ( i ) unamortized discount and premium, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Under fair value hedge accounting, the outstanding balances on these fixed-rate notes are adjusted to reflect the impact of changes in fair value due to changes in interest rates. Refer to No te 14 for more details on the Company’s treatment of fair value hedges. For floating-rate issuances, the stated and effective interest rates are weighted based on the outstanding balances and floating rates in effect as of December 31, 2015 and 2014 . Effective interest rates are only presented when swaps are in place to hedge the underlying debt. For the $ 750 million of subordinated debentures issued in 2006 and outstanding as of December 31, 2015 , the maturity date will automatically be extended to September 1, 2066, except in the case of either ( i ) a prior redemption or (ii) a default. At the Company’s option, the subordinated debentures are redeemable for cash on or after September 1, 2016, at 100 percent of the principal amounts plus an y accrued but unpaid interest. Includes $ 29 million and $ 31 million as of December 31, 2015 and 2014 , respectively, related to capitalized lease transactions. As of December 31, 2015 and 2014 , the Company had $ 750 million principal outstanding of Subordinated Debentures that accrue interest at an annual rate of 6.8 percent until September 1, 2016 , and at an annual rate of three-month LIBOR plus 2.23 percent thereafter. As noted above, at the Company’s option, these Subordinated Debentures are redeemable for cash after September 1, 2016 at 100 percent of the principal amount plus any a ccrued but unpaid interest. The Company currently intends to exercise this redemption option subject to business and market conditions. If the Company fails to achieve specified performance measures, it will be required to issue common shares and apply the net proceeds to make interest payments on these Subordinated Debentures. No dividends on the Company’s common or preferred shares could be paid until such interest payments are made. The Company would fail to meet these specific performance measures if ( i ) the Company’s tangible common equity is less than 4 percent of total adjusted assets for the most recent quarter or (ii) if the trailing two quarters’ consolidated net income is equal to or less than zero and tangible common equity as of the tr igger determination date, and as of the end of the quarter end six months prior, has in each case declined by 10 percent or more from tangible common equity as of the end of the quarter 18 months prior to the trigger determination date. T he Company met the specified performance measures in 2015 . The Company issued $ 600 million of 3.6 percent subordinated notes on December 5, 2014 that are senior in right of payment to the outstanding $ 750 million of Subordinated Deben tures. Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2015 were as follows: (Millions) 2016 2017 2018 2019 2020 Thereafter Total American Express Company (Parent Company only) (a) $ 1,350 $ 1,500 $ 3,851 $ 641 $ ― $ 3,147 $ 10,489 American Express Credit Corporation 4,931 4,900 3,614 4,150 4,150 ― 21,745 American Express Centurion Bank ― 1,300 125 ― ― ― 1,425 American Express Bank, FSB ― 1,300 ― ― ― ― 1,300 American Express Charge Trust II ― ― 2,287 ― ― ― 2,287 American Express Lending Trust 500 6,639 2,885 1,317 ― ― 11,341 Other 33 83 124 4 ― 29 273 $ 6,814 $ 15,722 $ 12,886 $ 6,112 $ 4,150 $ 3,176 $ 48,860 Unamortized Underwriting Fees (96) Unamortized Discount and Premium (890) Impacts due to Fair Value Hedge Accounting 187 Total Long-Term Debt $ 48,061 The Company currently intends to exercise its redemption option related to the $750 million of Subordinated Debentures, subject to business and market conditions. As of December 31, 2015 , the Company maintained a bank line of credit of $ 3.0 billion compared to bank lines of credit of $ 6.7 billion as of December 31, 2014 . Of the total credit lines, $ 3.0 billion was undrawn as of both December 31, 2015 and 2014 . These undrawn amounts support commercial paper borrowi ngs and contingent funding needs. The availability of the credit line is subject to the Company’s compliance with certain financial covenants, principally the maintenance by American Express Credit Corporation ( Credco ) of a 1.25 ratio of combined e arnings and fixed charges, to fixed charges. As of December 31, 2015 and 2014 , the Company was not in violation of any of its debt covenants. Additionally, the Company maintained a 3-year committed, revolving, secured borrowing facility that gives th e Company the right to sell up to $ 3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 15, 2018. As of December 31, 2015 and 2014 , $ 1.0 billion and $ 2.5 billion, respectively, were drawn on this facility. The Company paid $ 35.1 million and $ 49.9 million in fees to maintain these lines in 2015 and 2014 , respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are they dependent on the Company’s credit rating. The Company paid total interest, primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits, of $ 1.6 billion, $ 1.7 billion and $ 2.0 billion in 2015 , 2014 and 2013 , respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Other Liabilities Disclosure [Text Block] | NOTE 10 Other Liabilities The following is a summary of O ther liabilities as of December 31: (Millions) 2015 2014 Membership Rewards liability $ 6,721 $ 6,521 Employee-related liabilities (a) 2,097 2,258 Card Member rebate and reward accruals (b) 2,238 2,073 Deferred card and other fees, net 1,343 1,308 Book overdraft balances 409 647 Other (c) 4,764 5,044 Total $ 17,572 $ 17,851 Employee-related liabilities include employee benefit plan obligations and incentive compensation. Card Member r ebate and reward accruals inclu de payments to third-party reward partners and cash-back reward costs. Other includes accruals for general operating expenses, client incentives , merchant rebates, payments to third - party card-issuing partners, advertising and promotion, restructuring and reengineering reserves , QAH unfunded commitments and derivatives. Membership Rewards The Membership Rewards program al lows enrolled Card Members to earn points that can be redeemed for a broad range of rewards including travel, entertainment, retail certificates and merchandise. The Company records a balance sheet liability that represents management’s best estimate of th e cost of points earned that are expected to be redeemed in the future. The weighted average cost ( WAC ) per point and the Ultimate Redemption Rate ( URR ) are key assumptions used to estimate the Membership Rewards liability. The expense for Membership Rew ards points is included in marketing, promotion, rewards and Card Member services expenses. The Company periodically evaluates its liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner c ontract changes and other factors. Deferred Card and Other Fees, Net The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31, was as follows: (Millions) 2015 2014 Deferred card and other fees (a) $ 1,652 $ 1,615 Deferred direct acquisition costs (173) (176) Reserves for membership cancellations (136) (131) Deferred card and other fees, net $ 1,343 $ 1,308 Includes deferred fees for Membership Rewards program participants. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 11 Stock Plans Stock Option and Award Programs Under the 2007 Incentive Compensation Plan and previously under the 1 998 Incentive Compensation Plan , awards may be granted to employees and other key individuals who perform services for the Company and its participating subsidiaries. These awards may be in the form of stock options, restricted stock awards or units (RSAs), portfolio grants (PGs) or other incentives, and similar awards designed to meet the requirements of non-U.S. jurisdiction s. For the Company’s Incentive Compensation Plans, ther e were a total of 33 million common shares unissued and available for grant as of December 31, 2015 , and 35 million common shares unissued and available for grant as of December 31, 2014 and 2013 , as authorized by the Company’s Board of Directors and shareholders. A summary of stock option and RSA activity as of December 31, 2015 , and changes during the year is presented below: Stock Options RSAs (Shares in thousands) Shares Weighted-Average Exercise Price Shares Weighted- Average Grant Price Outstanding as of December 31, 2014 (a) 13,416 $ 44.88 7,874 $ 64.48 Granted 301 83.30 3,069 81.99 Exercised/vested (2,921) 49.96 (3,003) 55.17 Forfeited (10) 49.22 (507) 75.99 Expired 34 50.04 ― ― Outstanding as of December 31, 2015 10,820 44.60 7,433 $ 74.67 Options vested and expected to vest as of December 31, 2015 10,820 44.60 ― ― Options exercisable as of December 31, 2015 9,809 $ 41.78 ― ― Outstanding as of December 31, 2014 , includes CEO market-based stock options of 687,000 that were previously disclosed separately . The Company recognizes the cost of employee stock awards granted in exchange for employee services based on the grant-date fair value of the award, net of expected forfeitures. Those costs are recognized r atably over the vesting period. Stock O ptions Each stock option has an exercise price equal to the market price of the Company’s common stock on the date of gran t and a contractual term of 10 years from the date of grant. Stock options generally vest 100 percent on the third anniversary of the grant date. The weighted-average remainin g contractual life and the aggregate intrinsic value (the amount by which the fair value of the Company’s stock exceeds the exercise price of the option) of the stock option s outstanding, exercisable, vested , and expected to vest as of December 31, 2015 , are as follows: Outstanding Exercisable Vested and Expected to Vest Weighted-average remaining contractual life (in years) 3.4 2.9 3.4 Aggregate intrinsic value (millions) $ 279 $ 273 $ 279 The intrinsic value of options exercised during 2015 , 2014 and 2013 was $ 87 million, $ 245 million and $ 374 million, respectively, (based upon the fair value of the Company’s stock price at the date of exercise). Cash received from the exercise of stock options in 2015 , 2014 and 2013 was $ 146 million, $ 283 million and $ 580 million, respectively. The tax benefit realized from income tax deductions from stock option exercises, which was recorded in additional paid-in capital, in 2015 , 2014 and 2013 was $ 18 million, $ 54 million and $ 84 million, respectively. The fair value of each option is estimated on the date of grant using a Black- Scholes -Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2015 , 2014 and 2013 , the majority of which were options granted in the beginning of each year: 2015 2014 2013 Dividend yield 1.1 % 1.1 % 1.4 % Expected volatility (a) 37 % 38 % 39 % Risk-free interest rate 1.7 % 2.2 % 1.3 % Expected life of stock option ( in years ) (b) 6.7 6.7 6.3 Weighted-average fair value per option $ 29.20 $ 32.36 $ 21.11 The expected volatility is based on both weighted historical and implied volatilities of the Company’s common stock price. In 2015 , 2014 and 2013 , the expected life of stock options was determined using both historical data and expectations of option exercise behavior. Restricted Stock Awards RSAs are valued based on the stock price on the date of grant , contain either a) service conditions or b) both service and performance conditions, and generally vest 25 percent per year beginning with t he firs t anniversary of the grant date. RSAs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned depends on the achievement of predetermined Company metrics. All RSA holders receive non-forfeitable dividends or dividend equivalents. The total fair value of shares vested during 2015 , 2014 and 2013 was $ 247 million, $ 298 million and $ 336 million, respectively (based upon the Company’s sto ck price at the vesting date). The weighted-average grant date fair value of RSAs granted in 2015 , 2014 and 2013 , is $ 81.99 , $ 86.65 and $ 60.13 , respectively. Liability-based Awards Certain employees are awarded PGs and other incentive awards that can be settled with cash or equity shares at the Company’s discretion and final Compensation and Benefits Committee payout approval. These awards earn value based on performance, market and service conditions, and vest over periods of one to three years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterl y as part of compensation expense over the vesting period. Cash paid upon vesting of these awards in 2015 , 2014 and 2013 was $ 74 million, $ 62 million and $ 43 million , respectively. Summary of Stock Plan Expense The comp onents of the Company’s total stock-based compensation expense (net of forfeitures) for the years ended December 31, are as follows: (Millions) 2015 2014 2013 Restricted stock awards (a) $ 190 $ 193 $ 208 Stock options (a) 12 13 23 Liability-based awards 32 84 119 Total stock-based compensation expense (b) $ 234 $ 290 $ 350 As of December 31, 2015 , the total unrecognized compensation cost related to unvested RSAs and options of $ 214 million and $ 3 million, respectively, will be recognized ratably over the weighted-average remaining vesting period of 2.1 years and 1.2 years, respectively . The total incom e tax benefit recognized in the Consolidated Statements of Income for stock-ba sed compensation arrangements for the years ended December 31, 2015 , 2014 and 2013 was $ 83 million, $ 104 million and $ 127 million, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Retirement Plans | NOTE 12 Retirement Plans Defined Contribution Retirement Plans The Company sponsors defined contribution retirement plans, the principal plan being the Retirement Savings Plan (RSP), a 401(k) savings plan with a profit-sharing component. The RSP is a tax-qualified retirement plan subject to the Employee Retirement Income Securit y Act of 1974 and covers most employees in the United S tates . The total expense for all defined contribution retirement plans globally was $ 224 million, $ 272 million and $ 281 million in 2015 , 2014 and 2013 , respect ively. Defined Benefit Pension and other postretirement benefit Plans The Company’s primary defined benefit pension plans that c over certain employees in the United S tates and United Kingdom are closed to new entrants and existing participants do not accrue any additional benefits. Most employees outside the U nited States and United Kingdom are covered by local retirement plans, some of which are funded, while other employees receiv e payments at the time of retirement or termination under applicable labor laws or agreements. The Company complies with minimum funding requirements in all countries. The Company sponsors unfunded other postretirement benefit plans that provide health car e and life insurance to certain retired U.S. employees. The total expense for these plans was $ 23 million, $ 24 million and $ 59 million in 2015 , 2014 and 2013 , respectively. The Company recognizes the funded sta tus of its defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation , in the Consolidated Balance Sheets. As of December 31, 2015 and 2014 , the funded status related to the defined benefit pension plans and other postretirement benefit plans was underfunded by $ 770 million and $ 767 million, respectively, and is recorded in Other liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Contingencies | NOTE 13 Commitments and Contingencies Legal 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 “Legal Proceedings ”. The Company has recorded reserves for certain of its outstanding legal proceedings. A reser ve is record ed 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, deve lopments 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 range of possible losses, as applicable. The Company’s legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members. These legal proceedings involve various lines of business of the Company and a variety of claims (including, but not limited to, common law tort, contract, a ntitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against the Company specify the damages claimed by the plaintiff 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 unsupported. As a result, some matters have not yet progressed sufficiently thro ugh 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 , while other matters have progressed sufficiently such that the Company is able to estimate a n amount of loss or a range of possible loss . For those disclosed material legal proceedings 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 reserve , and for w hich the Company is able to estimate a range of possible loss, the current estimated range is zero to $ 350 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 significantly. As such proceedings evolve, including the merchant claims described under “Legal Proceedings , ” the Company may need to increase its range of possible loss o r reserves for legal contingencies. Based on its current knowledge, and taking into consideration its litigation-related liabilities, the Company believes it is not a party to, nor are any of its properties the subject of, any legal proceeding that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, it is possible that the outcome of legal proceedings, including the possible resolution of merch ant claims, could have a material impact on the Company’s results of operations. OTHER COMMITMENTS The Company also has obligations to make payments under contractual agreements with certain cobrand partners. The Company expects to fully satisfy these obligations over the remaining term of these agreements as part of the ongoing operations of its business. As of December 31, 2015 , the obligations under such arrangements were as follows : (Millions) 2016 $ 212 2017 76 2018 62 2019 43 2020 20 Thereafter 204 Total $ 617 The Company leases certain facilities and equipment under non-cancelable and cancelable agreements, for which total rental expense was $ 187 million, $ 237 million and $ 281 million in 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , the minimum aggregate rental commitment under all non-cancelable operating leases (net of subleases of $ 37 million) was as follows: (Millions) 2016 $ 165 2017 149 2018 129 2019 105 2020 82 Thereafter 863 Total $ 1,493 As of December 31, 2015 , the Company’s future minimum lease payments under capital leases or other similar arrangements is approximately $ 4 million in 2016 through 2020 , and $ 14 million thereafter. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Derivatives and Hedging Activities | NOTE 14 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 s , 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 rea son, are an integral component of the Company’s market risk management. The Company does not transact in derivatives for trading purposes. Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. The Company’s market risk exposures include : Interest rate risk due to changes in the relationship between interest rates on the Company’s assets (such as loans, receivables and investment securities) and interest rates on the Company’s liabilities (such as debt and deposits); and Foreign ex change risk related to earnings, funding, transactions and investments in currencies other than the U.S. dollar . T he Company centrally monitors market risks using m arket risk limits and escalation triggers as defined in its Asset/Liability Management Policy. The Company’s market exposu res are in large p art by products of the delivery of its products and services. Interest rate risk primarily arises through the funding of Card Member receivables and fixed-rate loans with variable-rate borrowings , as well as through the risk to net interest margin from cha nges in the relationship between benchmark rates such as Prime and LIBOR. Interest rate exposure within the Company’s charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt and deposits compared to fixed-rate debt and deposits. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations, or to convert variable-rate debt obligations to fixed - rate obligations . The Company may change the mix between variable-rate and fixed-rate funding based on changes in business volume s and mix, among other factors. As of December 31, 2015 and 2014 , the Company did not have any designated cash flow hedg es. Foreign exchange risk is generated by Card Member cross-currency charges, foreign currency balance sheet expos ures, foreign subsidiary equity and foreign currency earnings in entities outside the United States . The Company’s foreign exchange risk is managed prim arily by entering into agreements to buy and sell currencies on a spot basis or by hedging this market exposure , to the extent it is economically justified , through various means, including the use of derivatives such as foreign exchange forward s and cross -currency swap contracts . In addition to the exposures mentioned previously, effective August 1, 2011, the Company entered into a total return contract (TRC) to hedge its exposure to changes in the fair value of its equity investment in ICBC in local currency. Under the terms of the TRC, the Company received from the TRC counterparty an amount equivalent to any reduction in the fair value of its investment in ICBC in local currency, and the Company paid to the TRC counterparty an amount equivalent to a ny increase in the fair value of its investment in local currency, along with all dividends paid by ICBC, as well as ongoing hedge costs. The TRC was fully unwound on July 18, 2014 upon the sale of the remaining underlying ICBC shares. Derivatives may giv e rise to counterparty credit risk , which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to, an uncollateralized derivative exposure . The Company manages this risk by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential value of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate de rivative credit risk, counterparties are required to be pre-approved by the Company and rated as investment grade, and c ounterparty risk exposures are centrally monitored . Additionally, in order to mitigate the bilateral counterparty credit risk associate d with derivatives, the Company has in certain instances entered into master netting agreements with its derivative counterparties, which provide a right of offset for certain exposures between the parties. A majority of the Company’s derivative assets and liabilities as of December 31, 2015 and 2014 are subject to such master netting agreements wit h its derivative counterparties, and t here are no instances in which management makes an accounting policy election to not net assets and liabilities subje ct to an enforceable master netting agreement on the Company ’s Consolidated Balance Sheets. To further mitigate bilateral counterparty credit risk, the Company exercises its rights under executed credit support agreements with certain of its derivative cou nterparties. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All deri vative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts. In relation to the Company’s credit risk, under the terms of the derivative agreements it has with its various counterparties , the Company is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Based on the assessment of credit risk of the Company’s derivative counterparties as of December 31, 2015 and 2014 , the Company does not have derivative positions that warrant credit valuation adjustments. The Company’s derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below. Refer to Note 15 for a description of the Company’s methodology for determining the fair value of derivatives. The following t able summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: Other Assets Other Liabilities Fair Value Fair Value (Millions) 2015 2014 2015 2014 Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges $ 236 $ 314 $ 9 $ 4 Foreign exchange contracts Net investment hedges 191 492 57 46 Total derivatives designated as hedging instruments 427 806 66 50 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (a) 117 185 135 114 Total derivatives, gross 544 991 201 164 Less: Cash collateral netting (b) (155) (158) ― (4) Derivative asset and derivative liability netting (c) (107) (122) (107) (122) Total derivatives, net (d) $ 282 $ 711 $ 94 $ 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 , with a fair value of $ 91 million as of December 31, 2014 , none of whi ch was sold or repledged . The Company did not have any such non-cash collateral as of December 31, 2015 . Additionally, the Company posted $ 149 million and $ 114 million as of December 31, 2015 and 2014 , respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Company’s Consolidated Balance Sheets and are not netted against the derivative balances. Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivativ e counterparty. The total net derivative assets and derivative li abilities 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 December 31, 2015 and 2014 , are subject to master netting agreements with its derivative counterparties. As noted previously , the Company has no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets. Derivative Financial Instruments That Qualify For Hedge Accounting Derivatives executed for hedge accountin g purposes are documented and designated as such when the Comp any enters into the contracts. In accordance with its risk management policies, the Company structures its hedges with terms similar to those of the item being hedged. The Company formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or c ash flows of the hedged items. These assessments usually are made through t he application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, the Company will discontinue the application of hedge accounting. Fair Value Hedges A fair value hedge involves a derivative designat ed to hedge the Company’s exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof , that is attributable to a particular risk. Interest Rate Contracts The Com pany 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 December 31, 2015 and 2014 , the Company hedged $ 18.8 billion and $ 17.6 billion, respectively, of its fixed-rate debt to floating-rate debt using interest rate swaps. To the extent the fair value hedge is effective, the gain or loss on the hedging i nstrument offsets the loss or gain on the hedged item attributable to the hedged risk. Any difference between the changes in the fair value of the derivative and the hedged item is referred to as hedge ineffectiveness and is reflected in earnings as a comp onent of O ther expenses. Hedge ineffectiveness may be caused by differences between a debt instrument’s interest coupon and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the valuation of the interest rate swap. Furthermore, hedge ineffectiveness may be caused by changes in the relationship between 3-month LIBOR and 1-month LIBOR, as well as between the overnight indexed swap rate (OIS) and 1-month LIBOR, as spreads between these rates may impact the valuation of the interest rate swap without causing an offsetting impact in the value of the hedged debt. If a fair value hedge is de-designated or no longer considered to be effective, changes in fair value of the derivative continue to be recorded through earnings but the hedged asset or liability is no longer adjusted for changes in fair value resulting from changes in interest rates . The existing basis adjustment of the hedged asset or liability is amortized or accreted as an adjustment to yield over the remaining life of that asset or liability. Total Return Contract The Company hedged its exposure to changes in the fair value of its equity investment in ICBC in local currency . The Company used a 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 of its fixed-rate long-term debt and its investment in ICBC for the years ended December 31 : Gains (losses) recognized in income (Millions) Derivative contract Hedged item Net hedge Income Statement Amount Income Statement Amount ineffectiveness Derivative relationship Line Item 2015 2014 2013 Line Item 2015 2014 2013 2015 2014 2013 Interest rate contracts Other expenses $ (83) $ (143) $ (370) Other expenses $ 93 $ 148 $ 351 $ 10 $ 5 $ (19) Total return contract Other non-interest Other non-interest revenues $ ― $ 11 $ 15 revenues $ ― $ (11) $ (15) $ ― $ ― $ ― The Company also recognized a net reduction in interest expense on long-term debt of $ 284 million, $ 283 million and $ 346 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, primarily related to the net settlements (interest accruals) on the Company’s interest rate derivatives designated as fair value hedges. Net Investment Hedges A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. The Company primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to changes in currency exchange rates on the Company’s investments in non-U.S. subsidiaries. The effective portion of the gain on net investment hedges , net of taxes, recorded in Accumulated Other Comprehensive Income ( Loss ) as part of the cumulative translation adjustment , was $ 577 million, $ 455 million and $ 253 million for the years ended 2015 , 2014 and 2013 , respectively, with any ineffective portion recognized in Other expenses during the period of change. Gains (losses) recognized in income Amount reclassified from AOCI into income Net hedge ineffectiveness Description (Millions) Income Statement Line Item 2015 2014 2013 Income Statement Line Item 2015 2014 2013 Net investment hedges: Foreign exchange contracts Other expenses $ ― $ 10 $ ― Other expenses $ 1 $ ― $ ― Derivatives Not Designated As Hedges The Company has derivatives that act as economic hedges , but are not designated as such for hedge accounting purposes. Foreign currency transactions and non-U.S. dollar cash flow exposures from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards, options and cross-currency swaps. These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of des ignated currencies at an agreed upon rate for settlement on a specified date. The changes in the fair value of the derivatives effectively offset the related foreign exchange gains or losses on the underlying balance sheet exposures . F rom time to time, the Company also may enter into interest rate swaps to specifically manage funding costs related to its proprietary card business. The Company also has certain operating agreements containing payments that may be linked to a market rate or price, pr imaril y foreign currency rates. The payment components of these agreements may meet the definition of an embedded derivative, in which case the embedded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. For derivatives that are not designated as hedges, changes in fair value are reported in current period earnings. The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s derivatives not designated as hedges for the years ended December 31 : Pretax gains (losses) Amount Description (Millions) Income Statement Line Item 2015 2014 2013 Interest rate contracts Other expenses $ ― $ ― $ 1 Foreign exchange contracts (a) Other expenses (39) 194 72 Cost of Card Member services 5 4 ― Total $ (34) $ 198 $ 73 F oreign exchange contracts include forwards and embedded foreign currency derivatives. |
Fair Values
Fair Values | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Fair Values | NOTE 15 Fair Values Fair value is defined as the price that would be re quired to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or , in the absence of a principal, most advantageous market for t he specific asset or liability. GAAP provide s for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 ― Inputs that are quoted prices ( unadjusted) for identical assets or liabilities in active markets that the entity can access . Level 2 ― Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantiall y the full term of the asset or liability, including: - Quoted prices for similar assets or liabilities in active markets ; - Quoted prices for identical or similar assets or liabilities in markets that are not active ; - Inputs other than quoted prices that are observable for the asset or liability ; and - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 ― Inputs that are unobservable and reflect the Company’s own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company d id not measure any financial instruments presented on the Consolidated Balance Sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31 , 2015 and 2014 , although the disclosed fair va lue of certain assets that are not carried at fair value, as presented later in this Note, are classified within Level 3. The Company monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, the Company disclose s the fair value measurement at the beginning of the reporting period during which the transfer occurred. For the years ended December 31, 2015 and 2014, there were no significant transfers between levels. Financial Assets and Financial Liabilities Carried at Fair V alue 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 described in the preceding paragraphs), as of December 31: 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 3,758 409 3,349 ― 4,430 350 4,080 ― Derivatives (a) 544 ― 545 ― 991 ― 991 ― Total assets 4,303 410 3,894 ― 5,422 351 5,071 ― Liabilities: Derivatives (a) 201 ― 201 ― 164 ― 164 ― Total liabilities $ 201 $ ― $ 201 $ ― $ 164 $ ― $ 164 $ ― Refer to Note 5 for the fair values of investment securities and to Note 14 for the fair values of derivative assets and liabilities, on a further disaggregated basis . Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Fair Value For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table above ) the Company applies the following valuation techniques : Investment Securities When available, quoted prices of identical investment securities in active markets are used to estimate fair value. Such investment securities are classified within Level 1 of the fair value hierarchy. When quoted prices of identical investment securities in active market s are not available, the fair values for the Company’s investment securities are obtained primarily from pricing services engaged by the Company, and the Company receives one price for each security. The fair values provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. Such investmen t securities are classified within Level 2 of the fair value hierarchy. The inputs to the valuation techniques applied by the pricing services vary depending on the type of security being priced but are typically benchmark yields, benchmark security prices , credit spreads, prepayment speeds, reported trades and broker-dealer quotes, all with reasonable levels of transparency. The pricing services did not apply any adjustments to the pricing models used. In addition, the Company did not apply any adjustments to prices received from the pricing services. The Company reaffirms its understanding of the valuation techniques used by its pricing services at least annually. In addition, the Company corroborates the prices provided by its pricing services for reason ableness by comparing the prices from the respective pricing services to valuations obtained from different pricing sources . In instances where price discrepancies are identified between different pricing sources, the Company evaluates such discrepancies t o ensure that the prices used for its valuation represent the fair value of the underlying investment securities. Refer to Note 5 for additional fair value information. Derivative Financial Instruments The fair value of the Company’s derivative financ ial instruments is estimated by third-party valuation service s that use proprietary pricing models or by internal pricing models, where the inputs to those models are readily observable from actively quoted markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. The Company reaffirms its understanding of the valuation techniques used by the third-party valuation services at least annually. The Company’s derivative instruments are cla ssified within Level 2 of the fair value hierarchy. The fair value of the Company’s interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amou nt, fixed coupon rate, floating coupon rate (based on interbank rates consistent with the frequency and currency of the interest cash flows) and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the c ash flows are denominated. The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturi ty dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve, used to value derivatives are not indicative of the credit quality of the Company or its counterparties. The Company considers the counterparty credit risk by applying an observable forecasted default rate to the c urrent exposure. Refer to Note 14 for additional fair value information. Financial Assets and Financial Liabilities Carried at Other Than Fair Value The following table summarizes the estimated fair values of the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of December 31, 2015 and 2014 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2015 and 2014 , and require management judgment. These figure s may not be indicative of future fair values, nor can the fair value of the Company be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2015 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents $ 23 $ 23 $ 22 $ 1 (a) $ ― Other financial assets (b) 47 47 ― 47 ― Financial assets carried at other than fair value Card Member loans and receivables HFS (d) 15 15 ― ― 15 Loans, net 59 60 (c) ― ― 60 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 67 67 ― 67 ― Financial liabilities carried at other than fair value Certificates of deposit (e) 14 14 ― 14 ― Long-term debt $ 48 $ 49 (c) $ ― $ 49 $ ― 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 (e) 8 8 ― 8 ― Long-term debt $ 58 $ 60 (c) $ ― $ 60 $ ― Reflects time deposits. Includes accounts receivable (including fair valu es of Card Member receivables of $ 6.7 billion and $ 7.0 billion held by a consolidated VIE as of December 31, 2015 and 2014 , respectively), restricted cash and other miscellaneous assets . Includes f air valu es of Card Member loans of $ 23.5 billion and $ 29.9 billion, and long-term debt of $ 13.6 billion and $ 19.5 billion held by consolidated VIEs as of December 31, 2015 and 2014 , respectively. Does not include any fair value associated with the Card Member account relationships. Refer to Note 2 for additional information . Presented as a component of customer deposits on the Consolidated Balance Sheets. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2015 , and require management judgment. These figures may not be indicative of future fair values. The fair value of the Company cannot be reliably estimated by aggregating the amounts presented. Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Other Than Fair Value For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table ) the Company applies the follow ing valuation techniques to measure fair value: Financial Assets For Which Carrying Values Equal O r Approximate Fair Value Financial assets for which carrying values equal or approximate fair value include cash and cash equivalents, Card Member receivabl es, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration , have no defined maturity or have a market-based interest rate. Financial Assets Carried At Other Than Fair Value Card Member loans and receivables HFS As described in Note 2, Card Member loans and receivables HFS are recorded at the lower of cost or fair value on the Consolidated Balance Sheets. As a result, the estimation of fair value included in the pre vious table does not reflect any fair value associated with the Card Member account relationships and follows the technique described under Loans, net below. Loans , net Loans are recorded at historical cost, less reserves, on the Consolidated Balance Sh eets. In estimating the fair value for the Company’s loans the Company uses a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar credit card loan s and the lack of observable pricing inputs thereof, the Company u ses various inputs derived from an equivalent securitization market to estimate fair value. Such inputs include projected income (inclusive of future interest payments and late fee revenue), estimated pay-down rates, discount rates and relevant credit cost s. The valuation does not include economic value attributable to future receivables generated by the accounts associated with the loans. Financial Liabilities For Which Carrying Values Equal Or Approximate Fair Value Financial liabilities for which carrying values equal or approximate fair value include accrued interest, customer deposits (excluding certificates of deposit, which are described further below), Trave lers Cheques and other prepaid products outstanding, accounts payable, short- term borro wings and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Liabilities Carried At Other Than Fair Value Certi ficates of Deposit Certificates of deposit (CDs) are recorded at their historical issuance cost on th e Consolidated Balance Sheets. Fair value is estimated using a discounted cash flow methodology based on the future cash flows and the discount rate that r eflects the Company’s current rates for similar types of CDs within similar markets . Long-term Debt Long-term debt is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for the impact of fair value hedge accounting on certai n fixed-rate notes and current translation rates for foreign-denominated debt . The fair value of the Company’s long-term debt is measured using quoted offer prices when quoted market prices are available. If quoted market prices are not available, the fair value is determined by discounting the future cash flows of each instrument at rates currently observed in publicly - traded debt markets for debt of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicl y traded debt markets of similar terms and comparable credit risk, the Company uses market interest rates and adjusts those rates for necessary risks, including its own credit risk. In determining an appropriate spread to reflect its credit standing, the C ompany considers credit default swap spreads, bond yields of other long-term debt offered by the Company, and interest rates currently offered to the Company for similar debt instruments of comparable maturities. 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 applicabl e if determined to be impaired. During the fourth q uarter of 2015 , the Company recorded a $384 million impairment charge, co nsisting of a $219 million write-down of the entire balance of goodwill in the Prepaid Services business and a $165 million write- d own of technology and other assets to fair value , which was insignificant for the year ended December 31, 2015. Refer to Note 2 for a description of the Company’s 2015 impairment charges. During the year ended December 31, 2014 , the Company did not have any material assets that were measured at fair value due to impairment . |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Guarantees | NOTE 16 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. For the Company, guarantees primarily consist of card and travel protection programs, including: Return Protection — refunds the price of qualifying purchases made with the eligible card s where the merchant will not accept the return for up to 90 days from the date of purchase; and Merchant Protection — protects Card Members primarily against non-delivery of goods and services, usually in the event of bankruptcy or liquidation of a merchant. When this occurs, the Card Member may dispute the transaction for which the Company will generally credit the Card Member ’s account. If the Company is unable to collect the amount from the merchant, it wi ll bear the loss for the amount credited to the Card Member. The largest component of the maximum potential future payments relates to Card Member transactions associated with travel-related merchants, primarily through business arrangements where the Company has remitted payment to such merchants for a Card Member travel purchase that has not yet been used or “flown. ” 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 indemnifi cations . 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 g uarantees and indemnifications as of December 31: 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 37 67 Total $ 48 $ 45 $ 86 $ 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 eligible claims in relation to annual billed business volumes. Included in O ther liabilities on the Company’s Consolidated Balance Sheets. P rimarily includes guarantees related to the Com pany’s purchase protection, real estate and business dispositions . |
Common and Preferred Shares and
Common and Preferred Shares and Warrants | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Common And Preferred Shares And Warrants [Text Block] | NOTE 17 C ommon and P referred S hares The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31 : (Millions, except where indicated) 2015 2014 2013 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 1,023 1,064 1,105 Repurchases of common shares (59) (49) (55) Other, primarily stock option exercises and restricted stock awards granted 5 8 14 Shares issued and outstanding as of December 31 969 1,023 1,064 Of the common shares authorized but unissued as of December 31, 2015 , approximately 51 million shares a re reserved for issuance under employee stock and employee benefit plans . On May 12, 2015, the Board of Directors authorized the repurchase of 150 million of common shares over time in accordance with the Company’s capital distribution plans submitted to the Federal Reserve and subject to market conditions. This authorization replaces all prior repurchase authorizations. During 2015 a nd 2014 , the Company repurchased 59 million common shares with a cost basis of $ 4.5 billion and 49 million common shares with a co st basis of $ 4.4 billion, respe ctively. The cost basis includes commissio ns paid of $ 1.1 million and $ 1.0 million in 2015 and 2014 , respectively. As of December 31, 2015 , the Company has 106 million common shares remaining under the Board share repurchase authorization. Such authorization does not have an expiratio n date. Common shares are generally retired by the Company upon repurchase (except for 3.0 million, 3.2 million and 3.5 million shares held as treasury shares as of December 31, 2015 , 2014 and 2013 , respectively); retired common shares and treasury shares are excluded from the shares outstanding in the table above. The treasury shares, with a cost basis of $ 242 million, $ 280 million and $ 260 million as of December 31, 2015 , 2014 and 2013 , respectively, are included as a reduction to additional paid-in capital in shareholders’ equity on the Consolidated Balance Sheets. PREFERRED SHARES The Board of Directors is authorized to permit 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 outstanding as of December 31 , 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. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the Company, the preferred stock then outstanding takes precedence over the Company’s common stock for the payment of dividends and the distribution of assets out of funds legally available for distribution to shareholders. Each outstanding series of Preferred Shares has a liquidation price of $1 million per Preferred Share, plus any accrued but unpaid dividends. 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. There were no preferred shares issued and outstanding as of December 31, 2013. There were no warrants issued and outstanding as of December 31, 2015, 2014 and 2013. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Changes in Accumulated Other Comprehensive (Loss) Income | NOTE 18 Changes in Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive ( Loss ) Income is a balance sheet item in the Shareholders’ Equity section of the Company’s Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three years ended December 31 were as follows: (Millions) , net of tax (a) Net Unrealized Gains (Losses) on Investment Securities Net Unrealized Gains (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Losses (Gains) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2012 $ 315 $ ― $ (754) $ (488) $ (927) Net unrealized losses (159) ― ― ― (159) Decrease due to amounts reclassified into earnings (93) ― ― ― (93) Net translation loss of investments in foreign operations ― ― (589) ― (589) Net gains related to hedges of investments in foreign operations ― ― 253 ― 253 Pension and other postretirement benefit gains ― ― ― 89 89 Net change in accumulated other comprehensive (loss) income (252) ― (336) 89 (499) Balances as of December 31, 2013 63 ― (1,090) (399) (1,426) Net unrealized gains 104 ― ― ― 104 Decrease due to amounts reclassified into earnings (71) ― 5 ― (66) Net translation loss of investments in foreign operations ― ― (869) ― (869) Net gains related to hedges of investments in foreign operations ― ― 455 ― 455 Pension and other postretirement benefit losses ― ― ― (117) (117) Net change in accumulated other comprehensive income (loss) 33 ― (409) (117) (493) Balances as of December 31, 2014 96 ― (1,499) (516) (1,919) Net unrealized losses (37) ― ― ― (37) Decrease due to amounts reclassified into earnings (1) ― (1) ― (2) Net translation loss of investments in foreign operations ― ― (1,122) ― (1,122) Net gains related to hedges of investment in foreign operations ― ― 578 ― 578 Pension and other postretirement benefit losses ― ― ― (32) (32) Net change in accumulated other comprehensive loss (38) ― (545) (32) (615) Balances as of December 31, 2015 $ 58 $ ― $ (2,044) $ (548) $ (2,534) The following table shows the tax impact for the three years ended December 31 for the changes in each component of Accumulated Other Comprehensive Income: Tax expense (benefit) (Millions) 2015 2014 2013 Investment securities $ (20) $ 19 $ (142) Foreign currency translation adjustments (124) (64) (49) Net investment hedges 340 273 135 Pension and other postretirement benefit losses ― (46) 56 Total tax impact $ 196 $ 182 $ ― The following table presents the effects of reclassifications out of Accumulated Other Comprehensive ( Loss ) Income and into the Consolidated Statement s of Income for the year s ended December 31 Gains (losses) recognized in earnings Description (Millions) Income Statement Line Item 2015 2014 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ 1 $ 111 Related income tax expense Income tax provision ― (40) Reclassification to net income related to available-for-sale securities 1 71 Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related hedges Other expenses 1 (9) Related income tax expense Income tax provision ― 4 Reclassification of foreign currency translation adjustments 1 (5) Total $ 2 $ 66 |
Non-Interest Revenue and Expens
Non-Interest Revenue and Expense Detail | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Non-Interest Revenue and Expense Detail | NOTE 19 Non-interest revenue and expense detail The following is a detail of O ther commissions and fees for the years ended December 31: (Millions) 2015 2014 2013 Foreign currency conversion fee revenue $ 852 $ 877 $ 877 Delinquency fees 788 722 667 Loyalty coalition-related fees 379 383 310 Service fees 361 366 375 Other (a) 137 160 185 Total Other commissions and fees $ 2,517 $ 2,508 $ 2,414 Other primarily include s revenu es from fees related to M embership R ewards programs. The following is a detail of Other revenues for the years ended December 31: (Millions) 2015 2014 2013 Gain on sale of investment in Concur Technologies $ ― $ 744 $ ― Global Network Services partner revenues 640 694 650 Gross realized gains on sale of investment securities 1 100 136 Other (a) 1,392 1,451 1,488 Total Other revenues $ 2,033 $ 2,989 $ 2,274 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 insura nce 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 for the years ended December 31: (Millions) 2015 2014 2013 Professional services $ 2,750 $ 3,008 $ 3,102 Occupancy and equipment 1,854 1,807 1,904 Goodwill and long-lived asset impairment (a) 384 ― ― Card and merchant-related fraud losses (b) 308 369 278 Communications 345 383 379 Gain on business travel joint venture transaction ― (630) ― Other (c) 1,152 1,152 1,133 Total Other expenses $ 6,793 $ 6,089 $ 6,796 Refer to Note 2 for additional information . Beginning January 1, 2015, merchant-related fraud losses 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 settlements, certain loyalty coalition-related expenses and foreign currency-related gains and losses (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in the year ended December 31 , 2015). Effective December 1, 2015, Other expenses includes the valuation allowance adjustment associated with the HFS portfolios. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Restructuring Charges | NOTE 20 Restructuring From time to time, the Company initiates restructuring programs to become more efficient and effective, and to support new business strategies. In connection with these programs, the Company typically will incur severance and other exit costs. During 2015 , the Company recorded a net reduction of $ 26 million in restructuring charges, consisting of a reduction of $61 million in revisions to prior estimates , partially offset by $35 million in net restructuri ng charge s for EG recorded in the fourth quarter. During 2014 , the Company recorded $ 411 million of restructuring charges, net of revisions to prior estimates. The 2014 activity primarily relates to $ 313 million and $ 133 million of restructuring charges recorded in the fourth quarter and second quarter, respectively. Restructuring charges related to severance obligations are included in sal aries and employee benefits in the Company’s Consolidated State ments of Income, while charges pertaining to other exit costs are included in occupancy and eq uipment and other expens es. The following table summarizes the Company’s restructuring reserves activity for the years ended December 31, 2015 , 2014 and 2013 : (Millions) Severance Other (a) Total Liability balance as of December 31, 2012 $ 412 $ 58 $ 470 Restructuring charges, net of $4 in revisions (b) (7) 3 (4) Payments (206) (23) (229) Other non-cash (c) (3) (1) (4) Liability balance as of December 31, 2013 196 37 233 Restructuring charges, net of $35 in revisions (b) 383 28 411 Payments (93) (22) (115) Other non-cash (d) (51) (8) (59) Liability balance at December 31, 2014 435 35 470 Restructuring charges, net of $61 in revisions (b) (33) 7 (26) Payments (141) (14) (155) Other non-cash (c) (23) (5) (28) Liability balance as of December 31, 2015 (e) $ 238 $ 23 $ 261 Other pr imarily includes facility exit and contract termination costs. Revisions primarily relate to higher than anticipated redeployments of displaced employees to other positions within the Company , business changes and modifications to existing initiatives . Consists primarily of foreign exchange impacts . Consists of $ 42 million reserve transferred to the GBT JV in the second quarter of 2014 as part of the GBT sale and $ 17 million of foreign ex change and other non-cash charges. The majority of cash payments related to the remaining restructuring liabilities are expected to be completed in 2016 , and to a lesser extent certain contractual long-term severance arrangements and lease obligations are expected to be completed in 2017 and 20 20 , respectively. The following table summarizes the Company’s restructu ring charges, net of revisions , by reportable operating segment and Corporate & Other for the year ended December 31, 2015 , and the cumulativ e amounts relating to the restructuring programs that were in progress during 2015 and initiated at various dates between 2009 and 2015 . Cumulative Restructuring Expense Incurred To Date On 2015 In-Progress Restructuring Programs Total Restructuring Charges, net (Millions) revisions Severance Other Total USCS $ (7) $ 35 $ ― $ 35 ICS (17) 198 ― 198 GCS (16) 113 ― 113 GNMS (1) 57 ― 57 Corporate & Other 15 154 73 227 (a) Total $ (26) $ 557 $ 73 $ 630 (b) Corporate & Other includes certain severance and other charges of $151 million related to Company wide support functions which were not allocated to the Company’s reportable operating segments, as these were corporate initiatives, which is consistent with how such charges were reported internally. As of December 31, 2015 , the total expenses to be incurred for previously approved restructuring activities that were in progress are not expected to be materially different than the cumulative expenses inc urred to date for these programs. The following table summarizes the Company’s restructuring reserves activity for the years ended De cember 31, 2014 , 2013 and 2012 : |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Income Taxes | N OTE 21 I ncome T axes The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2015 2014 2013 Current income tax expense: U.S. federal $ 2,107 $ 2,136 $ 1,730 U.S. state and local 335 264 288 Non-U.S. 416 412 514 Total current income tax expense 2,858 2,812 2,532 Deferred income tax expense (benefit): U.S. federal (23) 352 113 U.S. state and local (5) 39 4 Non-U.S. (55) (97) (120) Total deferred income tax expense (83) 294 (3) Total income tax expense $ 2,775 $ 3,106 $ 2,529 A reconciliation of the U.S. federal statutory rate of 35 percent to the Company’s actual income tax rate for the years ended December 31 on continuing operations was as follows: 2015 2014 2013 U.S. statutory federal income tax rate 35.0 % 35.0 % 35.0 % (Decrease) increase in taxes resulting from: Tax-exempt income (1.7) (1.5) (1.6) State and local income taxes, net of federal benefit 2.8 2.7 3.1 Non-U.S. subsidiaries earnings (a) (1.8) (2.2) (2.8) Tax settlements (b) (0.2) (0.5) (1.9) Non deductible expenses (c) 0.9 ― ― All other ― 1.0 0.3 Actual tax rates (a) 35.0 % 34.5 % 32.1 % Results for all years primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely. Relate s to the resolution of tax matters in various jurisdictions. Relates to the nondeductible portion of the EG goodwill impairment . The Company records a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. The significant components of deferred tax assets and liabili ties as of December 31 are reflected in the following table: (Millions) 2015 2014 Deferred tax assets: Reserves not yet deducted for tax purposes $ 3,771 $ 3,926 Employee compensation and benefits 648 789 Other 520 266 Gross deferred tax assets 4,939 4,981 Valuation allowance (58) (75) Deferred tax assets after valuation allowance 4,881 4,906 Deferred tax liabilities: Intangibles and fixed assets 1,547 1,597 Deferred revenue 509 498 Deferred interest 323 350 Asset securitization ― 162 Investment in joint ventures 231 223 Other 120 62 Gross deferred tax liabilities 2,730 2,892 Net deferred tax assets $ 2,151 $ 2,014 A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances as of December 31, 2015 and 2014 are associated with net operating losses and other deferred tax assets in certain non-U.S. operations of the Company. Accumulated earnings of certain non-U.S. subsidiaries, which totaled approximately $ 9.9 billion as of December 31, 2015 , are inten ded to be permanently reinvested outside the United States . The Company does not provide for federal income taxes on foreign earnings intended to be permanently reinvested outside the United States . Accordingly, federal taxes, which would have aggregated approximately $ 3.0 billion as of December 31, 2015 , have not been provided on those earnings. Net income taxes paid by the Company during 2015 , 2014 and 2013 , were approximately $ 3.4 billion, $ 2.5 billion and $ 2.0 billion, respectiv ely. These amounts include estimated tax payments and cash settlements relating to prior tax years. The Company is subject to the income tax laws of the United States , its states and municipalities and those of the foreign jurisdictions in which the Company operat es. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, the Company must make judgments in assessing the likelihood that a tax position will be susta ined upon examination by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with t he taxing authority given the facts, circumstances and information available at the reporting date. The Company adjusts the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. The Company is u nder continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which the Company has significant business operations. The tax years under examination and open for examination vary by jurisdiction. The IRS has completed its field examination of the Company’s federal tax returns for years through 2007; however, refund claims for certain years continue to be reviewed by the IRS . In addition, the Company is currently under examination by the IRS for the ye ars 2008 through 2011 . The following table presents changes in unrecognized tax benefits: (Millions) 2015 2014 2013 Balance, January 1 $ 909 $ 1,044 $ 1,230 Increases: Current year tax positions 81 4 124 Tax positions related to prior years 177 111 176 Decreases: Tax positions related to prior years (256) (181) (371) Settlements with tax authorities (15) (67) (94) Lapse of statute of limitations (26) (1) (21) Effects of foreign currency translations ― (1) ― Balance, December 31 $ 870 $ 909 $ 1,044 Included in the unrecognized tax benefits of $ 0.9 billion, $ 0.9 billion and $ 1.0 billion for December 31, 2015 , 2014 and 2013 are approximately $ 502 million, $ 412 million and $ 427 million, respectively that, if recognized, would favorably affect the effective tax rate in a future period. The Company believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $ 231 million principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unreco gnized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxa ble income to a particular jurisdiction or jurisdictions. Of the $ 231 million of unrecognized tax benefits, approximately $ 21 million relates to amounts that, if recognized, would be recorded in shareholders’ equity and would not impact the C ompany’s results of operations or its effective tax rate. Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. For the year ended December 31, 2015, the Company recognized approximately $38 million in expen ses for interest and penalties. For the years ended December 31, 2014 and 2013, the Company recognized benefits of approximately, $19 million and $31 million, respectively, of interest and penalties. The Company has approximately $164 million and $126 mill ion accrued for the payment of interest and penalties as of December 31, 2015 and 2014, respectively. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Earnings Per Common Share (EPS) | NOTE 22 Earnings Per Common Share (EPS) The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2015 2014 2013 Numerator: Basic and diluted: Net income $ 5,163 $ 5,885 $ 5,359 Preferred dividends (62) ― ― Net income available to common shareholders 5,101 5,885 5,359 Earnings allocated to participating share awards (a) (38) (46) (47) Net income attributable to common shareholders $ 5,063 $ 5,839 $ 5,312 Denominator: (a) Basic: Weighted-average common stock 999 1,045 1,082 Add: Weighted-average stock options (b) 4 6 7 Diluted 1,003 1,051 1,089 Basic EPS $ 5.07 $ 5.58 $ 4.91 Diluted EPS $ 5.05 $ 5.56 $ 4.88 The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. T he dilutive effect of unexercise d stock options excludes from the computation of EPS 0.5 million, 0.2 million and 0.1 million of options f or the years ended December 31, 2015 , 2014 and 2013 , respectively, because inclusion of the options would have been anti-dilutive. For the years ended December 31, 2015 , 2014 and 2013 , the Company met specified performance measures related to the $ 750 million of Subordinated Debentures issued in 2006 , and maturing in 2036. If the performance measur es were not achieved in any given quarter, the Company would be required to issue common shares and apply the proceeds to make interest payments. |
Regulatory Matters and Capital
Regulatory Matters and Capital Adequacy | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Regulatory Matters and Capital Adequacy | NOTE 23 Regulatory Matters and Capital Adequacy The Company is supervised and regulated by the Federal Reserve and is subject to the Federal Reserve’s requirements for risk-based capital and leverage ratios. The Company’s two U.S. bank operating subsidiaries, American Express Centurion Bank (Centurion Bank) and American Express Bank, FSB (FSB) (together, the Banks), are subject to supervision and regulation, including similar regulatory capital requirements by the Federal Deposit Insurance Corpora tion (FDIC) and the Office of the Comptroller of the Currency (OCC) , respectively . Under the risk-based capital guidelines of the Federal Reserve, the Company is required to maintain minimum ratios of Common Equity Tier 1 (CET1), Tier 1 and Total (Tier 1 plus Tier 2) capital to risk- weighted assets, as well as a minimum leverage ratio (Tier 1 capital to average adjusted on-balance sheet assets). Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional, discretio nary actions by regulators, that, if undertaken, could have a direct material effect on the Company’s and the Banks’ operating activities . As of December 31, 2015 and 2014 , the Company and the Banks met all capital requirements to which each was subject and maintained regulatory capital ratios in excess of those required to qualify as well capitalized. The following table presents the regulatory capital ratios for the Company and the Banks : CET1 Tier 1 Total CET1 Tier 1 Total Tier 1 capital capital capital leverage (Millions, except percentages) capital capital capital ratio ratio ratio ratio December 31, 2015: (a) American Express Company $ 16,747 $ 18,265 $ 20,551 12.4 % 13.5 % 15.2 % 11.7 % American Express Centurion Bank 6,013 6,013 6,460 16.9 16.9 18.2 17.7 American Express Bank, FSB 6,927 6,927 7,601 13.7 13.7 15.1 13.2 December 31, 2014: (a) American Express Company $ 17,525 $ 18,176 $ 20,801 13.1 % 13.6 % 15.6 % 11.8 % American Express Centurion Bank 6,174 6,174 6,584 18.8 18.8 20.1 18.7 American Express Bank, FSB 6,722 6,722 7,604 14.2 14.2 16.0 15.1 Well-capitalized ratios (b) 6.5 % (c) 8.0 % 10.0 % 5.0 % (d) Minimum capital ratios (b) 4.5 % 6.0 % 8.0 % 4.0 % Beginning in 2015, as a Basel III Advanced Approaches institution, capital ratios are reported using Basel III capital definitions, inclusive of transition provisions, and risk-weighted assets using the Basel III Standardized Approaches. As of December 31, 2014, capital ratios were reported using Basel III capital definitions, inclusive of transition provisions and Basel I risk-weighted assets. As defined by the regulations issued by the Federal Reserve, OCC and FDIC for the year ended December 31, 2015 . Beginning January 1, 2015, Basel III C ET1 well-capitalized ratios beca me relevant capital measures under the prompt and corrective action requirements defined by the regulations for Advanced Approaches institutions. Represents requirements for banking subsidiaries to be considered “well-capitalized” pursuant to regulations i ssued under the Federal Deposit Insurance Corporation Improvement Act. There is no “well-capitalized” definition for the Tier 1 leverage ratio for a bank holding company. Restricted Net Assets of Subsidiaries Certain of the Company’s subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on the Company’s shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. As of December 31, 2015 , the aggregate amount of net assets of subsidiaries that are restricted to be transferred to the Company was approximately $ 11.3 billion. Bank Holding Company Dividend Restrictions The Company is limited in its ability to p ay dividends by the Federal Reserve , which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial cond ition. Moreover, bank holding companies are required by statu t e to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, the Company i s required to develop and maintain a capital plan, which includes planned dividends over a two-year horizon, and to submit the capital plan to the Federal Reserve. Banks’ Dividend Restrictions In the years ended December 31, 2015 and 2014 , Centurio n Bank paid dividends from retained earnings to its parent of $ 2.0 billion and $ 1.9 billion, respectively, and FSB paid dividends from retained earnings to its parent of $ 2.2 billion and $ 2.1 billion, respectively. The Banks are subject to statutory and regulatory limitations on their ability to pay dividends. The total amount of dividends that may be paid at any date, subject to supervisory considerations of the Banks’ regulators, is general ly limited to the retained earnings of the respective bank. As of December 31, 2015 and 2014 , the Banks’ retained earnings, in the aggregate, available for the payment of dividends were $ 3.2 billion and $ 3.6 billion, respectively. In de te rmining the dividends to pay their parent, the Banks must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, the Banks’ banking regulator s have authority to limit or prohibit the payment of a dividend by the Banks under a num ber of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the fin ancial condition of the banking organization. |
Significant Credit Concentratio
Significant Credit Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Concentration Risk Disclosure [Text Block] | NOTE 24 Significant Credit Concentrations Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to American Express’ total credit exposure. The Company’s customers operate in diverse industries, economic sectors and geographic regions. The following table details the Company’s maximum credit exposure by category, including the credit exposure associated with derivative financial instruments, as of December 31: (Billions) 2015 2014 On-balance sheet: Individuals (a) $ 104 $ 101 Financial institutions (b) 25 25 U.S. Government and agencies (c) 4 4 All other (d) 17 17 Total on-balance sheet (e) 150 147 Unused lines-of-credit ― individuals (f) $ 297 $ 278 Individuals primarily include Card Member receivables and loans, including the HFS portfolios. Financial institutions primarily include debt obligations of banks, broker-dealers, insurance companies and savings and loan associations. U.S. Government and agencies represent debt obligations of the U.S. Government and its agencies, states and municipalities and government - sponsored entities. All other primarily includes Card Member receivables from other corporate institutions. Certain distinctions betwee n categories require management judgment. Because charge card products generally have no preset spending limit, the associated credit limit on charge products is not quantifiable. Therefore, the quantified unused line-of-credit amounts only include the ap proximate credit line available on lending products . As of December 31, 2015 and 2014 , the Company’s most significant concentration of credit risk was with individuals, including Card Member receivables and loans. These amounts are generally advanc ed on an unsecured basis. However, the Company reviews each potential customer’s credit application and evaluates the applicant’s financial history and ability and willingness to repay. The Company also considers credit performance by customer tenure, indu stry and geographic location in managing credit exposure. The following table details the Company’s Card Member loans and receivables exposure (including unused lines-of-credit on Card Member loans) in the United States and outside the United States as of December 31: (Billions) 2015 2014 On-balance sheet: U.S. (a) $ 99 $ 94 Non-U.S. 19 21 On-balance sheet (b)(c) 118 115 Unused lines-of-credit ― individuals: U.S. (a) 259 234 Non-U.S. 38 44 Total unused lines-of-credit ― individuals $ 297 $ 278 Includes on-balance sheet Card Member loans and receivables HFS and unused lines-of-credit for Card Member loans HFS, as of December 31, 2015. Represents Card Member loans to individuals as well as receivables from individuals and corporate institutions as discussed in footnotes (a) and (d) from the previous table. The remainder of the Company’s on-bala nce sheet exposure includes cash, investmen ts, other loans, oth er receivables and other assets including der ivative financial instruments. These balances are primarily within the U nited S tates . |
Reportable Operating Segment
Reportable Operating Segment | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Reportable Operating Segments | NOTE 25 Reportable Operating Segments and Geographic Operations 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 ) . The Company considers a combination of factors when evaluating the composition of its reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States) , and regulatory environment considerations. T he following is a brief description of t he primary business activities of the Company’s four reportable operating segments: USCS offers a wide range of card products and services to consumers and small businesses in the United States, provides travel services to Card Members and other consumers, and operates a coalition loyalty business . ICS offers a wide range of card products and services to consumer s and small business es out side the United States, provides travel services to Card Members and other consumers, and operates a coalition loyalty business in various countries . GCS offers global corporate payment services to l arge and mid-sized companies. The Company’s business travel operations, which had been included in GCS, were deconso lidated effective June 30, 2014 in connection with t he formation of the GBT JV, discussed previously. Therefore, there is a lack of comparability against periods p rior to the deconsolidation. The Company’s proportional share of the GBT JV net income or loss is reported within Other revenues. GNMS operates a global payments network that processes and settles proprietary and non-proprietary card transactions. GNMS acquires merchants ; leverages the Company’s global closed-loop network to offer multi-channel marketing programs and capabilities, services and repo rting and analytical data to the Company’s merchants around the world; and provides financing products for qualified merchants. It also enters into partnership agreements with third-party card issuers and acquirers to license the American Express brand and broaden the Card Member and merchant base for the Company’s network worldwide . Corporate functions and certain other businesses, including the Company’s EG 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 as of or for the years ended December 31, 2015 , 2014 and 2013 : Corporate & (Millions, except where indicated) USCS ICS GCS GNMS Other (a) Consolidated 2015 Non-interest revenues $ 13,180 $ 4,321 $ 3,513 $ 5,236 $ 646 $ 26,896 Interest income 6,267 939 14 98 227 7,545 Interest expense 654 242 185 (194) 736 1,623 Total revenues net of interest expense 18,793 5,018 3,342 5,528 137 32,818 Total provisions (b) 1,453 329 148 54 4 1,988 Pretax income (loss) from continuing operations 5,355 508 1,073 2,775 (1,773) 7,938 Income tax provision (benefit) 1,942 87 407 1,004 (665) 2,775 Net income (loss) 3,413 421 666 1,771 (1,108) 5,163 Total assets (billions) (c) 117 35 18 24 (33) 161 Total equity (billions) 10.3 2.9 3.7 2.4 1.4 20.7 2014 Non-interest revenues 12,628 4,737 5,173 5,426 752 28,716 Interest income 5,786 1,085 15 52 241 7,179 Interest expense 604 330 240 (269) 802 1,707 Total revenues net of interest expense 17,810 5,492 4,948 5,747 191 34,188 Total provisions 1,396 370 180 93 5 2,044 Pretax income (loss) from continuing operations 5,100 449 2,408 2,620 (1,586) 8,991 Income tax provision (benefit) 1,900 38 865 960 (657) 3,106 Net income (loss) 3,200 411 1,543 1,660 (929) 5,885 Total assets (billions) (c) 113 31 19 18 (22) 159 Total equity (billions) 10.4 3.0 3.8 2.0 1.5 20.7 2013 Non-interest revenues 12,019 4,644 5,085 5,229 846 27,823 Interest income 5,565 1,118 13 32 277 7,005 Interest expense 693 361 245 (252) 911 1,958 Total revenues net of interest expense 16,891 5,401 4,853 5,513 212 32,870 Total provisions 1,250 388 129 67 (2) 1,832 Pretax income (loss) from continuing operations 4,994 643 1,244 2,469 (1,462) 7,888 Income tax provision (benefit) 1,801 12 384 894 (562) 2,529 Net income (loss) 3,193 631 860 1,575 (900) 5,359 Total assets (billions) (c) $ 104 $ 31 $ 19 $ 17 $ (18) $ 153 Total equity (billions) $ 9.3 $ 3.1 $ 3.7 $ 2.0 $ 1.4 $ 19.5 Corporate & Other includes adjustments and eliminations for intersegment activity. Effective December 1, 2015, in the USCS segment, total provision s does not include credit costs related to Card Member loans and receivables HFS, which are now reported in O ther expenses through a valuation allowance adjustment. As of September 30, Total Revenues Net of Interest Expense The Company allocates discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the USCS, ICS and GCS segments, discount revenue reflects the issuer component of the overall discount revenue generated by each segment ’ s Card Members; within the GNMS segment, discount revenue reflects the network and acquirer component of the overall discount revenue. Net card fees and travel commissions and fees are directly attributabl e to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment f unding requirements and internal funding rates. Provisions for Losses The provisions for losses are directly attributable to the segment in which they are reported. Expenses Marketing and promotion expenses are included in each segment based on actual expenses incurred, with the exception of brand advertising, which is primarily reflected in the GNMS and USCS segment s . Rewards and Card Member services expenses are included in each segment based on actual expenses incurred within each segment. Salaries and employee benefits and other operating expenses includes expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, e xpenses related to support services, such as technology costs , are allocated to each segment primarily based on support service activities directly attributable to the segment. Other overhead expenses, such as staff group support functions, are allocated from Corporate & Other to the other segments based on a mix of each segment’s direct consumption of services and relative level of pretax income. Capital Each business segment is allocated capital based on established business model operating requirements, risk measures and regulatory capital requirements. The busi ness model operating requirements include capital needed to support operations and specific balance sheet items. The risk measures include considerations for credit, market and operational risk. Income Taxes An income tax provision (benefit) is allocated to each business segment based on the effective tax rates applicable to various businesses that comprise the segment. Geographic O perations The following table presents the Company’s total revenues net of interest expense and pretax income (loss) from continuing operations i n different geographic regions: (Millions) United States EMEA (a) JAPA (a) LACC (a) Other Unallocated (b) Consolidated 2015 (c) Total revenues net of interest expense $ 24,791 $ 3,161 $ 2,649 $ 2,384 $ (167) $ 32,818 Pretax income (loss) from continuing operations 8,010 534 456 658 (1,720) 7,938 2014 (c) Total revenues net of interest expense $ 24,751 $ 3,767 $ 2,934 $ 2,888 $ (152) $ 34,188 Pretax income (loss) from continuing operations 8,869 525 463 683 (1,549) 8,991 2013 (c) Total revenues net of interest expense $ 23,641 $ 3,700 $ 2,952 $ 2,900 $ (323) $ 32,870 Pretax income (loss) from continuing operations 7,679 524 488 701 (1,504) 7,888 EMEA represents Europe, the Middle East and Africa ; JAPA represents Japan, Asia/Pacific and Australia ; and LACC represents Latin America, Canada and the Caribbean. Other U nallocated includes net costs which are not directly allocable to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses . The data in the above table is, in part, based upon internal allocations, which necessarily involve management’s judgment . |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 26 Parent C ompany P ARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2015 2014 2013 Revenues Non-interest revenues Gain on sale of securities $ ― $ 99 $ 135 Other 400 270 5 Total non-interest revenues 400 369 140 Interest income 172 141 134 Interest expense (526) (543) (583) Total revenues net of interest expense 46 (33) (309) Expenses Salaries and employee benefits 341 275 206 Other 443 357 261 Total 784 632 467 Pretax loss (738) (665) (776) Income tax benefit (268) (249) (297) Net loss before equity in net income of subsidiaries and affiliates (470) (416) (479) Equity in net income of subsidiaries and affiliates 5,633 6,301 5,838 Net income $ 5,163 $ 5,885 $ 5,359 PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2015 2014 Assets Cash and cash equivalents $ 6,400 $ 8,824 Investment securities 1 1 Equity in net assets of subsidiaries and affiliates 19,856 20,123 Accounts receivable, less reserves 311 134 Premises and equipment, less accumulated depreciation: 2015, $140; 2014, $106 133 139 Loans to subsidiaries and affiliates 11,762 7,809 Due from subsidiaries and affiliates 896 1,477 Other assets 275 365 Total assets 39,634 38,872 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 1,603 1,590 Due to subsidiaries and affiliates 716 964 Short-term debt of subsidiaries and affiliates 6,923 5,937 Long-term debt 9,719 9,708 Total liabilities 18,961 18,199 Shareholders’ Equity Preferred Shares ― ― Common shares 194 205 Additional paid-in capital 13,348 12,874 Retained earnings 9,665 9,513 Accumulated other comprehensive loss (2,534) (1,919) Total shareholders’ equity 20,673 20,673 Total liabilities and shareholders’ equity $ 39,634 $ 38,872 PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2015 2014 2013 Cash Flows from Operating Activities Net income $ 5,163 $ 5,885 $ 5,359 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (5,633) (6,301) (5,838) Dividends received from subsidiaries and affiliates 5,331 5,455 4,768 Gain on sale of securities ― (99) (135) Other operating activities, primarily with subsidiaries and affiliates 332 173 324 Net cash provided by operating activities 5,193 5,113 4,478 Cash Flows from Investing Activities Sales of available-for-sale investment securities ― 111 157 Purchase of investments (3) ― ― Purchase of premises and equipment (29) (39) (39) Loans to subsidiaries and affiliates (3,952) (2,574) 1,498 Investments in subsidiaries and affiliates ― ― ― Net cash (used in) provided by investing activities (3,984) (2,502) 1,616 Cash Flows from Financing Activities (Principal payments on)/issuance of long-term debt ― (655) 843 Short-term debt of subsidiaries and affiliates 986 5,118 (1,497) Issuance of American Express preferred shares 841 742 ― Issuance of American Express common shares and other 192 362 721 Repurchase of American Express common shares (4,480) (4,389) (3,943) Dividends paid (1,172) (1,041) (939) Net cash provided by (used in) financing activities (3,633) 137 (4,815) Net increase (decrease) in cash and cash equivalents (2,424) 2,748 1,279 Cash and cash equivalents at beginning of year 8,824 6,076 4,797 Cash and cash equivalents at end of year $ 6,400 $ 8,824 $ 6,076 Supplemental cash flow information Non-cash financing activities Gain on business travel joint venture transaction $ ― $ 630 $ ― |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Abstract | |
Quarterly Financial Data | NOTE 27 QUARTERLY FINANCIAL DATA (UNAUDITED) (Millions, except per share amounts) 2015 2014 Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues net of interest expense $ 8,391 $ 8,193 $ 8,284 $ 7,950 $ 9,081 $ 8,303 $ 8,631 $ 8,173 Pretax income 1,454 1,938 2,230 2,316 2,225 2,246 2,312 2,208 Net income 899 1,266 1,473 1,525 1,447 1,477 1,529 1,432 Earnings Per Common Share — Basic: Net income attributable to common shareholders (a) $ 0.89 $ 1.24 $ 1.43 $ 1.49 $ 1.40 $ 1.41 $ 1.44 $ 1.34 Earnings Per Common Share — Diluted: Net income attributable to common shareholders (a) 0.89 1.24 1.42 1.48 1.39 1.40 1.43 1.33 Cash dividends declared per common share 0.29 0.29 0.29 0.26 0.26 0.26 0.26 0.23 Common share price: High 77.85 81.66 81.92 93.94 94.89 96.24 96.04 94.35 Low $ 67.57 $ 71.71 $ 76.53 $ 77.12 $ 78.41 $ 85.75 $ 83.99 $ 82.63 Represents net income, less ( i ) earnings allocated to participating share awards of $ 6 million , $ 10 million , $ 11 million and $ 11 million for the quarter s ended December 31, September 30, June 30 and March 31, 2015 , respectively, and $ 11 million, $ 11 million , $ 12 million and $ 12 million for the quarter s ended December 31, September 30, June 30 and March 31, 2014 , respectively, and (ii) dividend s on preferred shares of $ 20 million, $ 22 million and $ 20 million, for the quarter s ended December 31, September 30 and June 30, 2015 , respectively, and nil for all other comparative periods. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policy (Text Block) [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. The Company consolidates entities in which it holds a “ controlling financial interest .” For voting interest entities, the Company is considered to hold a controlling financial interest when it is abl e to exercise control over the investees ’ operating and f inancial decisions. For variable interest entities (VIEs), it is considered to hold a controlling financial interest when it is determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activiti es that most significantly impact that entity’s economic performance, and (2) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. The determination of whether an entity is a V IE is based on the amount and characteristics of the entity’s equity. Entities in which the Company’s voting interest in common equity does not provide it with control, but allows the Company to exert significant influence over the operating and financial decisions , are accounted for under the equity method. All other investments in equity securities, to the extent that they are not considered marketable securities, are accounted for under the cost method. |
Foreign Currency | Foreign Currency Assets and liabilities denomin ated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of each year. The resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comp rehensive income (loss) (AOCI) , a component of shareholders’ equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Revenues a nd expenses are tra nslated at the average month-end exchange rates during the year. Gains and losses related to transactions in a currency other than the functional currency, including operations outside the U.S. where the functional currency is the U.S. d ollar, are reported net in the Company’s Consolidated Statements of Income, in other non-interest revenue, interest inc ome, interest expense, or other expense s , depending on the nature of the activity. Net foreign currency transaction gains amounted to app roximately $ 44 million, $ 108 million and $ 120 million in 2014 , 2013 and 2012 , respectively. |
Amounts Based on Estimates and Assumptions | Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for C ard M ember losses on loans and receivables, the proprietary point liability for Membership Rewards cost s , fair value measurement, goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. |
Total Revenues Net of Interest Expense | Total Revenues Net of Interest Expense Discount Revenue Discount revenue represents the amount earned by the Company on transactions occurring at merchants with which the Company, or a Global Network Services (GNS) partner, has entered into card acceptance agreements for facilitating transactions between the merchants and the Company’s Card Member s. The discount fee generally is deducted from the payment to the merchant and recorded as discount revenue at the time t he charge is captured . Net Card Fees Card fees , net of direct card acquisition costs and a reserve for projected membership cancellations, are deferred and recognized on a straight-line basis over the 12-month card membership period as Net Card F ees in the Conso lidated Statements of Income. T he unamortized net card fee balance is reported net in Other L iabilities on the Consolidated Balance Sheets (refer to Note 10 ). Travel Commissions and Fees The Company earns travel commissions and fees by charging clients transaction or management fees for selling and arranging travel and for travel management services. Client transaction fee revenue is recognized at the time the client books the travel arrangements. Travel management services revenue is recognized over the contractual term of the agreement. The Comp any’s travel suppliers (e.g., airlines, hotels and car rental companies) pay commissions and fees on tickets issued, sales and other services based on contractual agreements. Commissions and fees from tra vel suppliers are generally recognized at the time a ticket is purchased or over the term of the contract. Commissions and fees that are based on services rendered (e.g. , hotel stays and car rentals) are recognized based on usage . Other Commissions and F ees Other commissions and fees include foreign currency conversion fees, Card Member delinquency fe es, service fees and other card- related assessments, which are recognized primarily in the period in which they are charged to the Card Member (refer to Not e 19) . In addition, service fees are also earned from other customers (e.g., merchants) for a variety of services and are recognized when the service is performed, which is generally in the period the fee is charged. A lso included are fees related to the Company’s Membership Rewards program, which are deferred and recognized over the period covered by the fee. The unamortized Membership Rewards fee balance is included in Other L iabilities on the Consolidated Bal ance Sheets (refer to Note 10). Contra-reven ue The Company regularly makes payments through contractual arrangements with merchants, corporate payments c lients , Card Members and certain other customers . Payments to such customers , including cash rebates paid to Card Members, are generally classifie d as contra-revenue unless a specifically identifiable benefit (e.g. , goods or services) is received by the Company or its Card Members in consideration for that payment , and the fair value of such benefit is determinable and measurable. If no such benefit is identified, then the entire payment is classified as contra-revenue and included in the Consolidated Statements of Income in the revenue line item where the related transaction s are recorded (e.g. , discount revenue, travel commissions and fees and othe r commissions and fees). If such a benefit is identified, then the payment is classified as expense up to the estimated fair value of the benefit. Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless t he loan is classified as non-accrual, interest is recognized based upon the outstanding balance, in accordance with the terms of the applicable account agreement, until the outstanding balance is paid or written off. Interest and dividends on investment s ecurities primarily relates to the Company’s performing fixed-income securities. Interest income is accrued as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so that a const ant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until such time as a security is in default or when it is likely that future interest payments will not be received as scheduled. Interest on deposit s with banks and other is recognized as earned, and primarily relates to the placement of cash in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans, charge card product receivables, general corporate purposes, and liquidity needs, and is recognized as incurred. Interest expense is divided principally into two categories: ( i ) deposits, which primari ly relates to interest expense on deposits taken from customers and institutions, and (ii) long-term debt and other, which primarily relates to interest expense on the Company’s long-term financing and short-term borrowings, and the realized impact of deri vatives hedging interest rate risk. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements , and other highly liquid investments with original maturities of 90 days or less. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depr eciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of assets, which range from 3 to 10 years for equipment , furniture and building improvement s . Premises are depreciated based upon their estimated useful life at the acquisition date , which generally ranges from 30 to 50 years. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility or the economic life of the improvement, which ranges from 5 to 10 years. The Company maintains operatin g leases worldwide for facilities and equipment. Rent expense for facility leases is recognized ratably over the lease term, and include s adjustments for rent concessions, rent escalations and leasehold improvement allowances. The Company recognizes lease restoration obligations at the fair value of the restoration liabilities when incurred, and amortiz es the restor ation assets over the lease term. |
Software Development Costs | The Company capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s es timated useful life, generally 5 years. |
Card Member and Other Receivables and Loans | Card Member and Other Receivables Card Member receivables , represent ing amounts due on charge card products, are recorded at the time a Card Member enters into a point-of-sa le transaction with a merchant. Each cha rge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are establish ed to limit the maximum exposure for the Company. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for losse s (refer to Note 4), and include principal and any related accrued fees. Ca rd Member and Other Loans Card Member loans , represent ing revolving amounts due on lending card products, are recorded at the time a Card Member enters into a point-of-sale transaction w ith a merchant, as well as amounts due from charge Card Members who utilize the lending-on-charge feature on their account and elect to revolve a portion of the outstanding balance by enter ing into a revolving payment arrangement with the Company . These lo ans have a range of terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members and in accordance with applicable regulations and the respective product’s terms and co nditions. Card Members holding revolving loans are typically required to make monthly payments based on pre-established amounts. The amounts that Card Members choose to revolve are subject to finance charges. Card Member loans are presented on the Consolid ated Balance Sheets net of reserves for losses (refer to Note 4), and include principal, accrued interest and fees receivable. The Company’s policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and es tablish reserves for interest that the Company believes will not be collected. Impaired Card Member Loans and Receivables Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that the Company will be unable to collect all amounts due according to the original contractual term s of the Card Member agreement. The Company considers impaired loans and receivables to include: ( i ) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receivables modifi ed as troubled debt restructurings (TDRs). The Company may modify, through various programs, Card Member loans and receivables in instances where the Card Member is experiencing financial difficulty in order to minimize losses and improve collectability, while providing Card Members with temporary or permanent financial relief. The Company has classified Card Member loans and receivables in these modification programs as TDRs. Beginning January 1, 2015, on a prospective basis the Company continues to class ify Card Member accounts that have exited a modification program as a TDR, with such accounts iden tified as “Out of Program TDRs.” Such modifications to the loans and receivables primarily include ( i ) temporary interest rate reductions (possibly as low as zero percent, in which case t he loan is characterized as non- accrual in the Company’s TDR disclosures), (ii) placing the Card Member on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the Card Member exits the modifi cation program. Upon entering the modification program, the Card Member’s ability to make future purchases is either cancelled, or in certain cases suspended until the Card Member successfully exits the modification program. In accordance with the modific ation agreement with the Card Member, loans may revert back to the original contractual terms (including the contractual interest rate) when the Card Member exits the modification program, which is ( i ) when all payments have been made in accordance with th e modification agreement or, (ii) when the Card Member defaults out of the modification program. The Company establishes a reserve for Card Member interest charges and fees considered to be uncollectible. Reserves for Card Member loans and receivables mod ified as TDRs are determined as the difference between the cash flows expected to be received from the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying val ue of the related Card Member loan or receivable balance. The Company determines the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest rate. All changes in the impairment measurement are include d in the P rovision s for losses in the Consolidated Statements of Income. |
Reserves for Losses | R eserves 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. Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantit ative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates , loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitative reserves for certain external and internal qualitative factors , which may increase or decrease the reserves for losses on Card Member receivables and loans. These external factors include employment, spend, sentiment, housing and c redit, and changes in the l egal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member receivables or loans , and net write-off coverage ratios . Card Member receivables and loans balances are written off when management considers amounts to be uncollectible , which is generally determined by the number of days past due and is typically no later than 180 days past due . Card Member r eceivables and loans in bankruptcy or owe d by deceased individuals are generally written off upon notification , and r ecoveries are recognized as they are collected . |
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 . Refer to Note 15 for a description of the Company’s methodology for determining the fair value of investment securities. |
Asset Securitizations | NOTE 6 Asset Securitizations The Company periodically securitizes Card Member receivables and loans arising from its card business , including Card Member loans and receivables HFS, through the transfer of those assets to securitization trusts. The trusts then issue debt securities to third-party investors, collateralized by the transferred assets. Card Member receivables are transferred to the American Express Issuance Trust II ( the Charge Trust). Card Member loans are transferred to the American Express Credit Account Master Trust (the Lending Trust , collectively the Trusts ). The Trust s are consolidated by American Express Travel Related Services Company, Inc. (TRS), which is a c onsolidated subsidiary of the Company. The T rusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member receivables and loans. Det ails on the principl e s of consolidation can be found in the summary of significant accounting policies (refer to Note 1). TRS, in its role as servicer of the Trust s , has the power to direct the mo st significant activity of the T rusts, which is the collection of the underlying Card Member receivables and loans . In addition, TRS , excluding its consolidated subsidiaries, owned approximately $ 1.0 billion of subordinated securities issued by the Lending Trust as of December 31 , 2015 . These subordinated securities have the obligation to absorb losses of the Lending Trust and p rovide the right to receive benefits from the Lending Trust, both of which are significant to the VIE . TRS’ role as servicer for the Charge Trust does n ot provide it with a significant obligation to absorb losses or a significant right to receive benefits. However, TRS’ position as the parent company of the entities that transferred the receivables to the Charge Trust makes it the party most closely relat ed to the Charge Trust . Based on these considerations, TRS is the primary beneficiary of both Trusts. The debt securities issued by the Trust s are non-recourse to the Company. The s ecuritized Card Member receivables and loans held by the Charge Trust and t he Lending Trust , respectively, are available only for payment of the debt securities or other obligations issued or arising in th e securitization transactions (refer to Note 3). The long-term debt of each T rust is payable only out of collections on their respective underlying securitized assets (refer to Note 9). |
Goodwill and Intangible Assets | Goodwill Goodwill represents the excess of acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. The Company assigns goodwill to its re porting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment for which discrete financial information is regularly reviewed by the operating segment man ager. The Company evaluates goodwill for impairment annually as of June 30 and between annual tests if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. The goodwill i mpairment test utilizes a two-step approach. The first step in the impairment test identifies whether there is potential impairment by comparing the fair value of a reporting unit to the carrying amount, including goodwill. If the fair value of a reporting unit is less than its carrying amount, the second step of the impairment test is required to measure the amount of any impairment loss. As of December 31, 2014 and 2013 , goodwill was not impaired and there were no accumulated impairment losses. Goodwill impairment testing involves management judgment, requiring an assessment of whether the carrying value of the reporting unit can be supported by its fair value using widely accepted valuation techniques. The Company uses a combination of the incom e approach (discounted cash flows) and market approach (market multiples). When preparing discounted cash flow models under the income approach, the Company uses internal forecasts to estimate future cash flows expected to be generated by the reporting uni ts. Actual results may differ from forecasted results. The Company calculates discount rates based on the expected cost of equity financing, estimated using a capital asset pricing model, to discount future cash flows for each reporting unit. The Company b elieves the discount rates used appropriately reflect the risks and uncertainties in the financial markets generally and specifically in the Company’s internally developed forecasts. When using market multiples under the market approach, the Company applie s comparable publically traded companies’ multiples (e.g. earnings, revenues) to its reporting units’ actual results. Other Intangible Assets Intangible assets, primarily customer relationships, are amortized over their estimated useful lives of 3 to 22 years on a straight-line basis . The Company reviews intangible assets for impairment quarterly and whenever events and circumstances indicate their carrying amounts may not be recoverable. In addition, on an annual basis, the Company performs an impairment evaluation of all intangible assets by assessing the recoverability of the asset values based on the cash flows generated by the relevant assets or asset groups. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset’s fair value. Intangible assets acquired in 2015 and 2014 are being amortized, on average, over 5 and 7 years, respectively. |
Membership Rewards | Membership Rewards The Membership Rewards program al lows enrolled Card Members to earn points that can be redeemed for a broad range of rewards including travel, entertainment, retail certificates and merchandise. The Company records a balance sheet liability that represents management’s best estimate of th e cost of points earned that are expected to be redeemed in the future. The weighted average cost ( WAC ) per point and the Ultimate Redemption Rate ( URR ) are key assumptions used to estimate the Membership Rewards liability. The expense for Membership Rew ards points is included in marketing, promotion, rewards and Card Member services expenses. The Company periodically evaluates its liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner c ontract changes and other factors. |
Stock-based Compensation | Stock O ptions Each stock option has an exercise price equal to the market price of the Company’s common stock on the date of gran t and a contractual term of 10 years from the date of grant. Stock options generally vest 100 percent on the third anniversary of the grant date. Restricted Stock Awards RSAs are valued based on the stock price on the date of grant , contain either a) service conditions or b) both service and performance conditions, and generally vest 25 percent per year beginning with t he firs t anniversary of the grant date. RSAs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned depends on the achievement of predetermined Company metrics. All RSA holders receive non-forfeitable dividends or dividend equivalents. Liability-based Awards Certain employees are awarded PGs and other incentive awards that can be settled with cash or equity shares at the Company’s discretion and final Compensation and Benefits Committee payout approval. These awards earn value based on performance, market and service conditions, and vest over periods of one to three years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterl y as part of compensation expense over the vesting period. |
Retirement Plans | Defined Contribution Retirement Plans The Company sponsors defined contribution retirement plans, the principal plan being the Retirement Savings Plan (RSP), a 401(k) savings plan with a profit-sharing component. The RSP is a tax-qualified retirement plan subject to the Employee Retirement Income Securit y Act of 1974 and covers most employees in the United S tates . Defined Benefit Pension and other postretirement benefit Plans The Company’s primary defined benefit pension plans that c over certain employees in the United S tates and United Kingdom are closed to new entrants and existing participants do not accrue any additional benefits. Most employees outside the U nited States and United Kingdom are covered by local retirement plans, some of which are funded, while other employees receiv e payments at the time of retirement or termination under applicable labor laws or agreements. The Company complies with minimum funding requirements in all countries. The Company sponsors unfunded other postretirement benefit plans that provide health car e and life insurance to certain retired U.S. employees. The Company recognizes the funded sta tus of its defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation , in the Consolidated Balance Sheets. |
Legal Contingencies | Legal 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 “Legal Proceedings ”. The Company has recorded reserves for certain of its outstanding legal proceedings. A reser ve is record ed 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, deve lopments 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 range of possible losses, as applicable. The Company’s legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members. These legal proceedings involve various lines of business of the Company and a variety of claims (including, but not limited to, common law tort, contract, a ntitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against the Company specify the damages claimed by the plaintiff 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 unsupported. As a result, some matters have not yet progressed sufficiently thro ugh 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 , while other matters have progressed sufficiently such that the Company is able to estimate a n amount of loss or a range of possible loss . For those disclosed material legal proceedings 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 reserve , and for w hich the Company is able to estimate a range of possible loss, the current estimated range is zero to $ 350 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 significantly. As such proceedings evolve, including the merchant claims described under “Legal Proceedings , ” the Company may need to increase its range of possible loss o r reserves for legal contingencies. Based on its current knowledge, and taking into consideration its litigation-related liabilities, the Company believes it is not a party to, nor are any of its properties the subject of, any legal proceeding that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, it is possible that the outcome of legal proceedings, including the possible resolution of merch ant claims, could have a material impact on the Company’s results of operations. |
Derivatives Financial Instruments and Hedging Activities | A majority of the Company’s derivative assets and liabilities as of December 31, 2015 and 2014 , are subject to master netting agreements with its derivative counterparties. As noted previously , the Company has no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets. Derivative Financial Instruments That Qualify For Hedge Accounting Derivatives executed for hedge accountin g purposes are documented and designated as such when the Comp any enters into the contracts. In accordance with its risk management policies, the Company structures its hedges with terms similar to those of the item being hedged. The Company formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or c ash flows of the hedged items. These assessments usually are made through t he application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, the Company will discontinue the application of hedge accounting. Fair Value Hedges A fair value hedge involves a derivative designat ed to hedge the Company’s exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof , that is attributable to a particular risk. Interest Rate Contracts The Com pany 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. To the extent the fair value hedge is effective, the gain or loss on the hedging i nstrument offsets the loss or gain on the hedged item attributable to the hedged risk. Any difference between the changes in the fair value of the derivative and the hedged item is referred to as hedge ineffectiveness and is reflected in earnings as a comp onent of O ther expenses. Hedge ineffectiveness may be caused by differences between a debt instrument’s interest coupon and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the valuation of the interest rate swap. Furthermore, hedge ineffectiveness may be caused by changes in the relationship between 3-month LIBOR and 1-month LIBOR, as well as between the overnight indexed swap rate (OIS) and 1-month LIBOR, as spreads between these rates may impact the valuation of the interest rate swap without causing an offsetting impact in the value of the hedged debt. If a fair value hedge is de-designated or no longer considered to be effective, changes in fair value of the derivative continue to be recorded through earnings but the hedged asset or liability is no longer adjusted for changes in fair value resulting from changes in interest rates . The existing basis adjustment of the hedged asset or liability is amortized or accreted as an adjustment to yield over the remaining life of that asset or liability. Total Return Contract The Company hedged its exposure to changes in the fair value of its equity investment in ICBC in local currency . The Company used a 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. Net Investment Hedges A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. The Company primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to changes in currency exchange rates on the Company’s investments in non-U.S. subsidiaries. Derivatives Not Designated As Hedges The Company has derivatives that act as economic hedges , but are not designated as such for hedge accounting purposes. Foreign currency transactions and non-U.S. dollar cash flow exposures from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards, options and cross-currency swaps. These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of des ignated currencies at an agreed upon rate for settlement on a specified date. The changes in the fair value of the derivatives effectively offset the related foreign exchange gains or losses on the underlying balance sheet exposures . F rom time to time, the Company also may enter into interest rate swaps to specifically manage funding costs related to its proprietary card business. The Company also has certain operating agreements containing payments that may be linked to a market rate or price, pr imaril y foreign currency rates. The payment components of these agreements may meet the definition of an embedded derivative, in which case the embedded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. For derivatives that are not designated as hedges, changes in fair value are reported in current period earnings. |
Fair Value Measurements | Fair Values Fair value is defined as the price that would be re quired to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or , in the absence of a principal, most advantageous market for t he specific asset or liability. GAAP provide s for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 ― Inputs that are quoted prices ( unadjusted) for identical assets or liabilities in active markets that the entity can access . Level 2 ― Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantiall y the full term of the asset or liability, including: - Quoted prices for similar assets or liabilities in active markets ; - Quoted prices for identical or similar assets or liabilities in markets that are not active ; - Inputs other than quoted prices that are observable for the asset or liability ; and - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 ― Inputs that are unobservable and reflect the Company’s own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company d id not measure any financial instruments presented on the Consolidated Balance Sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31 , 2015 and 2014 , although the disclosed fair va lue of certain assets that are not carried at fair value, as presented later in this Note, are classified within Level 3. The Company monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, the Company disclose s the fair value measurement at the beginning of the reporting period during which the transfer occurred. For the years ended December 31, 2015 and 2014, there were no significant transfers between levels. Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Fair Value For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table above ) the Company applies the following valuation techniques : Investment Securities When available, quoted prices of identical investment securities in active markets are used to estimate fair value. Such investment securities are classified within Level 1 of the fair value hierarchy. When quoted prices of identical investment securities in active market s are not available, the fair values for the Company’s investment securities are obtained primarily from pricing services engaged by the Company, and the Company receives one price for each security. The fair values provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. Such investmen t securities are classified within Level 2 of the fair value hierarchy. The inputs to the valuation techniques applied by the pricing services vary depending on the type of security being priced but are typically benchmark yields, benchmark security prices , credit spreads, prepayment speeds, reported trades and broker-dealer quotes, all with reasonable levels of transparency. The pricing services did not apply any adjustments to the pricing models used. In addition, the Company did not apply any adjustments to prices received from the pricing services. The Company reaffirms its understanding of the valuation techniques used by its pricing services at least annually. In addition, the Company corroborates the prices provided by its pricing services for reason ableness by comparing the prices from the respective pricing services to valuations obtained from different pricing sources . In instances where price discrepancies are identified between different pricing sources, the Company evaluates such discrepancies t o ensure that the prices used for its valuation represent the fair value of the underlying investment securities. Refer to Note 5 for additional fair value information. Derivative Financial Instruments The fair value of the Company’s derivative financ ial instruments is estimated by third-party valuation service s that use proprietary pricing models or by internal pricing models, where the inputs to those models are readily observable from actively quoted markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. The Company reaffirms its understanding of the valuation techniques used by the third-party valuation services at least annually. The Company’s derivative instruments are cla ssified within Level 2 of the fair value hierarchy. The fair value of the Company’s interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amou nt, fixed coupon rate, floating coupon rate (based on interbank rates consistent with the frequency and currency of the interest cash flows) and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the c ash flows are denominated. The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturi ty dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve, used to value derivatives are not indicative of the credit quality of the Company or its counterparties. The Company considers the counterparty credit risk by applying an observable forecasted default rate to the c urrent exposure. Refer to Note 14 for additional fair value information. |
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. For the Company, guarantees primarily consist of card and travel protection programs, including: Return Protection — refunds the price of qualifying purchases made with the eligible card s where the merchant will not accept the return for up to 90 days from the date of purchase; and Merchant Protection — protects Card Members primarily against non-delivery of goods and services, usually in the event of bankruptcy or liquidation of a merchant. When this occurs, the Card Member may dispute the transaction for which the Company will generally credit the Card Member ’s account. If the Company is unable to collect the amount from the merchant, it wi ll bear the loss for the amount credited to the Card Member. The largest component of the maximum potential future payments relates to Card Member transactions associated with travel-related merchants, primarily through business arrangements where the Company has remitted payment to such merchants for a Card Member travel purchase that has not yet been used or “flown. ” 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 indemnifi cations . 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. |
Income Tax Uncertainties | The Company is subject to the income tax laws of the United States , its states and municipalities and those of the foreign jurisdictions in which the Company operat es. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, the Company must make judgments in assessing the likelihood that a tax position will be susta ined upon examination by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with t he taxing authority given the facts, circumstances and information available at the reporting date. The Company adjusts the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. |
Income Taxes | The Company records a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances as of December 31, 2015 and 2014 are associated with net operating losses and other deferred tax assets in certain non-U.S. operations of the Company. Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. |
Regulatory Matters And Capital Adequacy [Policy Text Block] | Restricted Net Assets of Subsidiaries Certain of the Company’s subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on the Company’s shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. As of December 31, 2015 , the aggregate amount of net assets of subsidiaries that are restricted to be transferred to the Company was approximately $ 11.3 billion. Bank Holding Company Dividend Restrictions The Company is limited in its ability to p ay dividends by the Federal Reserve , which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial cond ition. Moreover, bank holding companies are required by statu t e to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, the Company i s required to develop and maintain a capital plan, which includes planned dividends over a two-year horizon, and to submit the capital plan to the Federal Reserve. Banks’ Dividend Restrictions In the years ended December 31, 2015 and 2014 , Centurio n Bank paid dividends from retained earnings to its parent of $ 2.0 billion and $ 1.9 billion, respectively, and FSB paid dividends from retained earnings to its parent of $ 2.2 billion and $ 2.1 billion, respectively. The Banks are subject to statutory and regulatory limitations on their ability to pay dividends. The total amount of dividends that may be paid at any date, subject to supervisory considerations of the Banks’ regulators, is general ly limited to the retained earnings of the respective bank. As of December 31, 2015 and 2014 , the Banks’ retained earnings, in the aggregate, available for the payment of dividends were $ 3.2 billion and $ 3.6 billion, respectively. In de te rmining the dividends to pay their parent, the Banks must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, the Banks’ banking regulator s have authority to limit or prohibit the payment of a dividend by the Banks under a num ber of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the fin ancial condition of the banking organization. |
Segment Reporting | 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 ) . The Company considers a combination of factors when evaluating the composition of its reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States) , and regulatory environment considerations. T he following is a brief description of t he primary business activities of the Company’s four reportable operating segments: USCS offers a wide range of card products and services to consumers and small businesses in the United States, provides travel services to Card Members and other consumers, and operates a coalition loyalty business . ICS offers a wide range of card products and services to consumer s and small business es out side the United States, provides travel services to Card Members and other consumers, and operates a coalition loyalty business in various countries . GCS offers global corporate payment services to l arge and mid-sized companies. The Company’s business travel operations, which had been included in GCS, were deconso lidated effective June 30, 2014 in connection with t he formation of the GBT JV, discussed previously. Therefore, there is a lack of comparability against periods p rior to the deconsolidation. The Company’s proportional share of the GBT JV net income or loss is reported within Other revenues. GNMS operates a global payments network that processes and settles proprietary and non-proprietary card transactions. GNMS acquires merchants ; leverages the Company’s global closed-loop network to offer multi-channel marketing programs and capabilities, services and repo rting and analytical data to the Company’s merchants around the world; and provides financing products for qualified merchants. It also enters into partnership agreements with third-party card issuers and acquirers to license the American Express brand and broaden the Card Member and merchant base for the Company’s network worldwide . Corporate functions and certain other businesses, including the Company’s EG business, as well as other Company operations are included in Corporate & Other. Total Revenues Net of Interest Expense The Company allocates discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the USCS, ICS and GCS segments, discount revenue reflects the issuer component of the overall discount revenue generated by each segment ’ s Card Members; within the GNMS segment, discount revenue reflects the network and acquirer component of the overall discount revenue. Net card fees and travel commissions and fees are directly attributabl e to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment f unding requirements and internal funding rates. Provisions for Losses The provisions for losses are directly attributable to the segment in which they are reported. Expenses Marketing and promotion expenses are included in each segment based on actual expenses incurred, with the exception of brand advertising, which is primarily reflected in the GNMS and USCS segment s . Rewards and Card Member services expenses are included in each segment based on actual expenses incurred within each segment. Salaries and employee benefits and other operating expenses includes expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, e xpenses related to support services, such as technology costs , are allocated to each segment primarily based on support service activities directly attributable to the segment. Other overhead expenses, such as staff group support functions, are allocated from Corporate & Other to the other segments based on a mix of each segment’s direct consumption of services and relative level of pretax income. Capital Each business segment is allocated capital based on established business model operating requirements, risk measures and regulatory capital requirements. The busi ness model operating requirements include capital needed to support operations and specific balance sheet items. The risk measures include considerations for credit, market and operational risk. Income Taxes An income tax provision (benefit) is allocated to each business segment based on the effective tax rates applicable to various businesses that comprise the segment. |
Accounts Receivable and Loans (
Accounts Receivable and Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Card Member receivables segment detail | Accounts receivable by segment as of December 31, 2015 and 2014 consisted of: (Millions) 2015 2014 U.S. Card Services (a) $ 23,255 $ 22,468 International Card Services 6,975 7,653 Global Commercial Services (b) 13,777 14,583 Global Network & Merchant Services (c) 126 147 Card Member receivables (d) 44,133 44,851 Less: Reserve for losses 462 465 Card Member receivables, net $ 43,671 $ 44,386 Other receivables, net (e) $ 3,024 $ 2,614 Includes $ 6.6 billion and $ 7.0 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2015 and 2014 , respectively . Includes $ 319 million and $ 636 million due from airlines, of which Delta Air Lines (Delta) comprises $ 257 million and $ 606 million as of December 31, 2015 and 2014 , respectively. Includes receivables primarily related to the Company’s International Currency Card portf olios. Includes approximately $ 11.9 billion and $ 13.3 billion of Card Member receivables outside the United States as of December 31, 2015 and 2014 , respectively . Other receivables primarily represent amounts related to ( i ) certain merchants for billed discount revenue and (ii) GNS partner banks for items such as royalty and franchise fees . Other receivables are presented net of reserves for losses of $ 43 million and $ 61 million as of December 31, 2015 and 2014 , respectively. |
Card Member loans segment detail | Loans by segment as of December 31, 2015 and 2014 consisted of: (Millions) 2015 2014 U.S. Card Services (a) $ 51,446 $ 62,592 International Card Services 7,072 7,744 Global Commercial Services 55 49 Card Member loans 58,573 70,385 Less: Reserve for losses 1,028 1,201 Card Member loans, net $ 57,545 $ 69,184 Other loans, net (b) $ 1,254 $ 920 Includes approximately $ 23.6 billion and $ 30.1 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2015 and 2014 , respectively. Other loans primarily represent loans to merchants . Other loans are presented net of reserves for losses of $ 20 million and $ 12 million as of December 31, 2015 and 2014 , respectively . |
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of December 31, 2015 and 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 $ 50,929 $ 154 $ 112 $ 251 $ 51,446 International Card Services 6,961 34 25 52 7,072 Card Member Receivables: U.S. Card Services $ 22,896 $ 118 $ 73 $ 168 $ 23,255 International Card Services 6,875 28 21 51 6,975 Global Commercial Services (a) (b) (b) (b) 124 13,777 30-59 60-89 90+ Days Days Days Past Past Past 2014 (Millions) Current Due Due Due Total Card Member Loans: U.S. Card Services $ 61,995 $ 179 $ 128 $ 290 $ 62,592 International Card Services 7,621 39 27 57 7,744 Card Member Receivables: U.S. Card Services $ 22,096 $ 129 $ 72 $ 171 $ 22,468 International Card Services 7,557 29 20 47 7,653 Global Commercial Services (a) (b) (b) (b) 120 14,583 For Card Member receivables in GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes . Delinquency data for periods other than 90 days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances . |
Credit quality indicators for loans and receivables | The following table s present the key credit quality indicators as of or for the years ended December 31 : 2015 2014 Net Write-Off Rate Net Write-Off Rate 30+ 30+ Principal, Days Past Due Principal, Days 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 % 1.5 % 1.7 % 1.0 % International Card Services 1.9 % 2.4 % 1.6 % 2.0 % 2.4 % 1.6 % Card Member Receivables: U.S. Card Services 1.7 % 1.9 % 1.5 % 1.6 % 1.8 % 1.7 % International Card Services 2.0 % 2.2 % 1.4 % 1.9 % 2.1 % 1.3 % 2015 2014 Net Loss Net Loss Ratio as 90+ Ratio as 90+ a % of Days Past Billing a % of Days Past Billing Charge as a % of Charge as a % of Volume Receivables Volume Receivables Card Member Receivables: Global Commercial Services 0.09 % 0.9 % 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, b ecause the Company considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. The year ended December 31, 2015, reflects the impact of a change in the timing of charge-offs for Card Member loans and receivables in certain modification programs from 180 days past due to 120 days past due, which was fully recognized during the three months ended March 31, 2015 . |
Impaired Card Member loans and receivables | The following table s provide additional information with respect to the Company’s impaired Card Member loans and receivables . Impaired Card Member loans are not significant for GCS and impaired Card Member receivables are not significant for International Card Services (ICS) and GCS; therefore, these segments are not included in the following tables. As of December 31, 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 $ 164 $ 150 $ 172 $ 107 $ 593 $ 548 $ 53 International Card Services 52 ― ― ― 52 51 ― Card Member Receivables: U.S. Card Services ― ― 27 6 33 33 20 Total $ 216 $ 150 $ 199 $ 113 $ 678 $ 632 $ 73 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 As of December 31, 2013 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 $ 167 $ 294 $ 351 $ 812 $ 775 $ 78 International Card Services 54 4 5 63 62 ― Card Member Receivables: U.S. Card Services ― ― 50 50 49 38 Total $ 221 $ 298 $ 406 $ 925 $ 886 $ 116 The Company’s policy is generally to accrue interest through the date of write-off (typically 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 primarily 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 $ 20 million, $26 million and $ 29 mi l l ion that are over 90 days past due and accruing interest and $ 18 million, $ 34 millio n and $ 43 million that are non-accrual as of December 31, 2015 , 2014 and 2013, respectively . In Program TDRs include Card Member accounts that are currentl y enrolled in a modification program. Out of Pro gram TDRs include $84 million of Card Member accounts that have successfully complete d a modification program and $29 million of Card Member accounts that were not in compliance with the terms of the modification program s. The following table provides information with respect to the Company’s average balances of, and interest income recognized from, impaired Card Member loans and the average balances of impaired Card Member receivables for the years ended December 31: Average Interest Income 2015 (Millions) Balance Recognized Card Member Loans: U.S. Card Services $ 673 $ 59 International Card Services 54 14 Card Member Receivables: U.S. Card Services 33 ― Total $ 760 $ 73 Average Interest Income 2014 (Millions) Balance Recognized Card Member Loans: U.S. Card Services $ 750 $ 49 International Card Services 62 16 Card Member Receivables: U.S. Card Services 47 ― Total $ 859 $ 65 Average Interest Income 2013 (Millions) Balance Recognized Card Member Loans: U.S. Card Services $ 948 $ 46 International Card Services 67 16 Card Member Receivables: U.S. Card Services 81 ― Total $ 1,096 $ 62 |
Troubled debt restructurings | The following table provides additional information with respect to the U.S. Card Services ( USCS ) Card Member loans and receivables modified as TDRs for the year s ended December 31, 2015, 2014 and 2013 . 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 . Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions 2015 (in thousands) ($ in millions) (% points) (# of months) Troubled Debt Restructurings: Card Member Loans 40 $ 285 9 (b) Card Member Receivables 12 147 (c) 12 Total 52 $ 432 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions 2014 (in thousands) ($ in millions) (% points) (# of months) Troubled Debt Restructurings: Card Member Loans 46 $ 342 10 (b) Card Member Receivables 15 176 (c) 12 Total 61 $ 518 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions 2013 (in thousands) ($ in millions) (% points) (# of months) Troubled Debt Restructurings: Card Member Loans 60 $ 448 10 (b) Card Member Receivables 20 247 (c) 12 Total 80 $ 695 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. For the year ended December 31, 2013, i n certain modifications, the principal balance was reduced in the aggregate by $4 million . For the years ended December 31, 2015 and 2014, m odifications 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 years ended December 31, 2015 , 2014 and 2013 , with respect to the USCS Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification . A Card Member is considered in default of a modification program after one and up to two consecutive missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables . Outstanding Number of Balances Accounts Upon Default 2015 (thousands) (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 8 $ 52 Card Member Receivables 3 5 Total 11 $ 57 Outstanding Number of Balances Accounts Upon Default 2014 (thousands) (b) (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 8 $ 52 Card Member Receivables 3 12 Total 11 $ 64 Outstanding Number of Balances Accounts Upon Default 2013 (thousands) (millions) (a)(b) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 18 $ 141 Card Member Receivables 3 25 Total 21 $ 166 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans , and principal and fees on Card Member receivables . The number of accounts and 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) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31: (Millions) 2015 2014 2013 Balance, January 1 $ 465 $ 386 $ 428 Provisions (a) 737 792 648 Net write-offs (b) (713) (683) (669) Other (c) (27) (30) (21) Balance, December 31 $ 462 $ 465 $ 386 Provisions for principal and fee reserve components. C onsist s of principal and fee components, less recoveries of $ 401 million, $ 358 million and $ 402 million , including net write-offs from TDRs of $ 60 million, $ 15 million and $ 12 million, for the years ended December 31, 2015 , 2014 and 2013 , respectively . I ncludes foreign currency translation adjustments of $ (16) million, $ (15) million and $ (4) million for the years ended December 31, 2015 , 2014 and 2013 , respectively; and other adjustment s of $ (11) million, $ (8) million and $ (17) million for the years ended December 31, 2015 , 2014 and 2013 , respectively . Additionally , 2015 includes the impact of the transfer of the HFS receivables portfolio, which was not significant , and 2014 includes an adjustment related to reserves for card-related fraud losses of $(7) million, whic h was reclassified to O ther liabilities. |
Card Member receivables and related reserves evaluated separately and collectively for impairment | The fo llowing table presents Card Member receivables evaluated individually and collectively for impairment, and related reserves, as of December 31: (Millions) 2015 2014 2013 Card Member receivables evaluated individually for impairment (a) $ 33 $ 48 $ 50 Related reserves (a) $ 20 $ 35 $ 38 Card Member receivables evaluated collectively for impairment $ 44,100 $ 44,803 $ 44,113 Related reserves (b) $ 442 $ 430 $ 348 Re presents 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 years ended December 31: (Millions) 2015 2014 2013 Balance, January 1 $ 1,201 $ 1,261 $ 1,471 Provisions (a) 1,190 1,138 1,115 Net write-offs Principal (b) (967) (1,023) (1,141) Interest and fees (b) (162) (164) (150) Transfer of reserves on HFS loan portfolios (224) ― ― Other (c) (10) (11) (34) Balance, December 31 $ 1,028 $ 1,201 $ 1,261 Provisions for principal interest and fee reserve components . Co nsists of principal write-offs, less recoveries of $ 418 million, $ 428 million and $ 452 million, including net write-offs /( recoveries) from TDRs of $ 41 million , $ (10) million and $ (1) million, for the years ended December 31 , 2015 , 2014 and 2013 , respectively. Recoveries of interest and fees were de minimis . I nclude s foreign currency translation adjustment s of $ (20) million, $ (17) million and $ (12) million for the years ended December 31 , 2015 , 2014 and 2013 , respectively, and other adjustment s of $ 10 million, $ 12 m illion and $ (22) million for the years ended December 31 , 2015 , 2014 and 2013 , respectively. Additionall y, 2014 includes an adjustment related to reserves for card-related fraud losses of $(6 ) million , which were reclassified to O ther liabilities. |
Card Member loans and related reserves evaluated separately and collectively for impairment | The following table presents Card Member loans evaluated individually and collectively for impairment , and related reserves , as of December 31: (Millions) 2015 2014 2013 Card Member loans evaluated individually for impairment (a) $ 279 $ 286 $ 356 Related reserves (a) $ 53 $ 67 $ 78 Card Member loans evaluated collectively for impairment (b) $ 58,294 $ 70,099 $ 66,882 Related reserves (b) $ 975 $ 1,134 $ 1,183 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans , and reserves for internal and external qualitative risk factors that apply to loans that are collect ively evaluated for impairment. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of December 31: 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 $ 2,813 $ 85 $ (5) $ 2,893 $ 3,366 $ 129 $ (2) $ 3,493 U.S. Government agency obligations 2 ― ― 2 3 ― ― 3 U.S. Government treasury obligations 406 4 (1) 409 346 4 ― 350 Corporate debt securities 29 1 ― 30 37 3 ― 40 Mortgage-backed securities (a) 117 4 ― 121 128 8 ― 136 Equity securities (b) 1 ― ― 1 ― 1 ― 1 Foreign government bonds and obligations 250 6 (1) 255 350 9 ― 359 Other (c) 50 ― (2) 48 50 ― (1) 49 Total $ 3,668 $ 100 $ (9) $ 3,759 $ 4,280 $ 154 $ (3) $ 4,431 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. 2013 amount primarily represents the Company’s investment in the Industrial and Commercial Bank of China (ICBC), the remaining amount of which was sold in the third quarter of 2014 . 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 December 31 : 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 $ 100 $ (3) $ 13 $ (2) $ ― $ ― $ 72 $ (2) U.S. Government treasury obligations 253 (1) ― ― ― ― ― ― Foreign government bonds and obligations 99 (1) ― ― ― ― ― ― Other ― ― 33 (2) ― ― 33 (1) Total $ 452 $ (5) $ 46 $ (4) $ ― $ ― $ 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 December 31: Less than 12 months 12 months or more Total Gross Gross Gross Ratio of Fair Value to Number of Estimated Unrealized Number of Estimated Unrealized Number of Estimated Unrealized Amortized Cost (Dollars in millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2015: 90%–100% 52 $ 450 $ (5) 15 $ 37 $ (2) 67 $ 487 $ (7) Less than 90% ― ― ― 2 9 (2) 2 9 (2) Total as of December 31, 2015 52 $ 450 $ (5) 17 $ 46 $ (4) 69 $ 496 $ (9) 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 | Weighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2015 were as follows: Due after 1 Due after 5 Due within year but years but Due after (Millions) 1 year within 5 years within 10 years 10 years Total State and municipal obligations (a) $ 23 $ 61 $ 277 $ 2,532 $ 2,893 U.S. Government agency obligations ― ― ― 2 2 U.S. Government treasury obligations 120 144 132 13 409 Corporate debt securities 6 24 ― ― 30 Mortgage-backed securities (a) 1 ― ― 120 121 Foreign government bonds and obligations 190 23 ― 42 255 Total Estimated Fair Value $ 340 $ 252 $ 409 $ 2,709 $ 3,710 Total Cost $ 340 $ 247 $ 395 $ 2,635 $ 3,617 Weighted average yields (b) 2.86 % 2.78 % 5.48 % 6.58 % 5.85% 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. Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent. |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Restricted cash held by trusts | The following table presents the restricted cash held by the Charge Trust and the Lending Trust as of December 31, 2015 and 2014 , included in Other Assets on the Company’s Consolidated Balance Sheets: (Millions) 2015 2014 Charge Trust $ 2 $ 2 Lending Trust 153 62 Total $ 155 $ 64 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Other assets | The following is a summary of O ther assets as of December 31: (Millions) 2015 2014 Goodwill $ 2,749 $ 3,024 Deferred tax assets, net (a) 2,231 2,110 Prepaid expenses (b) 851 1,626 Other intangible assets, at amortized cost 796 854 Community Reinvestment Act Tax Credit investments 638 622 Restricted cash (c) 477 384 Derivative assets (a) 282 711 Other 2,045 2,011 Total $ 10,069 $ 11,342 Refer to Notes 14 and 21 for a discuss ion of derivative assets and deferred tax assets, net , respectively, as of December 31, 2015 and 2014 . For 2015 and 2014 , $80 million and $96 million, respectively, of foreign deferred tax liabilities is reflected in Other Liabilities. Derivative assets reflect the impact of master netting agreements. Includes prepaid miles and reward points acquired primarily from airline partners of approximately $ 0.3 billion and $ 1.1 billion as of December 31, 2015 and 2014 , respectively, including approximately nil and $ 0.6 billion, respectively, from Delta. Includes restricted cash of approximately $ 155 m illion and $ 64 million as of December 31, 2015 and 2014 , respectively, which is primarily held for coupon and certain asset-backed securitization maturities. |
Changes in carrying amount of goodwill | Goodwill The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments and Corporate & Other were as follows: Corporate & (Millions) USCS ICS GCS GNMS Other Total Balance as of January 1, 2014 $ 174 $ 1,052 $ 1,543 $ 160 $ 269 $ 3,198 Acquisitions ― ― ― ― ― ― Dispositions ― ― (102) ― ― (102) Other, including foreign currency translation ― (70) ― ― (2) (72) Balance as of December 31, 2014 $ 174 $ 982 $ 1,441 $ 160 $ 267 $ 3,024 Acquisitions ― ― ― ― ― ― Dispositions ― ― ― ― ― ― Other, including impairment and foreign currency translation (a) ― (53) ― ― (222) (275) Balance as of December 31, 2015 $ 174 $ 929 $ 1,441 $ 160 $ 45 $ 2,749 Includes a $219 million impairment charge within Corporate & Other . Refer to Note 2 for additional information. |
Components of other intangible assets | The components of other intangible assets were as follows: 2015 2014 (Millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships (a) $ 1,506 $ (836) $ 670 $ 1,455 $ (754) $ 701 Other 231 (105) 126 255 (102) 153 Total $ 1,737 $ (941) $ 796 $ 1,710 $ (856) $ 854 Includes net intangibles related to airline partners of $ 255 million and $ 340 million as of December 31, 2015 and 2014 , respectively, including approximately $ 165 million and $ 206 million, respectively, related to Delta. |
Estimated amortization expense for other intangible assets | Estimated amortization expense for other intangible assets over the next five years is as follows: (Millions) 2016 2017 2018 2019 2020 Estimated amortization expense $ 174 $ 156 $ 146 $ 106 $ 76 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Deposits By Component Alternative | As of December 31 , customer deposits we re categorized as interest-bearing or non-interest - bearing as follows (Millions) 2015 2014 U.S.: Interest-bearing $ 54,102 $ 43,279 Non-interest-bearing (includes Card Member credit balances of: 2015, $389 million; 2014, $372 million) 478 418 Non-U.S.: Interest-bearing 82 115 Non-interest-bearing (includes Card Member credit balances of: 2015, $323 million; 2014, $347 million) 335 359 Total customer deposits $ 54,997 $ 44,171 |
Deposits By Type | Customer deposits by deposit type as of December 31 were as follows: (Millions) 2015 2014 U.S. retail deposits: Savings accounts ― Direct $ 29,023 $ 26,159 Certificates of deposit: Direct 281 333 Third-party (brokered) 13,856 7,838 Sweep accounts ―Third-party (brokered) 10,942 8,949 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 183 173 Card Member credit balances ― U.S. and non-U.S. 712 719 Total customer deposits $ 54,997 $ 44,171 |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of December 31, 2015 we re as follows: (Millions) U.S. Non-U.S. Total 2016 $ 2,486 $ 7 $ 2,493 2017 3,630 ― 3,630 2018 3,180 ― 3,180 2019 2,326 ― 2,326 2020 2,515 ― 2,515 Total $ 14,137 $ 7 $ 14,144 |
Time Deposits $250,000 Or More | As of December 31 , certificates of deposit in denominations of $25 0,000 or more , in the aggregate, were as follows: (Millions) 2015 2014 U.S. $ 105 $ 111 Non-U.S. 1 17 Total $ 106 $ 128 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Short-term borrowings | The Company’s short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2015 2014 (Millions, except percentages) Outstanding Balance Year-End Stated Rate on Debt (a) Outstanding Balance Year-End Stated Rate on Debt (a) Commercial paper $ 2,120 0.38 % $ 769 0.29 % Other short-term borrowings (b)(c) 2,692 1.11 2,711 0.81 Total $ 4,812 0.79 % $ 3,480 0.69 % For floating-rate iss uances, the stated interest rates are weighted based on the outstanding balances and floating rates in effect as of December 31, 2015 and 2014 . Includes interest-bearing overdrafts with banks of $ 410 million and $ 470 million as of December 31, 2015 and 2014 , respectively. In addition, balances include a partially drawn secured borrowing facility (maturing on September 15, 2017) , certain book overdrafts (i.e., primarily timing differences arising in the ordin ary course of business), short-term borrowings from banks, as well as interest-bearing amounts due to merchants in accordance with merchant service agreements. The secured borrowing facility gives the Company the right to sell up to $ 2.0 billion fa ce amount of eligible certificates issued from the Lending Trust. The Company paid $ 6.7 million and $ 7.0 million in fees to maintain the secured borrowing facility in 2015 and 2014 , respectively. |
Long-term debt | The Compa ny’s long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2015 2014 (Millions, except percentages) Original Contractual Maturity Dates Outstanding Balance (a) Year-End Stated Rate on Debt (b) Year-End Effective Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Stated Rate on Debt (b) Year-End Effective Interest Rate with Swaps (b)(c) American Express Company (Parent Company only) Fixed Rate Senior Notes 2016-2042 $ 7,546 5.15 % 4.25 % $ 7,535 5.15 % 4.20 % Floating Rate Senior Notes 2018 850 0.97 ― 850 0.85 ― Subordinated Notes (d) 2024-2036 1,347 5.39 4.47 1,350 5.39 4.42 American Express Credit Corporation Fixed Rate Senior Notes 2016-2020 16,469 2.16 1.28 16,260 2.26 1.22 Floating Rate Senior Notes 2016-2020 5,300 0.98 ― 4,400 0.82 ― Borrowings under Bank Credit Facilities ― ― ― ― 3,672 4.25 ― American Express Centurion Bank Fixed Rate Senior Notes 2017 1,319 5.99 4.75 2,089 4.12 3.32 Floating Rate Senior Notes 2018 125 0.81 ― 675 0.68 ― American Express Bank, FSB Fixed Rate Senior Notes 2017 1,000 6.00 ― 999 6.00 ― Floating Rate Senior Notes 2017 300 0.62 ― 300 0.46 ― American Express Charge Trust II Floating Rate Senior Notes 2018 2,200 0.67 ― 3,700 0.41 ― Floating Rate Subordinated Notes 2018 87 0.97 ― 87 0.80 ― American Express Lending Trust Fixed Rate Senior Notes 2016-2017 4,000 1.35 ― 6,100 1.11 ― Floating Rate Senior Notes 2017-2019 7,025 0.82 ― 8,876 0.72 ― Fixed Rate Subordinated Notes ― ― ― ― 300 1.08 ― Floating Rate Subordinated Notes 2017-2019 316 0.97 ― 488 0.73 ― Other Fixed Rate Instruments (e) 2021-2033 29 5.62 ― 143 3.09 ― Floating Rate Borrowings 2016-2019 244 0.66 ― % 247 0.59 ― % Unamortized Underwriting Fees (96) (116) Total Long-Term Debt $ 48,061 2.44 % $ 57,955 2.34 % The outstanding balances include ( i ) unamortized discount and premium, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Under fair value hedge accounting, the outstanding balances on these fixed-rate notes are adjusted to reflect the impact of changes in fair value due to changes in interest rates. Refer to No te 14 for more details on the Company’s treatment of fair value hedges. For floating-rate issuances, the stated and effective interest rates are weighted based on the outstanding balances and floating rates in effect as of December 31, 2015 and 2014 . Effective interest rates are only presented when swaps are in place to hedge the underlying debt. For the $ 750 million of subordinated debentures issued in 2006 and outstanding as of December 31, 2015 , the maturity date will automatically be extended to September 1, 2066, except in the case of either ( i ) a prior redemption or (ii) a default. At the Company’s option, the subordinated debentures are redeemable for cash on or after September 1, 2016, at 100 percent of the principal amounts plus an y accrued but unpaid interest. Includes $ 29 million and $ 31 million as of December 31, 2015 and 2014 , respectively, related to capitalized lease transactions. |
Aggregate annual maturities on long-term debt obligations | Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2015 were as follows: (Millions) 2016 2017 2018 2019 2020 Thereafter Total American Express Company (Parent Company only) (a) $ 1,350 $ 1,500 $ 3,851 $ 641 $ ― $ 3,147 $ 10,489 American Express Credit Corporation 4,931 4,900 3,614 4,150 4,150 ― 21,745 American Express Centurion Bank ― 1,300 125 ― ― ― 1,425 American Express Bank, FSB ― 1,300 ― ― ― ― 1,300 American Express Charge Trust II ― ― 2,287 ― ― ― 2,287 American Express Lending Trust 500 6,639 2,885 1,317 ― ― 11,341 Other 33 83 124 4 ― 29 273 $ 6,814 $ 15,722 $ 12,886 $ 6,112 $ 4,150 $ 3,176 $ 48,860 Unamortized Underwriting Fees (96) Unamortized Discount and Premium (890) Impacts due to Fair Value Hedge Accounting 187 Total Long-Term Debt $ 48,061 The Company currently intends to exercise its redemption option related to the $750 million of Subordinated Debentures, subject to business and market conditions. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Summary of other liabilities | The following is a summary of O ther liabilities as of December 31: (Millions) 2015 2014 Membership Rewards liability $ 6,721 $ 6,521 Employee-related liabilities (a) 2,097 2,258 Card Member rebate and reward accruals (b) 2,238 2,073 Deferred card and other fees, net 1,343 1,308 Book overdraft balances 409 647 Other (c) 4,764 5,044 Total $ 17,572 $ 17,851 Employee-related liabilities include employee benefit plan obligations and incentive compensation. Card Member r ebate and reward accruals inclu de payments to third-party reward partners and cash-back reward costs. Other includes accruals for general operating expenses, client incentives , merchant rebates, payments to third - party card-issuing partners, advertising and promotion, restructuring and reengineering reserves , QAH unfunded commitments and derivatives. |
Carrying amount of deferred charge card and other fees | The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31, was as follows: (Millions) 2015 2014 Deferred card and other fees (a) $ 1,652 $ 1,615 Deferred direct acquisition costs (173) (176) Reserves for membership cancellations (136) (131) Deferred card and other fees, net $ 1,343 $ 1,308 Includes deferred fees for Membership Rewards program participants. |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Summary of Stock Option and RSA Activity | A summary of stock option and RSA activity as of December 31, 2015 , and changes during the year is presented below: Stock Options RSAs (Shares in thousands) Shares Weighted-Average Exercise Price Shares Weighted- Average Grant Price Outstanding as of December 31, 2014 (a) 13,416 $ 44.88 7,874 $ 64.48 Granted 301 83.30 3,069 81.99 Exercised/vested (2,921) 49.96 (3,003) 55.17 Forfeited (10) 49.22 (507) 75.99 Expired 34 50.04 ― ― Outstanding as of December 31, 2015 10,820 44.60 7,433 $ 74.67 Options vested and expected to vest as of December 31, 2015 10,820 44.60 ― ― Options exercisable as of December 31, 2015 9,809 $ 41.78 ― ― Outstanding as of December 31, 2014 , includes CEO market-based stock options of 687,000 that were previously disclosed separately . |
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest | The weighted-average remainin g contractual life and the aggregate intrinsic value (the amount by which the fair value of the Company’s stock exceeds the exercise price of the option) of the stock option s outstanding, exercisable, vested , and expected to vest as of December 31, 2015 , are as follows: Outstanding Exercisable Vested and Expected to Vest Weighted-average remaining contractual life (in years) 3.4 2.9 3.4 Aggregate intrinsic value (millions) $ 279 $ 273 $ 279 |
Weighted Average Assumptions Used | The fair value of each option is estimated on the date of grant using a Black- Scholes -Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2015 , 2014 and 2013 , the majority of which were options granted in the beginning of each year: 2015 2014 2013 Dividend yield 1.1 % 1.1 % 1.4 % Expected volatility (a) 37 % 38 % 39 % Risk-free interest rate 1.7 % 2.2 % 1.3 % Expected life of stock option ( in years ) (b) 6.7 6.7 6.3 Weighted-average fair value per option $ 29.20 $ 32.36 $ 21.11 The expected volatility is based on both weighted historical and implied volatilities of the Company’s common stock price. In 2015 , 2014 and 2013 , the expected life of stock options was determined using both historical data and expectations of option exercise behavior. |
Summary of Stock Plan Expenses | The comp onents of the Company’s total stock-based compensation expense (net of forfeitures) for the years ended December 31, are as follows: (Millions) 2015 2014 2013 Restricted stock awards (a) $ 190 $ 193 $ 208 Stock options (a) 12 13 23 Liability-based awards 32 84 119 Total stock-based compensation expense (b) $ 234 $ 290 $ 350 As of December 31, 2015 , the total unrecognized compensation cost related to unvested RSAs and options of $ 214 million and $ 3 million, respectively, will be recognized ratably over the weighted-average remaining vesting period of 2.1 years and 1.2 years, respectively . The total incom e tax benefit recognized in the Consolidated Statements of Income for stock-ba sed compensation arrangements for the years ended December 31, 2015 , 2014 and 2013 was $ 83 million, $ 104 million and $ 127 million, respectively. |
Commitments and Contigencies (T
Commitments and Contigencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Obligations under contractual agreements with co-brand partners | As of December 31, 2015 , the obligations under such arrangements were as follows : (Millions) 2016 $ 212 2017 76 2018 62 2019 43 2020 20 Thereafter 204 Total $ 617 |
Minimum aggregate rental commitment under noncancelable operating leases | As of December 31, 2015 , the minimum aggregate rental commitment under all non-cancelable operating leases (net of subleases of $ 37 million) was as follows: (Millions) 2016 $ 165 2017 149 2018 129 2019 105 2020 82 Thereafter 863 Total $ 1,493 |
Derivatives and Hedging Activ49
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following t able summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: Other Assets Other Liabilities Fair Value Fair Value (Millions) 2015 2014 2015 2014 Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges $ 236 $ 314 $ 9 $ 4 Foreign exchange contracts Net investment hedges 191 492 57 46 Total derivatives designated as hedging instruments 427 806 66 50 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (a) 117 185 135 114 Total derivatives, gross 544 991 201 164 Less: Cash collateral netting (b) (155) (158) ― (4) Derivative asset and derivative liability netting (c) (107) (122) (107) (122) Total derivatives, net (d) $ 282 $ 711 $ 94 $ 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 , with a fair value of $ 91 million as of December 31, 2014 , none of whi ch was sold or repledged . The Company did not have any such non-cash collateral as of December 31, 2015 . Additionally, the Company posted $ 149 million and $ 114 million as of December 31, 2015 and 2014 , respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Company’s Consolidated Balance Sheets and are not netted against the derivative balances. Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivativ e counterparty. The total net derivative assets and derivative li abilities 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 of its fixed-rate long-term debt and its investment in ICBC for the years ended December 31 : Gains (losses) recognized in income (Millions) Derivative contract Hedged item Net hedge Income Statement Amount Income Statement Amount ineffectiveness Derivative relationship Line Item 2015 2014 2013 Line Item 2015 2014 2013 2015 2014 2013 Interest rate contracts Other expenses $ (83) $ (143) $ (370) Other expenses $ 93 $ 148 $ 351 $ 10 $ 5 $ (19) Total return contract Other non-interest Other non-interest revenues $ ― $ 11 $ 15 revenues $ ― $ (11) $ (15) $ ― $ ― $ ― |
Impact of cash flow hedges and investment hedges on results of operations | Gains (losses) recognized in income Amount reclassified from AOCI into income Net hedge ineffectiveness Description (Millions) Income Statement Line Item 2015 2014 2013 Income Statement Line Item 2015 2014 2013 Net investment hedges: Foreign exchange contracts Other expenses $ ― $ 10 $ ― Other expenses $ 1 $ ― $ ― |
Derivative instruments gain loss recognized in income | The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s derivatives not designated as hedges for the years ended December 31 : Pretax gains (losses) Amount Description (Millions) Income Statement Line Item 2015 2014 2013 Interest rate contracts Other expenses $ ― $ ― $ 1 Foreign exchange contracts (a) Other expenses (39) 194 72 Cost of Card Member services 5 4 ― Total $ (34) $ 198 $ 73 F oreign exchange contracts include forwards and embedded foreign currency derivatives. |
Fair Values (Tables)
Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [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 described in the preceding paragraphs), as of December 31: 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 3,758 409 3,349 ― 4,430 350 4,080 ― Derivatives (a) 544 ― 545 ― 991 ― 991 ― Total assets 4,303 410 3,894 ― 5,422 351 5,071 ― Liabilities: Derivatives (a) 201 ― 201 ― 164 ― 164 ― Total liabilities $ 201 $ ― $ 201 $ ― $ 164 $ ― $ 164 $ ― Refer to Note 5 for the fair values of investment securities and to Note 14 for the fair values of derivative assets and liabilities, on a further disaggregated basis . |
Estimated fair value of financial assets and financial liabilities | The following table summarizes the estimated fair values of the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of December 31, 2015 and 2014 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 $ 23 $ 23 $ 22 $ 1 (a) $ ― Other financial assets (b) 47 47 ― 47 ― Financial assets carried at other than fair value Card Member loans and receivables HFS (d) 15 15 ― ― 15 Loans, net 59 60 (c) ― ― 60 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 67 67 ― 67 ― Financial liabilities carried at other than fair value Certificates of deposit (e) 14 14 ― 14 ― Long-term debt $ 48 $ 49 (c) $ ― $ 49 $ ― 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 (e) 8 8 ― 8 ― Long-term debt $ 58 $ 60 (c) $ ― $ 60 $ ― Reflects time deposits. Includes accounts receivable (including fair valu es of Card Member receivables of $ 6.7 billion and $ 7.0 billion held by a consolidated VIE as of December 31, 2015 and 2014 , respectively), restricted cash and other miscellaneous assets . Includes f air valu es of Card Member loans of $ 23.5 billion and $ 29.9 billion, and long-term debt of $ 13.6 billion and $ 19.5 billion held by consolidated VIEs as of December 31, 2015 and 2014 , respectively. Does not include any fair value associated with the Card Member account relationships. Refer to Note 2 for additional information . Presented as a component of customer deposits on the Consolidated Balance Sheets. |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Information related to guarantees | The following table provides information related to such g uarantees and indemnifications as of December 31: 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 37 67 Total $ 48 $ 45 $ 86 $ 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 eligible claims in relation to annual billed business volumes. Included in O ther liabilities on the Company’s Consolidated Balance Sheets. P rimarily includes guarantees related to the Com pany’s purchase protection, real estate and business dispositions . |
Common and Preferred Shares a52
Common and Preferred Shares and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Authorized shares and a reconciliation of common shares issued and outstanding | The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31 : (Millions, except where indicated) 2015 2014 2013 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 1,023 1,064 1,105 Repurchases of common shares (59) (49) (55) Other, primarily stock option exercises and restricted stock awards granted 5 8 14 Shares issued and outstanding as of December 31 969 1,023 1,064 Of the common shares authorized but unissued as of December 31, 2015 , approximately 51 million shares a re reserved for issuance under employee stock and employee benefit plans . |
Perpetual Fixed Rate Noncumulative Preferred Shares issued and outstanding | The Company has the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of December 31 , 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. |
Changes in Accumulated Other 53
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Components of comprehensive income (loss), net of tax | Changes in each component for the three years ended December 31 were as follows: (Millions) , net of tax (a) Net Unrealized Gains (Losses) on Investment Securities Net Unrealized Gains (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Losses (Gains) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2012 $ 315 $ ― $ (754) $ (488) $ (927) Net unrealized losses (159) ― ― ― (159) Decrease due to amounts reclassified into earnings (93) ― ― ― (93) Net translation loss of investments in foreign operations ― ― (589) ― (589) Net gains related to hedges of investments in foreign operations ― ― 253 ― 253 Pension and other postretirement benefit gains ― ― ― 89 89 Net change in accumulated other comprehensive (loss) income (252) ― (336) 89 (499) Balances as of December 31, 2013 63 ― (1,090) (399) (1,426) Net unrealized gains 104 ― ― ― 104 Decrease due to amounts reclassified into earnings (71) ― 5 ― (66) Net translation loss of investments in foreign operations ― ― (869) ― (869) Net gains related to hedges of investments in foreign operations ― ― 455 ― 455 Pension and other postretirement benefit losses ― ― ― (117) (117) Net change in accumulated other comprehensive income (loss) 33 ― (409) (117) (493) Balances as of December 31, 2014 96 ― (1,499) (516) (1,919) Net unrealized losses (37) ― ― ― (37) Decrease due to amounts reclassified into earnings (1) ― (1) ― (2) Net translation loss of investments in foreign operations ― ― (1,122) ― (1,122) Net gains related to hedges of investment in foreign operations ― ― 578 ― 578 Pension and other postretirement benefit losses ― ― ― (32) (32) Net change in accumulated other comprehensive loss (38) ― (545) (32) (615) Balances as of December 31, 2015 $ 58 $ ― $ (2,044) $ (548) $ (2,534) |
Accumulated Other Comprehensive Loss Income Tax Effect Disclosure Text Block | The following table shows the tax impact for the three years ended December 31 for the changes in each component of Accumulated Other Comprehensive Income: Tax expense (benefit) (Millions) 2015 2014 2013 Investment securities $ (20) $ 19 $ (142) Foreign currency translation adjustments (124) (64) (49) Net investment hedges 340 273 135 Pension and other postretirement benefit losses ― (46) 56 Total tax impact $ 196 $ 182 $ ― |
Reclassification out of accumulated other comprehensive (loss) income | The following table presents the effects of reclassifications out of Accumulated Other Comprehensive ( Loss ) Income and into the Consolidated Statement s of Income for the year s ended December 31 Gains (losses) recognized in earnings Description (Millions) Income Statement Line Item 2015 2014 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ 1 $ 111 Related income tax expense Income tax provision ― (40) Reclassification to net income related to available-for-sale securities 1 71 Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related hedges Other expenses 1 (9) Related income tax expense Income tax provision ― 4 Reclassification of foreign currency translation adjustments 1 (5) Total $ 2 $ 66 |
Non-Interest Revenue and Expe54
Non-Interest Revenue and Expense Detail (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Details of other commissions and fees | The following is a detail of O ther commissions and fees for the years ended December 31: (Millions) 2015 2014 2013 Foreign currency conversion fee revenue $ 852 $ 877 $ 877 Delinquency fees 788 722 667 Loyalty coalition-related fees 379 383 310 Service fees 361 366 375 Other (a) 137 160 185 Total Other commissions and fees $ 2,517 $ 2,508 $ 2,414 Other primarily include s revenu es from fees related to M embership R ewards programs. |
Details of other revenues | The following is a detail of Other revenues for the years ended December 31: (Millions) 2015 2014 2013 Gain on sale of investment in Concur Technologies $ ― $ 744 $ ― Global Network Services partner revenues 640 694 650 Gross realized gains on sale of investment securities 1 100 136 Other (a) 1,392 1,451 1,488 Total Other revenues $ 2,033 $ 2,989 $ 2,274 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 insura nce 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 for the years ended December 31: (Millions) 2015 2014 2013 Professional services $ 2,750 $ 3,008 $ 3,102 Occupancy and equipment 1,854 1,807 1,904 Goodwill and long-lived asset impairment (a) 384 ― ― Card and merchant-related fraud losses (b) 308 369 278 Communications 345 383 379 Gain on business travel joint venture transaction ― (630) ― Other (c) 1,152 1,152 1,133 Total Other expenses $ 6,793 $ 6,089 $ 6,796 Refer to Note 2 for additional information . Beginning January 1, 2015, merchant-related fraud losses 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 settlements, certain loyalty coalition-related expenses and foreign currency-related gains and losses (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in the year ended December 31 , 2015). Effective December 1, 2015, Other expenses includes the valuation allowance adjustment associated with the HFS portfolios. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Restructuring Charges | The following table summarizes the Company’s restructuring reserves activity for the years ended December 31, 2015 , 2014 and 2013 : (Millions) Severance Other (a) Total Liability balance as of December 31, 2012 $ 412 $ 58 $ 470 Restructuring charges, net of $4 in revisions (b) (7) 3 (4) Payments (206) (23) (229) Other non-cash (c) (3) (1) (4) Liability balance as of December 31, 2013 196 37 233 Restructuring charges, net of $35 in revisions (b) 383 28 411 Payments (93) (22) (115) Other non-cash (d) (51) (8) (59) Liability balance at December 31, 2014 435 35 470 Restructuring charges, net of $61 in revisions (b) (33) 7 (26) Payments (141) (14) (155) Other non-cash (c) (23) (5) (28) Liability balance as of December 31, 2015 (e) $ 238 $ 23 $ 261 Other pr imarily includes facility exit and contract termination costs. Revisions primarily relate to higher than anticipated redeployments of displaced employees to other positions within the Company , business changes and modifications to existing initiatives . Consists primarily of foreign exchange impacts . Consists of $ 42 million reserve transferred to the GBT JV in the second quarter of 2014 as part of the GBT sale and $ 17 million of foreign ex change and other non-cash charges. The majority of cash payments related to the remaining restructuring liabilities are expected to be completed in 2016 , and to a lesser extent certain contractual long-term severance arrangements and lease obligations are expected to be completed in 2017 and 20 20 , respectively. |
Restructuring charges, by reportable segment | The following table summarizes the Company’s restructu ring charges, net of revisions , by reportable operating segment and Corporate & Other for the year ended December 31, 2015 , and the cumulativ e amounts relating to the restructuring programs that were in progress during 2015 and initiated at various dates between 2009 and 2015 . Cumulative Restructuring Expense Incurred To Date On 2015 In-Progress Restructuring Programs Total Restructuring Charges, net (Millions) revisions Severance Other Total USCS $ (7) $ 35 $ ― $ 35 ICS (17) 198 ― 198 GCS (16) 113 ― 113 GNMS (1) 57 ― 57 Corporate & Other 15 154 73 227 (a) Total $ (26) $ 557 $ 73 $ 630 (b) Corporate & Other includes certain severance and other charges of $151 million related to Company wide support functions which were not allocated to the Company’s reportable operating segments, as these were corporate initiatives, which is consistent with how such charges were reported internally. As of December 31, 2015 , the total expenses to be incurred for previously approved restructuring activities that were in progress are not expected to be materially different than the cumulative expenses inc urred to date for these programs. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Components of income tax expense | The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2015 2014 2013 Current income tax expense: U.S. federal $ 2,107 $ 2,136 $ 1,730 U.S. state and local 335 264 288 Non-U.S. 416 412 514 Total current income tax expense 2,858 2,812 2,532 Deferred income tax expense (benefit): U.S. federal (23) 352 113 U.S. state and local (5) 39 4 Non-U.S. (55) (97) (120) Total deferred income tax expense (83) 294 (3) Total income tax expense $ 2,775 $ 3,106 $ 2,529 |
Effective income tax rate | A reconciliation of the U.S. federal statutory rate of 35 percent to the Company’s actual income tax rate for the years ended December 31 on continuing operations was as follows: 2015 2014 2013 U.S. statutory federal income tax rate 35.0 % 35.0 % 35.0 % (Decrease) increase in taxes resulting from: Tax-exempt income (1.7) (1.5) (1.6) State and local income taxes, net of federal benefit 2.8 2.7 3.1 Non-U.S. subsidiaries earnings (a) (1.8) (2.2) (2.8) Tax settlements (b) (0.2) (0.5) (1.9) Non deductible expenses (c) 0.9 ― ― All other ― 1.0 0.3 Actual tax rates (a) 35.0 % 34.5 % 32.1 % Results for all years primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely. Relate s to the resolution of tax matters in various jurisdictions. Relates to the nondeductible portion of the EG goodwill impairment . |
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabili ties as of December 31 are reflected in the following table: (Millions) 2015 2014 Deferred tax assets: Reserves not yet deducted for tax purposes $ 3,771 $ 3,926 Employee compensation and benefits 648 789 Other 520 266 Gross deferred tax assets 4,939 4,981 Valuation allowance (58) (75) Deferred tax assets after valuation allowance 4,881 4,906 Deferred tax liabilities: Intangibles and fixed assets 1,547 1,597 Deferred revenue 509 498 Deferred interest 323 350 Asset securitization ― 162 Investment in joint ventures 231 223 Other 120 62 Gross deferred tax liabilities 2,730 2,892 Net deferred tax assets $ 2,151 $ 2,014 |
Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits: (Millions) 2015 2014 2013 Balance, January 1 $ 909 $ 1,044 $ 1,230 Increases: Current year tax positions 81 4 124 Tax positions related to prior years 177 111 176 Decreases: Tax positions related to prior years (256) (181) (371) Settlements with tax authorities (15) (67) (94) Lapse of statute of limitations (26) (1) (21) Effects of foreign currency translations ― (1) ― Balance, December 31 $ 870 $ 909 $ 1,044 |
Earnings Per Common Share (EP57
Earnings Per Common Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2015 2014 2013 Numerator: Basic and diluted: Net income $ 5,163 $ 5,885 $ 5,359 Preferred dividends (62) ― ― Net income available to common shareholders 5,101 5,885 5,359 Earnings allocated to participating share awards (a) (38) (46) (47) Net income attributable to common shareholders $ 5,063 $ 5,839 $ 5,312 Denominator: (a) Basic: Weighted-average common stock 999 1,045 1,082 Add: Weighted-average stock options (b) 4 6 7 Diluted 1,003 1,051 1,089 Basic EPS $ 5.07 $ 5.58 $ 4.91 Diluted EPS $ 5.05 $ 5.56 $ 4.88 The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. T he dilutive effect of unexercise d stock options excludes from the computation of EPS 0.5 million, 0.2 million and 0.1 million of options f or the years ended December 31, 2015 , 2014 and 2013 , respectively, because inclusion of the options would have been anti-dilutive. |
Regulatory Matters and Capita58
Regulatory Matters and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Regulatory capital ratios | The following table presents the regulatory capital ratios for the Company and the Banks : CET1 Tier 1 Total CET1 Tier 1 Total Tier 1 capital capital capital leverage (Millions, except percentages) capital capital capital ratio ratio ratio ratio December 31, 2015: (a) American Express Company $ 16,747 $ 18,265 $ 20,551 12.4 % 13.5 % 15.2 % 11.7 % American Express Centurion Bank 6,013 6,013 6,460 16.9 16.9 18.2 17.7 American Express Bank, FSB 6,927 6,927 7,601 13.7 13.7 15.1 13.2 December 31, 2014: (a) American Express Company $ 17,525 $ 18,176 $ 20,801 13.1 % 13.6 % 15.6 % 11.8 % American Express Centurion Bank 6,174 6,174 6,584 18.8 18.8 20.1 18.7 American Express Bank, FSB 6,722 6,722 7,604 14.2 14.2 16.0 15.1 Well-capitalized ratios (b) 6.5 % (c) 8.0 % 10.0 % 5.0 % (d) Minimum capital ratios (b) 4.5 % 6.0 % 8.0 % 4.0 % Beginning in 2015, as a Basel III Advanced Approaches institution, capital ratios are reported using Basel III capital definitions, inclusive of transition provisions, and risk-weighted assets using the Basel III Standardized Approaches. As of December 31, 2014, capital ratios were reported using Basel III capital definitions, inclusive of transition provisions and Basel I risk-weighted assets. As defined by the regulations issued by the Federal Reserve, OCC and FDIC for the year ended December 31, 2015 . Beginning January 1, 2015, Basel III C ET1 well-capitalized ratios beca me relevant capital measures under the prompt and corrective action requirements defined by the regulations for Advanced Approaches institutions. Represents requirements for banking subsidiaries to be considered “well-capitalized” pursuant to regulations i ssued under the Federal Deposit Insurance Corporation Improvement Act. There is no “well-capitalized” definition for the Tier 1 leverage ratio for a bank holding company. |
Significant Credit Concentrat59
Significant Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Maximum credit exposure by category | The following table details the Company’s maximum credit exposure by category, including the credit exposure associated with derivative financial instruments, as of December 31: (Billions) 2015 2014 On-balance sheet: Individuals (a) $ 104 $ 101 Financial institutions (b) 25 25 U.S. Government and agencies (c) 4 4 All other (d) 17 17 Total on-balance sheet (e) 150 147 Unused lines-of-credit ― individuals (f) $ 297 $ 278 Individuals primarily include Card Member receivables and loans, including the HFS portfolios. Financial institutions primarily include debt obligations of banks, broker-dealers, insurance companies and savings and loan associations. U.S. Government and agencies represent debt obligations of the U.S. Government and its agencies, states and municipalities and government - sponsored entities. All other primarily includes Card Member receivables from other corporate institutions. Certain distinctions betwee n categories require management judgment. Because charge card products generally have no preset spending limit, the associated credit limit on charge products is not quantifiable. Therefore, the quantified unused line-of-credit amounts only include the ap proximate credit line available on lending products . |
Card Member loans and receivables exposure | The following table details the Company’s Card Member loans and receivables exposure (including unused lines-of-credit on Card Member loans) in the United States and outside the United States as of December 31: (Billions) 2015 2014 On-balance sheet: U.S. (a) $ 99 $ 94 Non-U.S. 19 21 On-balance sheet (b)(c) 118 115 Unused lines-of-credit ― individuals: U.S. (a) 259 234 Non-U.S. 38 44 Total unused lines-of-credit ― individuals $ 297 $ 278 Includes on-balance sheet Card Member loans and receivables HFS and unused lines-of-credit for Card Member loans HFS, as of December 31, 2015. Represents Card Member loans to individuals as well as receivables from individuals and corporate institutions as discussed in footnotes (a) and (d) from the previous table. The remainder of the Company’s on-bala nce sheet exposure includes cash, investmen ts, other loans, oth er receivables and other assets including der ivative financial instruments. These balances are primarily within the U nited S tates . |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Operating segment information | The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other as of or for the years ended December 31, 2015 , 2014 and 2013 : Corporate & (Millions, except where indicated) USCS ICS GCS GNMS Other (a) Consolidated 2015 Non-interest revenues $ 13,180 $ 4,321 $ 3,513 $ 5,236 $ 646 $ 26,896 Interest income 6,267 939 14 98 227 7,545 Interest expense 654 242 185 (194) 736 1,623 Total revenues net of interest expense 18,793 5,018 3,342 5,528 137 32,818 Total provisions (b) 1,453 329 148 54 4 1,988 Pretax income (loss) from continuing operations 5,355 508 1,073 2,775 (1,773) 7,938 Income tax provision (benefit) 1,942 87 407 1,004 (665) 2,775 Net income (loss) 3,413 421 666 1,771 (1,108) 5,163 Total assets (billions) (c) 117 35 18 24 (33) 161 Total equity (billions) 10.3 2.9 3.7 2.4 1.4 20.7 2014 Non-interest revenues 12,628 4,737 5,173 5,426 752 28,716 Interest income 5,786 1,085 15 52 241 7,179 Interest expense 604 330 240 (269) 802 1,707 Total revenues net of interest expense 17,810 5,492 4,948 5,747 191 34,188 Total provisions 1,396 370 180 93 5 2,044 Pretax income (loss) from continuing operations 5,100 449 2,408 2,620 (1,586) 8,991 Income tax provision (benefit) 1,900 38 865 960 (657) 3,106 Net income (loss) 3,200 411 1,543 1,660 (929) 5,885 Total assets (billions) (c) 113 31 19 18 (22) 159 Total equity (billions) 10.4 3.0 3.8 2.0 1.5 20.7 2013 Non-interest revenues 12,019 4,644 5,085 5,229 846 27,823 Interest income 5,565 1,118 13 32 277 7,005 Interest expense 693 361 245 (252) 911 1,958 Total revenues net of interest expense 16,891 5,401 4,853 5,513 212 32,870 Total provisions 1,250 388 129 67 (2) 1,832 Pretax income (loss) from continuing operations 4,994 643 1,244 2,469 (1,462) 7,888 Income tax provision (benefit) 1,801 12 384 894 (562) 2,529 Net income (loss) 3,193 631 860 1,575 (900) 5,359 Total assets (billions) (c) $ 104 $ 31 $ 19 $ 17 $ (18) $ 153 Total equity (billions) $ 9.3 $ 3.1 $ 3.7 $ 2.0 $ 1.4 $ 19.5 Corporate & Other includes adjustments and eliminations for intersegment activity. Effective December 1, 2015, in the USCS segment, total provision s does not include credit costs related to Card Member loans and receivables HFS, which are now reported in O ther expenses through a valuation allowance adjustment. As of September 30, |
Total revenues net of interest expense and pretax income | The following table presents the Company’s total revenues net of interest expense and pretax income (loss) from continuing operations i n different geographic regions: (Millions) United States EMEA (a) JAPA (a) LACC (a) Other Unallocated (b) Consolidated 2015 (c) Total revenues net of interest expense $ 24,791 $ 3,161 $ 2,649 $ 2,384 $ (167) $ 32,818 Pretax income (loss) from continuing operations 8,010 534 456 658 (1,720) 7,938 2014 (c) Total revenues net of interest expense $ 24,751 $ 3,767 $ 2,934 $ 2,888 $ (152) $ 34,188 Pretax income (loss) from continuing operations 8,869 525 463 683 (1,549) 8,991 2013 (c) Total revenues net of interest expense $ 23,641 $ 3,700 $ 2,952 $ 2,900 $ (323) $ 32,870 Pretax income (loss) from continuing operations 7,679 524 488 701 (1,504) 7,888 EMEA represents Europe, the Middle East and Africa ; JAPA represents Japan, Asia/Pacific and Australia ; and LACC represents Latin America, Canada and the Caribbean. Other U nallocated includes net costs which are not directly allocable to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses . The data in the above table is, in part, based upon internal allocations, which necessarily involve management’s judgment . |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Table Text Block [Abstract] | |
Condensed Statements of Income | P ARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2015 2014 2013 Revenues Non-interest revenues Gain on sale of securities $ ― $ 99 $ 135 Other 400 270 5 Total non-interest revenues 400 369 140 Interest income 172 141 134 Interest expense (526) (543) (583) Total revenues net of interest expense 46 (33) (309) Expenses Salaries and employee benefits 341 275 206 Other 443 357 261 Total 784 632 467 Pretax loss (738) (665) (776) Income tax benefit (268) (249) (297) Net loss before equity in net income of subsidiaries and affiliates (470) (416) (479) Equity in net income of subsidiaries and affiliates 5,633 6,301 5,838 Net income $ 5,163 $ 5,885 $ 5,359 |
Condensed Balance Sheets | PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2015 2014 Assets Cash and cash equivalents $ 6,400 $ 8,824 Investment securities 1 1 Equity in net assets of subsidiaries and affiliates 19,856 20,123 Accounts receivable, less reserves 311 134 Premises and equipment, less accumulated depreciation: 2015, $140; 2014, $106 133 139 Loans to subsidiaries and affiliates 11,762 7,809 Due from subsidiaries and affiliates 896 1,477 Other assets 275 365 Total assets 39,634 38,872 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 1,603 1,590 Due to subsidiaries and affiliates 716 964 Short-term debt of subsidiaries and affiliates 6,923 5,937 Long-term debt 9,719 9,708 Total liabilities 18,961 18,199 Shareholders’ Equity Preferred Shares ― ― Common shares 194 205 Additional paid-in capital 13,348 12,874 Retained earnings 9,665 9,513 Accumulated other comprehensive loss (2,534) (1,919) Total shareholders’ equity 20,673 20,673 Total liabilities and shareholders’ equity $ 39,634 $ 38,872 |
Condensed Cash Flows | PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2015 2014 2013 Cash Flows from Operating Activities Net income $ 5,163 $ 5,885 $ 5,359 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (5,633) (6,301) (5,838) Dividends received from subsidiaries and affiliates 5,331 5,455 4,768 Gain on sale of securities ― (99) (135) Other operating activities, primarily with subsidiaries and affiliates 332 173 324 Net cash provided by operating activities 5,193 5,113 4,478 Cash Flows from Investing Activities Sales of available-for-sale investment securities ― 111 157 Purchase of investments (3) ― ― Purchase of premises and equipment (29) (39) (39) Loans to subsidiaries and affiliates (3,952) (2,574) 1,498 Investments in subsidiaries and affiliates ― ― ― Net cash (used in) provided by investing activities (3,984) (2,502) 1,616 Cash Flows from Financing Activities (Principal payments on)/issuance of long-term debt ― (655) 843 Short-term debt of subsidiaries and affiliates 986 5,118 (1,497) Issuance of American Express preferred shares 841 742 ― Issuance of American Express common shares and other 192 362 721 Repurchase of American Express common shares (4,480) (4,389) (3,943) Dividends paid (1,172) (1,041) (939) Net cash provided by (used in) financing activities (3,633) 137 (4,815) Net increase (decrease) in cash and cash equivalents (2,424) 2,748 1,279 Cash and cash equivalents at beginning of year 8,824 6,076 4,797 Cash and cash equivalents at end of year $ 6,400 $ 8,824 $ 6,076 Supplemental cash flow information Non-cash financing activities Gain on business travel joint venture transaction $ ― $ 630 $ ― |
Quarterly Financial Data (una62
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quartertly Financial Data [Abstract] | |
Quarterly financial data | (Millions, except per share amounts) 2015 2014 Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues net of interest expense $ 8,391 $ 8,193 $ 8,284 $ 7,950 $ 9,081 $ 8,303 $ 8,631 $ 8,173 Pretax income 1,454 1,938 2,230 2,316 2,225 2,246 2,312 2,208 Net income 899 1,266 1,473 1,525 1,447 1,477 1,529 1,432 Earnings Per Common Share — Basic: Net income attributable to common shareholders (a) $ 0.89 $ 1.24 $ 1.43 $ 1.49 $ 1.40 $ 1.41 $ 1.44 $ 1.34 Earnings Per Common Share — Diluted: Net income attributable to common shareholders (a) 0.89 1.24 1.42 1.48 1.39 1.40 1.43 1.33 Cash dividends declared per common share 0.29 0.29 0.29 0.26 0.26 0.26 0.26 0.23 Common share price: High 77.85 81.66 81.92 93.94 94.89 96.24 96.04 94.35 Low $ 67.57 $ 71.71 $ 76.53 $ 77.12 $ 78.41 $ 85.75 $ 83.99 $ 82.63 Represents net income, less ( i ) earnings allocated to participating share awards of $ 6 million , $ 10 million , $ 11 million and $ 11 million for the quarter s ended December 31, September 30, June 30 and March 31, 2015 , respectively, and $ 11 million, $ 11 million , $ 12 million and $ 12 million for the quarter s ended December 31, September 30, June 30 and March 31, 2014 , respectively, and (ii) dividend s on preferred shares of $ 20 million, $ 22 million and $ 20 million, for the quarter s ended December 31, September 30 and June 30, 2015 , respectively, and nil for all other comparative periods. |
Summary of Significant Accoun63
Summary of Significant Accounting Policies (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Original maturities of cash and cash equivalents | 90 days or less | ||
Net foreign currency transaction gain | $ 68 | $ 44 | $ 108 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible Assets, Useful Life | 1 year | 5 years | |
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible Assets, Useful Life | 22 years | 7 years | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Building [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Building [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Acquisitions and Divestitures T
Acquisitions and Divestitures Textual ( Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Events Textuals [Abstract] | ||
Card Member loans and receivables held for sale | $ 14,992 | $ 0 |
CardMember Receivables And Loans Reserves | 224 | |
Total Impairment Charge | 384 | |
Impairment Of Goodwill Prepaid Services | 219 | |
Impairment Charge - Technology And Other Assets writedown to Fair Value | 165 | |
Gain on business travel joint venture transaction | $ 630 | |
Airline [Member] | JetBlue [Member] | ||
Business Events Textuals [Abstract] | ||
Card Member loans and receivables held for sale | 1,100 | |
Retail | Costco [Member] | ||
Business Events Textuals [Abstract] | ||
Card Member loans and receivables held for sale | $ 13,900 |
Accounts Receivable and Loans65
Accounts Receivable and Loans (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts receivable segment information | ||||
Card Member receivables | $ 44,133 | $ 44,851 | ||
Less: Reserve for losses | 462 | 465 | $ 386 | $ 428 |
Card Member receivables, net | 43,671 | 44,386 | ||
Other receivables, net | 3,024 | 2,614 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 43 | 61 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 6,649 | 7,025 | ||
Card Member receivables, net | 6,700 | 7,000 | ||
Non United States [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 11.9 | 13.3 | ||
U S Card Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 23,255 | 22,468 | ||
U S Card Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Card Member receivables available to settle obligations of consolidated variable interest entity | 6,600 | 7,000 | ||
International Card Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 6,975 | 7,653 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 13,777 | 14,583 | ||
Global Commercial Services [Member] | Airline [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 319 | 636 | ||
Global Commercial Services [Member] | Airline [Member] | Delta [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 257 | 606 | ||
Global Network And Merchant Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 126 | $ 147 |
Accounts Receivable and Loans66
Accounts Receivable and Loans (Details 1) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans segment information | ||||
Card Member loans | $ 58,573 | $ 70,385 | ||
Less: Reserve for losses | 1,028 | 1,201 | $ 1,261 | $ 1,471 |
Card Member loans, net | 57,545 | 69,184 | ||
Other loans, net | 1,254 | 920 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 20 | 12 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans | 23,559 | 30,115 | ||
U S Card Services [Member] | ||||
Loans segment information | ||||
Card Member loans | 51,446 | 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 | 23,600 | 30,100 | ||
International Card Services [Member] | ||||
Loans segment information | ||||
Card Member loans | 7,072 | 7,744 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans | $ 55 | $ 49 |
Accounts Receivable and Loans67
Accounts Receivable and Loans (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U S Card Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | $ 22,896 | $ 22,096 |
Total aging | 23,255 | 22,468 |
U S Card Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 50,929 | 61,995 |
Total aging | 51,446 | 62,592 |
U S Card Services [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 118 | 129 |
U S Card Services [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 154 | 179 |
U S Card Services [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 73 | 72 |
U S Card Services [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 112 | 128 |
U S Card Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 168 | 171 |
U S Card Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 251 | 290 |
International Card Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 6,875 | 7,557 |
Total aging | 6,975 | 7,653 |
International Card Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 6,961 | 7,621 |
Total aging | 7,072 | 7,744 |
International Card Services [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 28 | 29 |
International Card Services [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 34 | 39 |
International Card Services [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 21 | 20 |
International Card Services [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 25 | 27 |
International Card Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 51 | 47 |
International Card Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 52 | 57 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Total aging | 13,777 | 14,583 |
Global Commercial Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | $ 124 | $ 120 |
Accounts Receivable and Loans68
Accounts Receivable and Loans (Details 3) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
U S Card Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.40% | 1.50% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.60% | 1.70% |
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 | 1.70% | 1.60% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.90% | 1.80% |
30 Days Past Due as a % of Total | 1.50% | 1.70% |
International Card Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.90% | 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 | 2.00% | 1.90% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.20% | 2.10% |
30 Days Past Due as a % of Total | 1.40% | 1.30% |
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 | 0.90% | 0.80% |
Accounts Receivable and Loans69
Accounts Receivable and Loans (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | $ 216 | $ 218 | $ 221 |
Non-accrual loans | 150 | 241 | 298 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 199 | 334 | 406 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 113 | ||
Total impaired loans and receivables | 678 | 793 | 925 |
Unpaid principal balance | 632 | 750 | 886 |
Related allowance for Troubled Debt Restructurings | 73 | 102 | 116 |
Average balance of impaired loans | 760 | 859 | 1,096 |
Interest income recognized | 73 | 65 | 62 |
Accounts Receivable and Loans (Textuals) [Abstract] | |||
Total loans and receivables modified as a TDR, non-accrual | 18 | 34 | 43 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 20 | 26 | 29 |
Out of Program TDR accounts that completed modification programs | 84 | ||
Out of Program TDR accounts not in compliance with modification programs | 29 | ||
U S Card Services [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 164 | 161 | 167 |
Non-accrual loans | 150 | 241 | 294 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 172 | 286 | 351 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 107 | ||
Total impaired loans and receivables | 593 | 688 | 812 |
Unpaid principal balance | 548 | 646 | 775 |
Related allowance for Troubled Debt Restructurings | 53 | 67 | 78 |
Average balance of impaired loans | 673 | 750 | 948 |
Interest income recognized | 59 | 49 | 46 |
U S Card Services [Member] | Card Member Receivables [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accrual loans | 0 | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 27 | 48 | 50 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 6 | ||
Total impaired loans and receivables | 33 | 48 | 50 |
Unpaid principal balance | 33 | 48 | 49 |
Related allowance for Troubled Debt Restructurings | 20 | 35 | 38 |
Average balance of impaired loans | 33 | 47 | 81 |
Interest income recognized | 0 | 0 | 0 |
International Card Services [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 52 | 57 | 54 |
Non-accrual loans | 0 | 0 | 4 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 0 | 0 | 5 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 0 | ||
Total impaired loans and receivables | 52 | 57 | 63 |
Unpaid principal balance | 51 | 56 | 62 |
Related allowance for Troubled Debt Restructurings | 0 | 0 | 0 |
Average balance of impaired loans | 54 | 62 | 67 |
Interest income recognized | $ 14 | $ 16 | $ 16 |
Accounts Receivable and Loans70
Accounts Receivable and Loans (Details 5) pure in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Mbp | Dec. 31, 2014USD ($)Mbp | Dec. 31, 2013USD ($)Mbp | |
Accounts Receivable and Loans Textuals [Abstract] | |||
Difference between pre- and post-modification outstanding balances | $ 0 | $ 0 | $ 4 |
U S Card Services [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 52 | 61 | 80 |
Aggregated Outstanding Balance | $ 432 | $ 518 | $ 695 |
Card Member Loans [Member] | U S Card Services [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 40 | 46 | 60 |
Aggregated Outstanding Balance | $ 285 | $ 342 | $ 448 |
Average basis point reduction in interest rate by class of Card Member loans | bp | 9 | 10 | 10 |
Card Member Receivables [Member] | U S Card Services [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 12 | 15 | 20 |
Aggregated Outstanding Balance | $ 147 | $ 176 | $ 247 |
Average payment term extension | M | 12 | 12 | 12 |
Accounts Receivable and Loans71
Accounts Receivable and Loans (Details 6) - U S Card Services [Member] pure in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 11 | 11 | 21 |
Aggregated Outstanding Balance Upon Payment Default | $ 57 | $ 64 | $ 166 |
Card Member Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 8 | 8 | 18 |
Aggregated Outstanding Balance Upon Payment Default | $ 52 | $ 52 | $ 141 |
Card Member Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 3 | 3 | 3 |
Aggregated Outstanding Balance Upon Payment Default | $ 5 | $ 12 | $ 25 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in the Card Member receivables reserve for losses | |||
Balance, January 1 | $ 465 | $ 386 | $ 428 |
Provision For Doubtful Accounts | (737) | (792) | (648) |
Card Member receivables net write-offs | 713 | 683 | 669 |
Other | 27 | 30 | 21 |
Balance, December 31 | $ 462 | $ 465 | $ 386 |
Reserves for Losses (Details 1)
Reserves for Losses (Details 1) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Abstract] | |||
Card Member receivables evaluated separately for impairment | $ 33 | $ 48 | $ 50 |
Reserves on Card Member receivables evaluated separately for impairment | 20 | 35 | 38 |
Card Member receivables evaluated collectively for impairment | 44,100 | 44,803 | 44,113 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 442 | $ 430 | $ 348 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in the Card Member loans reserve for losses | |||
Balance, January 1 | $ 1,201 | $ 1,261 | $ 1,471 |
Card Member loans provisions | 1,190 | 1,138 | 1,115 |
Card Member loans net write-offs - principal | (967) | (1,023) | (1,141) |
Card Member loans net write-offs - interest and fees | (162) | (164) | (150) |
Reserves transferred to Held for Sale portfolio | (224) | ||
Card Member loans reserves for losses - other | (10) | (11) | (34) |
Balance, December 31 | $ 1,028 | $ 1,201 | $ 1,261 |
Reserves For Losses (Details 3)
Reserves For Losses (Details 3) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Abstract] | |||
Card Member loans evaluated separately for impairment | $ 279 | $ 286 | $ 356 |
Reserves on Card Member loans evaluated separately for impairment | 53 | 67 | 78 |
Card Member loans evaluated collectively for impairment | 58,294 | 70,099 | 66,882 |
Reserves on Card Member loans evaluated collectively for impairment | $ 975 | $ 1,134 | $ 1,183 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for Card Member Receivables, Recoveries of Bad Debts | $ 401 | $ 358 | $ 402 |
Allowance for Card Member Loans, Recoveries of Bad Debts | 418 | 428 | 452 |
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | 60 | 15 | 12 |
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | 41 | (10) | (1) |
Card Member loans reserves for losses - other | 10 | 12 | (22) |
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 | (16) | (15) | (4) |
Card Member loans reserves for losses - other | (20) | (17) | (12) |
Other Items [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card Member receivables reserves for losses - other | $ (11) | $ (8) | $ (17) |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available for Sale Securities by Type | |||
Cost | $ 3,668 | $ 4,280 | |
Gross Unrealized Gains | 100 | 154 | |
Gross Unrealized Losses | (9) | (3) | |
Estimated Fair Value | 3,759 | 4,431 | $ 0 |
State and municipal obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 2,813 | 3,366 | |
Gross Unrealized Gains | 85 | 129 | |
Gross Unrealized Losses | (5) | (2) | |
Estimated Fair Value | 2,893 | 3,493 | 0 |
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 | 0 |
U.S. Government treasury obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 406 | 346 | |
Gross Unrealized Gains | 4 | 4 | |
Gross Unrealized Losses | (1) | 0 | |
Estimated Fair Value | 409 | 350 | 0 |
Corporate debt securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 29 | 37 | |
Gross Unrealized Gains | 1 | 3 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 30 | 40 | 0 |
Mortgage-backed securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 117 | 128 | |
Gross Unrealized Gains | 4 | 8 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 121 | 136 | 0 |
Equity securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 1 | 0 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 1 | 1 | 0 |
Foreign government bonds and obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 250 | 350 | |
Gross Unrealized Gains | 6 | 9 | |
Gross Unrealized Losses | (1) | 0 | |
Estimated Fair Value | 255 | 359 | 0 |
Other [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 50 | 50 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (2) | (1) | |
Estimated Fair Value | $ 48 | $ 49 | $ 0 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 452 | $ 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 | (5) | 0 |
Gross Unrealized Losses, 12 months or more | (4) | (3) |
State and municipal obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 100 | 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 | (3) | 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 | 99 | 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 |
U.S. Government treasury obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 253 | 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 |
Mortgage-backed securities [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 0 |
Estimated Fair Value, 12 months or more | 0 | 0 |
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 | 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 | $ (2) | $ (1) |
Investment Securities (Detail79
Investment Securities (Details 2) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)securities | Dec. 31, 2014USD ($)securities | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 52 | 0 |
Number of securities, 12 months or more | securities | 17 | 15 |
Number of securities, total | securities | 69 | 15 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 450 | |
Estimated Fair Value, 12 months or more | 46 | $ 105 |
Estimated Fair Value, Total | 496 | 105 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (5) | 0 |
Gross Unrealized Losses, 12 months or more | (4) | (3) |
Gross Unrealized Losses, Total | $ 9 | $ 3 |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 52 | 0 |
Number of securities, 12 months or more | securities | 15 | 15 |
Number of securities, total | securities | 67 | 15 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 450 | |
Estimated Fair Value, 12 months or more | 37 | $ 105 |
Estimated Fair Value, Total | 487 | 105 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (5) | 0 |
Gross Unrealized Losses, 12 months or more | (2) | (3) |
Gross Unrealized Losses, Total | $ 7 | $ 3 |
Ratio Of Fair Value To Amortized Cost Less Than Ninety Percent [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 0 | 0 |
Number of securities, 12 months or more | securities | 2 | 0 |
Number of securities, total | securities | 2 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 0 | |
Estimated Fair Value, 12 months or more | 9 | $ 0 |
Estimated Fair Value, Total | 9 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | (2) | 0 |
Gross Unrealized Losses, Total | $ 2 | $ 0 |
Investment Securities (Detail80
Investment Securities (Details 3) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | $ 340 |
Estimated Fair Value, Due after 1 year but within 5 years | 252 |
Estimated Fair Value, Due after 5 years but within 10 years | 409 |
Estimated Fair Value, Due after 10 years | 2,709 |
Total | 3,710 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | 340 |
Due after 1 year but within 5 years | 247 |
Due after 5 years but within 10 years | 395 |
Due after 10 years | 2,635 |
Total | $ 3,617 |
Weighted average yields | |
Weighted average yields, due within 1 year | 2.86% |
Weighted averge yields, due after 1 years but within 5 years | 2.78% |
Weighted averge yields, due after 5 years but within 10 years | 5.48% |
Weighted average yield, due after 10 years | 6.58% |
Weighted average yields, Total | 5.85% |
State and municipal obligations [Member] | |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | $ 23 |
Estimated Fair Value, Due after 1 year but within 5 years | 61 |
Estimated Fair Value, Due after 5 years but within 10 years | 277 |
Estimated Fair Value, Due after 10 years | 2,532 |
Total | 2,893 |
U.S. Government treasury obligations [Member] | |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 0 |
Estimated Fair Value, Due after 1 year but within 5 years | 0 |
Estimated Fair Value, Due after 5 years but within 10 years | 0 |
Estimated Fair Value, Due after 10 years | 2 |
Total | 2 |
U.S. Government agency obligations [Member] | |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 120 |
Estimated Fair Value, Due after 1 year but within 5 years | 144 |
Estimated Fair Value, Due after 5 years but within 10 years | 132 |
Estimated Fair Value, Due after 10 years | 13 |
Total | 409 |
Corporate debt securities [Member] | |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 6 |
Estimated Fair Value, Due after 1 year but within 5 years | 24 |
Estimated Fair Value, Due after 5 years but within 10 years | 0 |
Estimated Fair Value, Due after 10 years | 0 |
Total | 30 |
Mortgage-backed securities [Member] | |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 1 |
Estimated Fair Value, Due after 1 year but within 5 years | 0 |
Estimated Fair Value, Due after 5 years but within 10 years | 0 |
Estimated Fair Value, Due after 10 years | 120 |
Total | 121 |
Foreign government bonds and obligations [Member] | |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 190 |
Estimated Fair Value, Due after 1 year but within 5 years | 23 |
Estimated Fair Value, Due after 5 years but within 10 years | 0 |
Estimated Fair Value, Due after 10 years | 42 |
Total | $ 255 |
Investment Securities (Detail81
Investment Securities (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Securities (Details) [Abstract] | |||
Other-than-temporary impairments recognized during the period | $ 0 | $ 0 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% | 35.00% |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Securitized Trusts [Line Items] | ||
Restricted cash | $ 477 | $ 384 |
American Express Charge Trust [Member] | ||
Securitized Trusts [Line Items] | ||
Restricted cash | 2 | 2 |
American Express Lending Trust [Member] | ||
Securitized Trusts [Line Items] | ||
Restricted cash | 153 | 62 |
Restricted cash held by trusts [Member] | ||
Securitized Trusts [Line Items] | ||
Restricted cash | $ 155 | $ 64 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) $ in Billions | Dec. 31, 2015USD ($) |
American Express Travel Related Services Company Inc [Member] | |
Securitized Trusts [Line Items] | |
Subordinated securities owned | $ 1 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other Assets Details [Abstract] | |||
Goodwill | $ 2,749 | $ 3,024 | $ 3,198 |
Deferred tax assets, net | 2,231 | 2,110 | |
Prepaid expenses | 851 | 1,626 | |
Other intangible assets, at amortized cost | 796 | 854 | |
Community Reinvestment Act Tax Credit Investments | 638 | 622 | |
Derivative assets | 282 | 711 | |
Restricted cash | 477 | 384 | |
Other | 2,045 | 2,011 | |
Other assets (includes restricted cash of consolidated variable interest entities) | $ 10,069 | $ 11,342 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 3,024 | $ 3,198 |
Acquisitions | 0 | 0 |
Dispositions | 0 | (102) |
Other, including foreign currency translation | (275) | (72) |
Goodwill, Ending Balance | 2,749 | 3,024 |
U S Card Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 174 | 174 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | 0 | 0 |
Goodwill, Ending Balance | 174 | 174 |
International Card Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 982 | 1,052 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | (53) | (70) |
Goodwill, Ending Balance | 929 | 982 |
Global Commercial Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 1,441 | 1,543 |
Acquisitions | 0 | 0 |
Dispositions | 0 | (102) |
Other, including foreign currency translation | 0 | 0 |
Goodwill, Ending Balance | 1,441 | 1,441 |
Global Network And Merchant Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 160 | 160 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | 0 | 0 |
Goodwill, Ending Balance | 160 | 160 |
Corporate and Other [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 267 | 269 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | (222) | (2) |
Goodwill, Ending Balance | $ 45 | $ 267 |
Other Assets (Details 2)
Other Assets (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Components of other intangible assets | ||
Gross Carrying Amount | $ 1,737 | $ 1,710 |
Accumulated Amortization | (941) | (856) |
Net Carrying Amount | 796 | 854 |
Other Contracts [Member] | ||
Components of other intangible assets | ||
Gross Carrying Amount | 231 | 255 |
Accumulated Amortization | (105) | (102) |
Customer Relationships [Member] | ||
Components of other intangible assets | ||
Gross Carrying Amount | 1,506 | 1,455 |
Accumulated Amortization | $ (836) | $ (754) |
Other Assets (Details 3)
Other Assets (Details 3) $ in Millions | Dec. 31, 2015USD ($) |
Estimated amortization expense for other intangible assets | |
Estimated amortization expense, 2016 | $ 174 |
Estimated amortization expense, 2017 | 156 |
Estimated amortization expense, 2018 | 146 |
Estimated amortization expense, 2019 | 106 |
Estimated amortization expense, 2020 | $ 76 |
Other Assets (Details Textuals)
Other Assets (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Assets [Line Items] | |||
Prepaid expenses | $ 851,000,000 | $ 1,626,000,000 | |
Restricted cash | $ 477,000,000 | $ 384,000,000 | |
Amortization period of acquired finite-lived intangible assets | 5 years | 7 years | |
Other intangible assets, at amortized cost | $ 796,000,000 | $ 854,000,000 | |
Foreign deferred tax liabilities | 80,000,000 | 96,000,000 | |
Other Assets (Textuals) [Abstract] | |||
Goodwill impaired | 219,000,000 | 0 | |
Amortization expense | 183,000,000 | 174,000,000 | $ 193,000,000 |
Tax Credit Investments - Affordable Housing partnerships | 578,000,000 | 522,000,000 | |
Sale of Concur Technologies | 0 | 990,000,000 | 0 |
Gain on sale of investments in Concur Technologies | 0 | 744,000,000 | $ 0 |
Carrying amount of Concur Technologies | 246,000,000 | ||
QAH Tax Credits for equity method losses | 53,000,000 | 47,000,000 | |
Community Reinvestment Act Tax Credit Investments | 638,000,000 | 622,000,000 | |
QAH Investment Commitment | 139,000,000 | ||
Loss from Affordable Housing Projects Equity Method Investments | 50,000,000 | $ 48,000,000 | |
Affordable Housing Program Off Balance Sheet Obligation | $ 200,000,000 | ||
Earliest Year [Member] | |||
Other Assets [Line Items] | |||
Affordable Housing Tax Credits Commitment Year To Be Paid | 2,016 | ||
Latest Year [Member] | |||
Other Assets [Line Items] | |||
Affordable Housing Tax Credits Commitment Year To Be Paid | 2,029 | ||
Minimum [Member] | |||
Other Assets [Line Items] | |||
Intangible Assets, Useful Life | 1 year | 5 years | |
Maximum [Member] | |||
Other Assets [Line Items] | |||
Intangible Assets, Useful Life | 22 years | 7 years | |
Coupon and Certain Asset-Backed Securitization Maturities [Member] | |||
Other Assets [Line Items] | |||
Restricted cash | $ 155,000,000 | $ 64,000,000 | |
Airline [Member] | Customer Relationships [Member] | |||
Other Assets [Line Items] | |||
Other intangible assets, at amortized cost | 255,000,000 | 340,000,000 | |
Airline [Member] | Delta [Member] | Customer Relationships [Member] | |||
Other Assets [Line Items] | |||
Other intangible assets, at amortized cost | 165,000,000 | 206,000,000 | |
Prepaid Miles And Reward Points [Member] | Airline [Member] | |||
Other Assets [Line Items] | |||
Prepaid expenses | 300,000,000 | 1,100,000,000 | |
Prepaid Miles And Reward Points [Member] | Airline [Member] | Delta [Member] | |||
Other Assets [Line Items] | |||
Prepaid expenses | $ 0 | $ 600,000,000 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U.S.: | ||
Interest-bearing | $ 54,102 | $ 43,279 |
Non-interest-bearing | 478 | 418 |
Non-U.S.: | ||
Interest-bearing | 82 | 115 |
Non-interest-bearing | 335 | 359 |
Total customer deposits | 54,997 | 44,171 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 389 | 372 |
Non-U.S.: | ||
Non-interest-bearing | $ 323 | $ 347 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 29,023 | $ 26,159 |
Certificates of deposit - Direct | 281 | 333 |
Certificates of deposit - Third party | 13,856 | 7,838 |
Sweep accounts - Third party | 10,942 | 8,949 |
Non-U.S. deposits and U.S. non-interest bearing | 183 | 173 |
Card Member credit balances - U.S. and non-U.S. | 712 | 719 |
Total customer deposits | $ 54,997 | $ 44,171 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Dec. 31, 2015USD ($) |
Time Deposits By Maturity | |
2,016 | $ 2,493 |
2,017 | 3,630 |
2,018 | 3,180 |
2,019 | 2,326 |
2,020 | 2,515 |
Total | 14,144 |
United States [Member] | |
Time Deposits By Maturity | |
2,016 | 2,486 |
2,017 | 3,630 |
2,018 | 3,180 |
2,019 | 2,326 |
2,020 | 2,515 |
Total | 14,137 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,016 | 7 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
Total | $ 7 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Time Deposits 250000 Or More [Abstract] | ||
U.S. | $ 105 | $ 111 |
Non-U.S. | 1 | 17 |
Total | $ 106 | $ 128 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 4,812,000 | $ 3,480,000 |
Face amount of eligible notes issued | $ 2,000,000 | |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 0.79% | 0.69% |
Fees to maintain the secured financing facility | $ 6,700 | $ 7,000 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 2,120,000 | $ 769,000 |
Commercial Paper [Member] | Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 0.38% | 0.29% |
Other Short Term Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 2,692,000 | $ 2,711,000 |
Other Short Term Borrowings [Member] | Bank Overdrafts [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 410,000 | $ 470,000 |
Other Short Term Borrowings [Member] | Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 1.11% | 0.81% |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 48,061 | $ 57,955 |
Unamortized Underwriting Fees | $ (96) | $ (116) |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.44% | 2.34% |
Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 9,719 | $ 9,708 |
Fixed Rate Senior Notes Amount [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2016-2042 | |
Long-term Debt | $ 7,546 | $ 7,535 |
Year-End Effective Interest Rates with Swaps | 4.25% | 4.20% |
Fixed Rate Senior Notes Amount [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 5.15% | 5.15% |
Fixed Rate Senior Notes Amount [Member] | American Express Centurion Bank [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,017 | |
Long-term Debt | $ 1,319 | $ 2,089 |
Year-End Effective Interest Rates with Swaps | 4.75% | 3.32% |
Fixed Rate Senior Notes Amount [Member] | American Express Centurion Bank [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 5.99% | 4.12% |
Fixed Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2016-2020 | |
Long-term Debt | $ 16,469 | $ 16,260 |
Year-End Effective Interest Rates with Swaps | 1.28% | 1.22% |
Fixed Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.16% | 2.26% |
Fixed Rate Senior Notes Amount [Member] | American Express Bank, FSB [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,017 | |
Long-term Debt | $ 1,000 | $ 999 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Senior Notes Amount [Member] | American Express Bank, FSB [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 6.00% | 6.00% |
Fixed Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2016-2017 | |
Long-term Debt | $ 4,000 | $ 6,100 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 1.35% | 1.11% |
Floating Rate Senior Notes Amount [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,018 | |
Long-term Debt | $ 850 | $ 850 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.97% | 0.85% |
Floating Rate Senior Notes Amount [Member] | American Express Centurion Bank [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,018 | |
Long-term Debt | $ 125 | $ 675 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Centurion Bank [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.81% | 0.68% |
Floating Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2016-2020 | |
Long-term Debt | $ 5,300 | $ 4,400 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.98% | 0.82% |
Floating Rate Senior Notes Amount [Member] | American Express Bank, FSB [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,017 | |
Long-term Debt | $ 300 | $ 300 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Bank, FSB [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.62% | 0.46% |
Floating Rate Senior Notes Amount [Member] | American Express Charge Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,018 | |
Long-term Debt | $ 2,200 | $ 3,700 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Charge Trust II [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.67% | 0.41% |
Floating Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2017-2019 | |
Long-term Debt | $ 7,025 | $ 8,876 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.82% | 0.72% |
Floating Rate Subordinated Notes Amount [Member] | American Express Charge Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,018 | |
Long-term Debt | $ 87 | $ 87 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Subordinated Notes Amount [Member] | American Express Charge Trust II [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.97% | 0.80% |
Floating Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2017-2019 | |
Long-term Debt | $ 316 | $ 488 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.97% | 0.73% |
Convertible Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 6.80% | |
Convertible Subordinated Debt [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2024-2036 | |
Long-term Debt | $ 1,347 | $ 1,350 |
Year-End Effective Interest Rates with Swaps | 4.47% | 4.42% |
Convertible Subordinated Debt [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 5.39% | 5.39% |
Borrowings under Bank Credit Facilities [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | ― | |
Long-term Debt | $ 0 | $ 3,672 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Borrowings under Bank Credit Facilities [Member] | American Express Credit Corporation [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 4.25% |
Fixed Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | ― | |
Long-term Debt | $ 0 | $ 300 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 1.08% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2021-2033 | |
Long-term Debt | $ 29 | $ 143 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 5.62% | 3.09% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | Capitalized lease transactions | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 29 | $ 31 |
Floating Rate Borrowings [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2016-2019 | |
Long-term Debt | $ 244 | $ 247 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Borrowings [Member] | Other Subsidiaries [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.66% | 0.59% |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Aggregate annual maturities on long-term debt obligations | ||
2,016 | $ 6,814 | |
2,017 | 15,722 | |
2,018 | 12,886 | |
2,019 | 6,112 | |
2,020 | 4,150 | |
Thereafter | 3,176 | |
Total | 48,860 | |
Unamortized Underwriting Fees | (96) | $ (116) |
Unamortized Discount and Premium | (890) | |
Impacts due to Fair Value Hedge Accounting | 187 | |
Total long-term debt | 48,061 | 57,955 |
Parent Company [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,016 | 1,350 | |
2,017 | 1,500 | |
2,018 | 3,851 | |
2,019 | 641 | |
2,020 | 0 | |
Thereafter | 3,147 | |
Total | 10,489 | |
Total long-term debt | 9,719 | $ 9,708 |
American Express Centurion Bank [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,016 | 0 | |
2,017 | 1,300 | |
2,018 | 125 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total | 1,425 | |
American Express Credit Corporation [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,016 | 4,931 | |
2,017 | 4,900 | |
2,018 | 3,614 | |
2,019 | 4,150 | |
2,020 | 4,150 | |
Thereafter | 0 | |
Total | 21,745 | |
American Express Bank, FSB [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,016 | 0 | |
2,017 | 1,300 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total | 1,300 | |
American Express Charge Trust II [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 2,287 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total | 2,287 | |
American Express Lending Trust [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,016 | 500 | |
2,017 | 6,639 | |
2,018 | 2,885 | |
2,019 | 1,317 | |
2,020 | 0 | |
Thereafter | 0 | |
Total | 11,341 | |
Other Subsidiaries [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,016 | 33 | |
2,017 | 83 | |
2,018 | 124 | |
2,019 | 4 | |
2,020 | 0 | |
Thereafter | 29 | |
Total | $ 273 |
Debt (Details Textuals)
Debt (Details Textuals) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)M | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Debt Instrument [Line Items] | |||
Face amount of eligible notes from Charge Trust | $ 3,000 | ||
Debt (Textuals) [Abstract] | |||
Date, interest rate automatically extended, Convertible subordinated notes | Sep. 1, 2066 | ||
Principal outstanding of Subordinated Debentures | $ 750 | $ 750 | $ 750 |
Interest rate of convertible subordinated debt LIBOR rate plus an annual percentage after year five following the balance sheet date | 3-month LIBOR + 2.23% | ||
Convertible Subordinated Debentures Redeemable Percentage Of Principal | 100.00% | ||
Number of months prior to trigger determination date decline in tangible common equity | M | 18 | ||
Percentage of Decline in Tangible Common Equity | 10.00% | ||
Total bank lines of credit of the company | $ 3,000 | 6,700 | |
Unutilized total credit lines | 3,000 | 3,000 | |
Fees to maintain credit lines | $ 35.1 | 49.9 | |
Line of credit facility financial covenants combined earnings and fixed charges to fixed charges ratio required | 1.25 | ||
Total Interest Paid | $ 1,600 | 1,700 | $ 2,000 |
Weighted-average coupon rate on senior subordinated notes | 3.60% | ||
Senior Subordinated Notes | $ 600 | ||
American Express Charge Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of eligible notes draw downs | $ 1,000 | $ 2,500 | |
Specified date face amount of eligible notes issued | Jul. 15, 2018 | ||
Convertible Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Year-End Stated Rate on Debt | 6.80% |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of other liabilities | ||
Membership Rewards liability | $ 6,721 | $ 6,521 |
Employee-related liablities | 2,097 | 2,258 |
Rebate and reward accruals | 2,238 | 2,073 |
Deferred card and other fees, net | 1,343 | 1,308 |
Book overdraft balances | 409 | 647 |
Other | 4,764 | 5,044 |
Total | 17,572 | 17,851 |
Carrying amount of deferred charge card and other fees | ||
Deferred card and other fees | 1,652 | 1,615 |
Deferred direct acquisition costs | (173) | (176) |
Reserves for membership cancellations | (136) | (131) |
Total | $ 1,343 | $ 1,308 |
Stock Plans (Details)
Stock Plans (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Summary of Stock Option and RSA Activity | |
Beginning Balance, Shares | shares | 13,416 |
Granted, shares | shares | 301 |
Exercised, shares | shares | (2,921) |
Forfeited, shares | shares | (10) |
Expired, shares | shares | 34 |
Ending Balance, Shares | shares | 10,820 |
Beginning balance, weighted average exercise price | $ / shares | $ 44.88 |
Granted, weighted average exercise price | $ / shares | 83.3 |
Exercised, weighted average exercise price | $ / shares | 49.96 |
Forfeitures, weighted average exercise price | $ / shares | 49.22 |
Expired, weighted average exercise price | $ / shares | 50.04 |
Ending balance, weighted average exercise price | $ / shares | $ 44.6 |
Options vested and expected to vest, shares | shares | 10,820 |
Options vested and expected to vest, Weighted Average Exercise Price | $ / shares | $ 44.6 |
Options exercisable, shares | shares | 9,809 |
Options exercisable, Weighted Average Exercise Price | $ / shares | $ 41.78 |
Beginning balance, shares | shares | 7,874 |
Granted, shares | shares | 3,069 |
Vested, shares | shares | (3,003) |
Forfeited, shares | shares | (507) |
Ending balance, shares | shares | 7,433 |
Beginning Balance, Weighted Average Grant Price | $ / shares | $ 64.48 |
Granted, Weighted Average Grant Price | $ / shares | 81.99 |
Vested, Weighted Average Grant Price | $ / shares | 55.17 |
Forfeited, Weighted Average Grant Price | $ / shares | 75.99 |
Ending Balance, Weighted Average Grant Price | $ / shares | $ 74.67 |
Stock Plans (Details 1)
Stock Plans (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest | |
Weighted-average remaining contractual life, Outstanding | 3 years 4 months |
Aggregate intrinsic value, Outstanding | $ 279 |
Weighted-average remaining contractual life, Exercisable | 2 years 9 months |
Aggregate intrinsic value, Exercisable | $ 273 |
Weighted-average remaining contractual life, Vested and Expected to Vest | 3 years 4 months |
Aggregate intrinsic value, Vested and Expected to Vest | $ 279 |
Stock Plans (Details 2)
Stock Plans (Details 2) - Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Assumptions Used | |||
Dividend yield | 1.10% | 1.10% | 1.40% |
Expected volatility | 37.00% | 38.00% | 39.00% |
Risk-free interest rate | 1.70% | 2.20% | 1.30% |
Expected life of stock option (in years) | 6 years 7 months | 6 years 7 months | 6 years 3 months |
Weighted-average fair value per option | $ 29.2 | $ 32.36 | $ 21.11 |
Stock Plans (Details 3)
Stock Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 234 | $ 290 | $ 350 |
Stock Plans (Textuals) [Abstract] | |||
Total income tax benefit recognized in the income statement for stock-based compensation arrangements | 83 | 104 | 127 |
Restricted Stock Awards [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 190 | 193 | 208 |
Stock Plans (Textuals) [Abstract] | |||
Total unrecognized compensation cost | $ 214 | ||
Weighted-average remaining vesting period | 2 years 1 month | ||
Stock Option [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 12 | 13 | 23 |
Stock Plans (Textuals) [Abstract] | |||
Total unrecognized compensation cost | $ 3 | ||
Weighted-average remaining vesting period | 1 year 2 months | ||
Liability-Based Awards [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 32 | 84 | 119 |
Performance And Market-Based Stock Options [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 1 |
Stock Plans (Details Textuals)
Stock Plans (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Plans Details [Abstract] | |||
Common shares unissued and available for grant | 33,000,000 | 35,000,000 | 35,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of RSAs granted | $ 81.99 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Exercisable non-qualified stock option awards granted to CEO | 687,000 | ||
Chief Executive Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Non-qualified stock option awards granted to CEO | 2,750,000 | ||
Contractual term in years of stock option awards | 10 years | ||
Vesting period in years of stock option awards | 6 years | ||
Chief Executive Officer [Member] | Market-based conditions [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Aggregate grant date fair value | $ 10,500,000 | ||
Total compensation expense | 0 | $ 300,000 | $ 500,000 |
Chief Executive Officer [Member] | Performance-based conditions [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Aggregate grant date fair value | 33,800,000 | ||
Total compensation expense | $ 0 | 0 | 0 |
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights | Each stock option has an exercise price equal to the market price of the Company’s common stock on the date of grant and a contractual term of 10 years from the date of grant. Stock options generally vest 100 percent on the third anniversary of the grant date. | ||
Intrinsic value for options exercised | $ 87,000,000 | 245,000,000 | 374,000,000 |
Cash received from the exercise of stock options | 146,000,000 | 283,000,000 | 580,000,000 |
Tax benefit realized from income tax deductions from stock option exercises | $ 18,000,000 | 54,000,000 | 84,000,000 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights | RSAs are valued based on the stock price on the date of grant and generally vest 25 percent per year, beginning with the first anniversary of the grant date. | ||
Total fair value of shares vested | $ 247,000,000 | $ 298,000,000 | $ 336,000,000 |
Weighted-average grant date fair value of RSAs granted | $ 81.99 | $ 86.65 | $ 60.13 |
Liability-Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid upon vesting of PGs | $ 74,000,000 | $ 62,000,000 | $ 43,000,000 |
Retirement Plans (Details Textu
Retirement Plans (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined contribution retirement plans [Member] | |||
Retirement Plans (Textuals) [Abstract] | |||
Total expense for all defined contribution retirement plans | $ 224 | $ 272 | $ 281 |
Defined benefit pension and other postretirement benefit plans [Member] | |||
Retirement Plans (Textuals) [Abstract] | |||
Net funded status related to the defined benefit pension plans | 770 | 767 | |
Total expense for all defined contribution retirement plans | $ 23 | $ 24 | $ 59 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2015USD ($) |
Minimum aggregate rental commitment under all noncancelable operating leases | |
2,016 | $ 165 |
2,017 | 149 |
2,018 | 129 |
2,019 | 105 |
2,020 | 82 |
Thereafter | 863 |
Total | $ 1,493 |
Commitments and Contingencie105
Commitments and Contingencies (Details 1) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Details [Abstract] | |
2,016 | $ 212 |
2,017 | 76 |
2,018 | 62 |
2,019 | 43 |
2,020 | 20 |
Thereafter | 204 |
Total | $ 617 |
Commitments and Contingencie106
Commitments and Contingencies (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies (Textuals) [Abstract] | |||
Range of possible loss, minimum | $ 0 | ||
Range of possible loss, maximum | 350,000,000 | ||
Amount of rentals subject to subleasing arrangements | 37,000,000 | ||
Future minimum payments on capital leases due, in 2016 | 4,000,000 | ||
Future minimum payments on capital leases due, in 2017 | 4,000,000 | ||
Future minimum payments on capital leases due, in 2018 | 4,000,000 | ||
Future minimum payments on capital leases due, in 2019 | 4,000,000 | ||
Future minimum payments on capital leases due, in 2020 | 4,000,000 | ||
Future minimum payments on capital leases due, thereafter | 14,000,000 | ||
Total rental expense | $ 187,000,000 | $ 237,000,000 | $ 281,000,000 |
Derivatives and Hedging Acti107
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | $ 544 | $ 991 |
Total fair value of derivative liabilities | 201 | 164 |
Total derivatives assets, net | 282 | 711 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 544 | 991 |
Cash collateral netting | (155) | (158) |
Derivative asset and liability netting | (107) | (122) |
Total derivatives assets, net | 282 | 711 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 427 | 806 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 117 | 185 |
Other Assets [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 236 | 314 |
Other Assets [Member] | Fair Value Hedging [Member] | Total Return Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 0 | 0 |
Other Assets [Member] | Net Investment Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 191 | 492 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | 201 | 164 |
Cash collateral netting | 0 | (4) |
Derivative asset and liability netting | (107) | (122) |
Total derivatives liabilities, net | 94 | 38 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | 66 | 50 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | 135 | 114 |
Other Liabilities [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | 9 | 4 |
Other Liabilities [Member] | Fair Value Hedging [Member] | Total Return Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | 0 | 0 |
Other Liabilities [Member] | Net Investment Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | $ 57 | $ 46 |
Derivatives and Hedging Acti108
Derivatives and Hedging Activities (Details 1) - Fair Value Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Expense [Member] | Interest Rate Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative contract | $ (83) | $ (143) | $ (370) |
Hedged item | 93 | 148 | 351 |
Net hedge ineffectiveness | 10 | 5 | (19) |
Other Revenues [Member] | Total Return Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative contract | 0 | 11 | 15 |
Hedged item | 0 | (11) | (15) |
Net hedge ineffectiveness | $ 0 | $ 0 | $ 0 |
Derivatives and Hedging Acti109
Derivatives and Hedging Activities (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from AOCI into income | $ 0 | $ 0 | |
Net hedge ineffectiveness | 0 | 0 | $ 0 |
Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from AOCI into income | 0 | 10,000,000 | 0 |
Net hedge ineffectiveness | $ 1,000,000 | $ 0 | $ 0 |
Derivatives and Hedging Acti110
Derivatives and Hedging Activities (Details 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gains (losses) | $ (34,000,000) | $ 198,000,000 | $ 73,000,000 |
Interest Expense [Member] | Foreign exchange contracts [Member] | Long-term Debt [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gains (losses) | 0 | 0 | 0 |
Other Expense [Member] | Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gains (losses) | 0 | 0 | 1,000,000 |
Other Expense [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gains (losses) | (39,000,000) | 194,000,000 | 72,000,000 |
Cost Of Card Member Services [Member] | Foreign exchange contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gains (losses) | $ 5,000,000 | $ 4,000,000 | $ 0 |
Derivatives and Hedging Acti111
Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||
Net reduction in interest expense on long term debt and other | $ 284 | $ 283 | $ 346 |
Margin on interest rate swap not netted | 149 | 114 | |
Derivative [Line Items] | |||
Equity investment | 1 | 1 | |
Total derivatives assets, net | 282 | 711 | |
Not Sold Or Repledged [Member] | |||
Derivative [Line Items] | |||
Securities received as collateral | 0 | 91 | |
Risk Exposure Low [Member] | |||
Derivative [Line Items] | |||
Total derivatives assets, net | 0 | ||
Significant Counterparties [Member] | |||
Derivative [Line Items] | |||
Total derivatives assets, net | 0 | 0 | |
Total derivatives liabilities, net | 0 | ||
Fair Value Hedges [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 18,800 | 17,600 | |
Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 0 | ||
Net Investment Hedges [Member] | |||
Derivative [Line Items] | |||
Effective portion of gain (loss) on hedges | 577 | 455 | $ 253 |
Credit Valuation Adjustment [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | $ 0 | $ 0 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investment securities: | ||
Equity securities | $ 1 | $ 1 |
Debt securities and other | 3,758 | 4,430 |
Derivative assets | 544 | 991 |
Total assets | 4,303 | 5,422 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities | 1 | 1 |
Debt securities and other | 409 | 350 |
Derivative assets | 0 | 0 |
Total assets | 410 | 351 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities and other | 3,349 | 4,080 |
Derivative assets | 545 | 991 |
Total assets | 3,894 | 5,071 |
Level 3 [Member] | ||
Investment securities: | ||
Total assets | $ 0 | $ 0 |
Fair Values (Details 1)
Fair Values (Details 1) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Liabilities [Abstract] | ||
Derivative liabilities | $ 201 | $ 164 |
Total liabilities | 201 | 164 |
Level 1 [Member] | ||
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Liabilities [Abstract] | ||
Derivative liabilities | 201 | 164 |
Total liabilities | 201 | 164 |
Level 3 [Member] | ||
Liabilities [Abstract] | ||
Total liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | $ 22,762 | $ 22,288 | $ 19,486 | $ 22,250 |
Financial assets carried at other than fair value | ||||
Card Member loans and receivables held for sale | 14,992 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 14,144 | |||
Long-term debt | 48,061 | 57,955 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 43,671 | 44,386 | ||
Card Member loans, net | 57,545 | 69,184 | ||
Variable Interest Enterprise [Member] | ||||
Financial assets carried at other than fair value | ||||
Card Member loans and receivables held for sale | 4,966 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 13,602 | 19,516 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 6,700 | 7,000 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 23,000 | 22,000 | ||
Other financial assets | 47,000 | 48,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 59,000 | 70,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 67,000 | 61,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 14,000 | 8,000 | ||
Long-term debt | 48,000 | 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 | 23,000 | 22,000 | ||
Other financial assets | 47,000 | 48,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 60,000 | 71,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 67,000 | 61,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 14,000 | 8,000 | ||
Long-term debt | 49,000 | 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 | 13,600 | 19,500 | ||
Fair Values (Textuals) [Abstract] | ||||
Card Member loans, net | 23,500 | 29,900 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 22,000 | 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 | 47,000 | 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 | 67,000 | 61,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 14,000 | 8,000 | ||
Long-term debt | 49,000 | 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 | 60,000 | 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 | Dec. 31, 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 | Dec. 31, 2015 | Dec. 31, 2014 |
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 48,000 | $ 45,000 |
Amount of related liability | 86 | 111 |
Return and Merchant Protection [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 42,000 | 37,000 |
Amount of related liability | 49 | 44 |
Other Guarantees [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 6,000 | 8,000 |
Amount of related liability | $ 37 | $ 67 |
Common and Preferred Shares 117
Common and Preferred Shares and Warrants (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Authorized shares and a reconciliation of common shares issued and outstanding | |||
Common shares, authorized | 3,600 | 3,600 | 3,600 |
Shares issued and outstanding at beginning of year | 1,023 | 1,064 | 1,105 |
Repurchases of common shares | (59) | (49) | (55) |
Other, primarily stock option exercises and RSAs granted | 5 | 8 | 14 |
Shares issued and outstanding as of December 31 | 969 | 1,023 | 1,064 |
Stockholders' Equity Note (Textuals) [Abstract] | |||
Shares reserved for issuance under employee stock and employee benefit plans | 51 |
Common and Preferred Shares 118
Common and Preferred Shares and Warrants (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
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, paymentDates | 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, paymentDates | Beginning June 15, 2020 |
Fixed to floating rate, conversion date | Mar. 15, 2020 |
Common and Preferred Shares 119
Common and Preferred Shares and Warrants (Details Textuals) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 12, 2015 | |
Common And Preferred Shares And Warrants (Textuals) [Abstract] | ||||
Common share repurchases authorized | 150,000,000 | |||
Common shares repurchased | 58,800,000 | 49,000,000 | ||
Cost basis of common stock repurchased | $ 4,480,000,000 | $ 4,389,000,000 | $ 3,943,000,000 | |
Commissions paid included in cost basis of common stock repurchased | $ 1,100,000 | $ 1,000,000 | ||
Common shares remaining under share repurchase authorizations | 106,000,000 | |||
Shares held as treasury shares | 3,000,000 | 3,200,000 | 3,500,000 | |
Cost basis of treasury stock | $ 242,000,000 | $ 280,000,000 | $ 260,000,000 | |
Preferred shares, authorized | 20,000,000 | 20,000,000 | ||
Preferred shares, par value | $ 1.67 | $ 1.67 | ||
Preferred stock, shares issued | 1,600 | 750 | 0 | |
Preferred stock, shares outstanding | 1,600 | 750 | 0 | |
Depositary Shares, Redemption Amount | $ 1,000 | |||
Warrants, issued and outstanding | 0 | 0 | 0 | |
Liquidation price per share | $ 1,000,000 |
Changes in Accumulated Other120
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Other Comprehensive income | |||
Balances as of January 1 | $ (1,919,000,000) | ||
Net unrealized pension and other postretirement benefit gains, net of tax | (32,000,000) | $ (117,000,000) | $ 89,000,000 |
Balances as of December 31 | (2,534,000,000) | (1,919,000,000) | |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Investment securities | (20,000,000) | 19,000,000 | (142,000,000) |
Cash flow hedges | 0 | 0 | 0 |
Foreign currency translation adjustments | (124,000,000) | (64,000,000) | (49,000,000) |
Net investment hedges | 340,000,000 | 273,000,000 | 135,000,000 |
Pension and other postretirement benefit losses | 0 | (46,000,000) | 56,000,000 |
Total tax impact | 196,000,000 | 182,000,000 | 0 |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Changes in Other Comprehensive income | |||
Balances as of January 1 | (1,919,000,000) | (1,426,000,000) | (927,000,000) |
Net unrealized gains (losses) | (37,000,000) | 104,000,000 | (159,000,000) |
Reclassification for realized (gains) losses into earnings | (2,000,000) | (66,000,000) | (93,000,000) |
Net translation of investments in foreign operations | (1,122,000,000) | (869,000,000) | (589,000,000) |
Net gains (losses) related to hedges of investment in foreign operations | 578,000,000 | 455,000,000 | 253,000,000 |
Net unrealized pension and other postretirement benefit gains, net of tax | (32,000,000) | (117,000,000) | 89,000,000 |
Net change in accumulated other comprehensive (loss) income | (615,000,000) | (493,000,000) | (499,000,000) |
Balances as of December 31 | (2,534,000,000) | (1,919,000,000) | (1,426,000,000) |
Net Unrealized Investment Gains (Losses) on Investment Securities [Member] | |||
Changes in Other Comprehensive income | |||
Balances as of January 1 | 96,000,000 | 63,000,000 | 315,000,000 |
Net unrealized gains (losses) | (37,000,000) | 104,000,000 | (159,000,000) |
Reclassification for realized (gains) losses into earnings | (1,000,000) | (71,000,000) | (93,000,000) |
Net change in accumulated other comprehensive (loss) income | (38,000,000) | 33,000,000 | (252,000,000) |
Balances as of December 31 | 58,000,000 | 96,000,000 | 63,000,000 |
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member] | |||
Changes in Other Comprehensive income | |||
Balances as of January 1 | 0 | 0 | |
Net unrealized gains (losses) | 0 | ||
Reclassification for realized (gains) losses into earnings | 0 | ||
Net change in accumulated other comprehensive (loss) income | 0 | 0 | 0 |
Balances as of December 31 | 0 | 0 | 0 |
Foreign Currency Translation Adjustments [Member] | |||
Changes in Other Comprehensive income | |||
Balances as of January 1 | (1,499,000,000) | (1,090,000,000) | (754,000,000) |
Reclassification for realized (gains) losses into earnings | (1,000,000) | 5,000,000 | 0 |
Net translation of investments in foreign operations | (1,122,000,000) | (869,000,000) | (589,000,000) |
Net gains (losses) related to hedges of investment in foreign operations | 578,000,000 | 455,000,000 | 253,000,000 |
Net change in accumulated other comprehensive (loss) income | (545,000,000) | (409,000,000) | (336,000,000) |
Balances as of December 31 | (2,044,000,000) | (1,499,000,000) | (1,090,000,000) |
Net Unrealized Pension and Other Postretirement Benefit Losses [Member] | |||
Changes in Other Comprehensive income | |||
Balances as of January 1 | (516,000,000) | (399,000,000) | (488,000,000) |
Net unrealized pension and other postretirement benefit gains, net of tax | (32,000,000) | (117,000,000) | 89,000,000 |
Net change in accumulated other comprehensive (loss) income | (32,000,000) | (117,000,000) | 89,000,000 |
Balances as of December 31 | $ (548,000,000) | $ (516,000,000) | $ (399,000,000) |
Changes in Accumulated Other121
Changes in Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other non-interest revenue | $ 2,033 | $ 2,989 | $ 2,274 |
Interest Expense, Long-term Debt | 1,148 | 1,334 | 1,516 |
Other expense | (6,793) | (6,089) | $ (6,796) |
Net Unrealized Investment Gains (Losses) on Investment Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other non-interest revenue | 1 | 111 | |
Income tax provision for other non-interest revenue | 0 | (40) | |
Increase (decrease) due to amounts reclassified into earnings | 1 | 71 | |
Foreign Currency Translation Adjustments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense | 1 | (9) | |
Income tax benefit for other, net expense | 0 | 4 | |
Increase (decrease) due to amounts reclassified into earnings | 1 | (5) | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Increase (decrease) due to amounts reclassified into earnings | $ 2 | $ 66 |
Non-Interest Revenue and Exp122
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | |||
Foreign currency conversion fee revenue | $ 852 | $ 877 | $ 877 |
Delinquency fees | 788 | 722 | 667 |
Loyalty Partner-related fees | 379 | 383 | 310 |
Service fees | 361 | 366 | 375 |
Other | 137 | 160 | 185 |
Total Other commissions and fees | $ 2,517 | $ 2,508 | $ 2,414 |
Non-Interest Revenue and Exp123
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | |||
Gain on sale of investment in Concur Technologies | $ 0 | $ 744,000,000 | $ 0 |
Global Network Services partner revenues | 640,000,000 | 694,000,000 | 650,000,000 |
Net realized gains on investment securities | 1,000,000 | 100,000,000 | 136,000,000 |
Other | 1,392,000,000 | 1,451,000,000 | 1,488,000,000 |
Total Other revenues | 2,033,000,000 | 2,989,000,000 | 2,274,000,000 |
Gross realized losses on investment securities | $ 0 | $ 0 | $ 0 |
Non-Interest Revenue and Exp124
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | |||
Professional services | $ 2,750 | $ 3,008 | $ 3,102 |
Occupancy and equipment | 1,854 | 1,807 | 1,904 |
Goodwill and long-lived asset impairment | 384 | ||
Card-related fraud losses | 308 | 369 | 278 |
Communications | 345 | 383 | 379 |
Gain on business travel joint venture transaction | (630) | ||
Other | 1,152 | 1,152 | 1,133 |
Total Other, net | $ 6,793 | $ 6,089 | $ 6,796 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Type of Restructuring [Domain] | |||||
Restructuring Charges | |||||
Beginning Balance | $ 470 | $ 233 | $ 470 | ||
Restructuring charges, net of revisions | $ 313 | $ 133 | (26) | 411 | (4) |
Payments | (155) | (115) | (229) | ||
Other non-cash | (28) | (59) | (4) | ||
Ending Balance | 470 | 261 | 470 | 233 | |
Employee Severance [Member] | |||||
Restructuring Charges | |||||
Beginning Balance | 435 | 196 | 412 | ||
Restructuring charges, net of revisions | (33) | 383 | (7) | ||
Payments | (141) | (93) | (206) | ||
Other non-cash | (23) | (51) | (3) | ||
Ending Balance | 435 | 238 | 435 | 196 | |
Other Terminations [Member] | |||||
Restructuring Charges | |||||
Beginning Balance | 35 | 37 | 58 | ||
Restructuring charges, net of revisions | 7 | 28 | 3 | ||
Payments | (14) | (22) | (23) | ||
Other non-cash | (5) | (8) | (1) | ||
Ending Balance | $ 35 | $ 23 | 35 | $ 37 | |
GBT JV [Member] | |||||
Restructuring Charges | |||||
Other non-cash | (42) | ||||
Foreign exchange and other non-cash charges | |||||
Restructuring Charges | |||||
Other non-cash | $ (17) |
Restructuring Charges (Details
Restructuring Charges (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Type of Restructuring [Domain] | |||||
Restructuring charges, by reportable segment | |||||
Restructuring charges, net of revisions | $ (313) | $ (133) | $ 26 | $ (411) | $ 4 |
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 630 | ||||
Employee Severance [Member] | |||||
Restructuring charges, by reportable segment | |||||
Restructuring charges, net of revisions | 33 | (383) | 7 | ||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 557 | ||||
Other Terminations [Member] | |||||
Restructuring charges, by reportable segment | |||||
Restructuring charges, net of revisions | (7) | $ (28) | $ (3) | ||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 73 | ||||
U S Card Services [Member] | Type of Restructuring [Domain] | |||||
Restructuring charges, by reportable segment | |||||
Restructuring charges, net of revisions | (7) | ||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 35 | ||||
U S Card Services [Member] | Employee Severance [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 35 | ||||
U S Card Services [Member] | Other Terminations [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 0 | ||||
International Card Services [Member] | Type of Restructuring [Domain] | |||||
Restructuring charges, by reportable segment | |||||
Restructuring charges, net of revisions | (17) | ||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 198 | ||||
International Card Services [Member] | Employee Severance [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 198 | ||||
International Card Services [Member] | Other Terminations [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 0 | ||||
Global Commercial Services [Member] | Type of Restructuring [Domain] | |||||
Restructuring charges, by reportable segment | |||||
Restructuring charges, net of revisions | (16) | ||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 113 | ||||
Global Commercial Services [Member] | Employee Severance [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 113 | ||||
Global Commercial Services [Member] | Other Terminations [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 0 | ||||
Global Network And Merchant Services [Member] | Type of Restructuring [Domain] | |||||
Restructuring charges, by reportable segment | |||||
Restructuring charges, net of revisions | (1) | ||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 57 | ||||
Global Network And Merchant Services [Member] | Employee Severance [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 57 | ||||
Global Network And Merchant Services [Member] | Other Terminations [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 0 | ||||
Corporate and Other [Member] | Type of Restructuring [Domain] | |||||
Restructuring charges, by reportable segment | |||||
Restructuring charges, net of revisions | 15 | ||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 227 | ||||
Severance and other charges | 151 | ||||
Corporate and Other [Member] | Employee Severance [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | 154 | ||||
Corporate and Other [Member] | Other Terminations [Member] | |||||
Restructuring charges, by reportable segment | |||||
Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs | $ 73 |
Restructuring Charges (Detai127
Restructuring Charges (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Type of Restructuring [Domain] | ||||||
Restructuring Charges (Textuals) [Abstract] | ||||||
Restructuring charges, net of revisions | $ 313 | $ 133 | $ (26) | $ 411 | $ (4) | |
Restructuring charges, revision adjustments | 61 | 35 | 4 | |||
Downsizing and Reorganizing Operations [Member] | ||||||
Restructuring Charges (Textuals) [Abstract] | ||||||
Restructuring charges, net of revisions | $ 35 | 35 | ||||
Employee Severance [Member] | ||||||
Restructuring Charges (Textuals) [Abstract] | ||||||
Restructuring charges, net of revisions | $ (33) | $ 383 | $ (7) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current income tax expense: | |||
U.S. federal | $ 2,107 | $ 2,136 | $ 1,730 |
U.S. state and local | 335 | 264 | 288 |
Non-U.S. | 416 | 412 | 514 |
Total current income tax expense | 2,858 | 2,812 | 2,532 |
Deferred income tax expense (benefit): | |||
U.S. federal | (23) | 352 | 113 |
U.S. state and local | (5) | 39 | 4 |
Non-U.S. | (55) | (97) | (120) |
Total deferred income tax expense | (83) | 294 | (3) |
Income tax provision (benefit) | $ 2,775 | $ 3,106 | $ 2,529 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective tax rate reconciliation | |||
Combined tax at U.S. statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) in taxes resulting from: | |||
Tax-exempt income | (1.70%) | (1.50%) | (1.60%) |
State and local income taxes, net of federal benefit | 2.80% | 2.70% | 3.10% |
Non-U.S. subsidiaries earnings | (1.80%) | (2.20%) | (2.80%) |
Tax settlements | (0.20%) | (0.50%) | (1.90%) |
Non deductible expenses | 0.90% | 0.00% | 0.00% |
All other | 0.00% | 1.00% | 0.30% |
Actual tax rates | 35.00% | 34.50% | 32.10% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Reserves not yet deducted for tax purposes | $ 3,771 | $ 3,926 |
Employee compensation and benefits | 648 | 789 |
Other | 520 | 266 |
Gross deferred tax assets | 4,939 | 4,981 |
Valuation allowance | (58) | (75) |
Deferred tax assets after valuation allowance | 4,881 | 4,906 |
Deferred tax liabilities: | ||
Intangibles and fixed assets | 1,547 | 1,597 |
Deferred revenue | 509 | 498 |
Deferred interest | 323 | 350 |
Asset Securitization | 0 | 162 |
Investment in joint ventures | 231 | 223 |
Foreign deferred tax liabilities | 120 | 62 |
Gross deferred tax liabilities | 2,730 | 2,892 |
Net deferred tax assets | $ 2,151 | $ 2,014 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 909 | $ 1,044 | $ 1,230 |
Increases: | |||
Current year tax positions | 81 | 4 | 124 |
Tax positions related to prior years | 177 | 111 | 176 |
Decreases: | |||
Tax positions related to prior years | (256) | (181) | (371) |
Settlements with tax authorities | (15) | (67) | (94) |
Lapse of statute of limitations | (26) | (1) | (21) |
Effects of foreign currency translations | 0 | (1) | 0 |
Balance, December 31 | $ 870 | $ 909 | $ 1,044 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes (Textuals) | ||||
U.S. statutory federal income tax rate | 35.00% | 35.00% | 35.00% | |
Aggregate of federal taxes | $ 3,000 | |||
Income taxes paid | 3,400 | $ 2,500 | $ 2,000 | |
Unrecognized tax benefits | 870 | 909 | 1,044 | $ 1,230 |
Unrecognized tax benefits as a result of potential resolutions of prior years' tax | 231 | |||
Unrecognized tax benefits that affect effective tax rate | 502 | 412 | 427 | |
Unrecognized tax benefits, amounts recorded to equity | 21 | |||
Unrecognized tax benefits impact not possible to quantify | 0 | |||
Unrecognized tax benefits income tax penalties and interest expense | (38) | 19 | $ 31 | |
Unrecognized tax benefits income tax penalties and interest accrued | 164 | $ 126 | ||
Income Taxes Of Non Us Subsidiaries [Line Items] | ||||
Accumulated earnings intended to be permanently reinvested outside the U.S. | $ 9,900 | |||
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 (E133
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Basic and diluted: | ||||||||||||
Net Income from continuing operations | $ 5,163,000,000 | $ 5,885,000,000 | $ 5,359,000,000 | |||||||||
Dividends Preferred Stock | $ (20,000,000) | $ (22,000,000) | $ (20,000,000) | $ 0 | (62,000,000) | 0 | 0 | |||||
Net income available to common shareholders | 5,101,000,000 | 5,885,000,000 | 5,359,000,000 | |||||||||
Earnings allocated to participating share awards | $ (6,000,000) | $ (10,000,000) | $ (11,000,000) | $ (11,000,000) | $ (11,000,000) | $ (11,000,000) | $ (12,000,000) | $ (12,000,000) | (38,000,000) | (46,000,000) | (47,000,000) | |
Net income attributable to common shareholders | $ 5,063,000,000 | $ 5,839,000,000 | $ 5,312,000,000 | |||||||||
Denominator: | ||||||||||||
Basic: Weighted-average common stock | 999 | 1,045 | 1,082 | |||||||||
Add: Weighted-average stock options | 4 | 6 | 7 | |||||||||
Diluted | 1,003 | 1,051 | 1,089 | |||||||||
Basic EPS: | ||||||||||||
Basic | [1] | $ 5.07 | $ 5.58 | $ 4.91 | ||||||||
Net income attributable to common shareholders | $ 0.89 | $ 1.24 | $ 1.43 | $ 1.49 | $ 1.4 | $ 1.41 | $ 1.44 | $ 1.34 | ||||
Diluted EPS: | ||||||||||||
Diluted | $ 5.05 | $ 5.56 | $ 4.88 | |||||||||
Net income attributable to common shareholders | $ 0.89 | $ 1.24 | $ 1.42 | $ 1.48 | $ 1.39 | $ 1.4 | $ 1.43 | $ 1.33 | ||||
Earnings Per Common Share (Textuals) [Abstract] | ||||||||||||
Subordinated debentures | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||||||
Stock Option [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per Share, amount | 0.5 | 0.2 | 0.1 | |||||||||
[1] | Represents net income less ( i ) earnings allocated to participating share awards of $ 38 million, $ 46 million and $ 47 million for the years ended December 31, 2015 , 2014 and 2013 , respectively , and (ii) dividends on preferred shares of $ 62 million for the year ended December 31, 2015 , and nil f or the years ended December 31, 2014 and 2013 . |
Regulatory Matters and Capit134
Regulatory Matters and Capital Adequacy (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Regulatory Matters And Capital Adequacy [Abstract] | ||
Well-capitalized ratios | 10.00% | |
Minimum capital ratios | 8.00% | |
Leverage capital required, Well-capitalized ratios | 5.00% | |
Leverage capital required, Minimum capital ratios | 4.00% | |
Risk-based capital required, Well-capitalized ratios | 8.00% | |
Risk-based capital required, Minimum capital ratios | 6.00% | |
Common Equity Tier 1 required, Minimum capital ratio | 4.50% | |
Common Equity Tier 1 required, Well-capitalized ratios | 6.50% | |
Parent Company [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 18,265 | $ 18,176 |
Total capital | $ 20,551 | $ 20,801 |
Tier 1 capital ratio | 13.51% | 13.60% |
Total capital ratio | 15.20% | 15.60% |
Tier 1 leverage ratio | 11.68% | 11.80% |
CET1 capital | $ 16,747 | $ 17,525 |
CET1 capital ratio | 12.40% | 13.10% |
American Express Centurion Bank [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 6,013 | $ 6,174 |
Total capital | $ 6,460 | $ 6,584 |
Tier 1 capital ratio | 16.90% | 18.80% |
Total capital ratio | 18.20% | 20.10% |
Tier 1 leverage ratio | 17.70% | 18.70% |
CET1 capital | $ 6,013 | $ 6,174 |
CET1 capital ratio | 16.90% | 18.80% |
American Express Bank, FSB [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 6,927 | $ 6,722 |
Total capital | $ 7,601 | $ 7,604 |
Tier 1 capital ratio | 13.70% | 14.20% |
Total capital ratio | 15.10% | 16.00% |
Tier 1 leverage ratio | 13.20% | 15.10% |
CET1 capital | $ 6,927 | $ 6,722 |
CET1 capital ratio | 13.70% | 14.20% |
Regulatory Matters and Capit135
Regulatory Matters and Capital Adequacy (Details Textuals) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Regulatory Matters And Capital Adequacy [Abstract] | ||
Restricted net assets of subsidiaries | $ 11.3 | |
Retained Earnings Available For Payment Of Dividends | 3.2 | $ 3.6 |
American Express Centurion Bank [Member] | ||
Regulatory Matters And Capital Adequacy [Abstract] | ||
Dividends paid from retained earnings to its parent company | 2 | 1.9 |
American Express Bank, FSB [Member] | ||
Regulatory Matters And Capital Adequacy [Abstract] | ||
Dividends paid from retained earnings to its parent company | $ 2.2 | $ 2.1 |
Significant Credit Concentra136
Significant Credit Concentrations (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 150 | $ 147 |
Individuals [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 104 | 101 |
Unused lines-of-credit | 297 | 278 |
Financial Institutions [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 25 | 25 |
United States Government And Agencies [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 4 | 4 |
Other Concentration [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 17 | $ 17 |
Significant Credit Concentra137
Significant Credit Concentrations (Details 1) - USD ($) $ in Billions | Dec. 31, 2015 | Dec. 31, 2014 |
Card Member loans and receivables exposure | ||
On-balance sheet | $ 118 | $ 115 |
Individuals [Member] | ||
Card Member loans and receivables exposure | ||
Unused lines-of-credit | 297 | 278 |
U.S. [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 99 | 94 |
U.S. [Member] | Individuals [Member] | ||
Card Member loans and receivables exposure | ||
Unused lines-of-credit | 259 | 234 |
Non-U.S. [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 19 | 21 |
Non-U.S. [Member] | Individuals [Member] | ||
Card Member loans and receivables exposure | ||
Unused lines-of-credit | $ 38 | $ 44 |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ||||||||||||
Non-interest revenues | $ 26,896 | $ 28,716 | $ 27,823 | |||||||||
Interest income | 7,545 | 7,179 | 7,005 | |||||||||
Interest expense | 1,623 | 1,707 | 1,958 | |||||||||
Total revenues, net of interest expense | $ 8,391 | $ 8,193 | $ 8,284 | $ 7,950 | $ 9,081 | $ 8,303 | $ 8,631 | $ 8,173 | 32,818 | 34,188 | 32,870 | |
Total provision | 1,988 | 2,044 | 1,832 | |||||||||
Pretax income | 1,454 | $ 1,938 | $ 2,230 | $ 2,316 | 2,225 | $ 2,246 | $ 2,312 | $ 2,208 | 7,938 | 8,991 | 7,888 | |
Income tax provision (benefit) | 2,775 | 3,106 | 2,529 | |||||||||
Net Income from continuing operations | 5,163 | 5,885 | 5,359 | |||||||||
Total assets | 161,184 | 159,103 | 161,184 | 159,103 | 153,000 | |||||||
Total shareholders' equity | 20,673 | 20,673 | 20,673 | 20,673 | 19,496 | $ 18,886 | ||||||
U S Card Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Non-interest revenues | 13,180 | 12,628 | 12,019 | |||||||||
Interest income | 6,267 | 5,786 | 5,565 | |||||||||
Interest expense | 654 | 604 | 693 | |||||||||
Total revenues, net of interest expense | 18,793 | 17,810 | 16,891 | |||||||||
Total provision | 1,453 | 1,396 | 1,250 | |||||||||
Pretax income | 5,355 | 5,100 | 4,994 | |||||||||
Income tax provision (benefit) | 1,942 | 1,900 | 1,801 | |||||||||
Net Income from continuing operations | 3,413 | 3,200 | 3,193 | |||||||||
Total assets | 117,300 | 113,200 | 117,300 | 113,200 | 104,000 | |||||||
Total shareholders' equity | 10,300 | 10,400 | 10,300 | 10,400 | 9,300 | |||||||
International Card Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Non-interest revenues | 4,321 | 4,737 | 4,644 | |||||||||
Interest income | 939 | 1,085 | 1,118 | |||||||||
Interest expense | 242 | 330 | 361 | |||||||||
Total revenues, net of interest expense | 5,018 | 5,492 | 5,401 | |||||||||
Total provision | 329 | 370 | 388 | |||||||||
Pretax income | 508 | 449 | 643 | |||||||||
Income tax provision (benefit) | 87 | 38 | 12 | |||||||||
Net Income from continuing operations | 421 | 411 | 631 | |||||||||
Total assets | 35,400 | 30,700 | 35,400 | 30,700 | 31,000 | |||||||
Total shareholders' equity | 2,900 | 3,000 | 2,900 | 3,000 | 3,100 | |||||||
Global Commercial Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Non-interest revenues | 3,513 | 5,173 | 5,085 | |||||||||
Interest income | 14 | 15 | 13 | |||||||||
Interest expense | 185 | 240 | 245 | |||||||||
Total revenues, net of interest expense | 3,342 | 4,948 | 4,853 | |||||||||
Total provision | 148 | 180 | 129 | |||||||||
Pretax income | 1,073 | 2,408 | 1,244 | |||||||||
Income tax provision (benefit) | 407 | 865 | 384 | |||||||||
Net Income from continuing operations | 666 | 1,543 | 860 | |||||||||
Total assets | 17,700 | 18,500 | 17,700 | 18,500 | 19,000 | |||||||
Total shareholders' equity | 3,700 | 3,800 | 3,700 | 3,800 | 3,700 | |||||||
Global Network And Merchant Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Non-interest revenues | 5,236 | 5,426 | 5,229 | |||||||||
Interest income | 98 | 52 | 32 | |||||||||
Interest expense | (194) | (269) | (252) | |||||||||
Total revenues, net of interest expense | 5,528 | 5,747 | 5,513 | |||||||||
Total provision | 54 | 93 | 67 | |||||||||
Pretax income | 2,775 | 2,620 | 2,469 | |||||||||
Income tax provision (benefit) | 1,004 | 960 | 894 | |||||||||
Net Income from continuing operations | 1,771 | 1,660 | 1,575 | |||||||||
Total assets | 23,600 | 18,100 | 23,600 | 18,100 | 17,000 | |||||||
Total shareholders' equity | 2,400 | 2,000 | 2,400 | 2,000 | 2,000 | |||||||
Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Non-interest revenues | 646 | 752 | 846 | |||||||||
Interest income | 227 | 241 | 277 | |||||||||
Interest expense | 736 | 802 | 911 | |||||||||
Total revenues, net of interest expense | 137 | 191 | 212 | |||||||||
Total provision | 4 | 5 | (2) | |||||||||
Pretax income | (1,773) | (1,586) | (1,462) | |||||||||
Income tax provision (benefit) | (665) | (657) | (562) | |||||||||
Net Income from continuing operations | (1,108) | (929) | (900) | |||||||||
Total assets | (33,000) | (22,000) | (33,000) | (22,000) | (18,000) | |||||||
Total shareholders' equity | $ 1,400 | $ 1,500 | $ 1,400 | $ 1,500 | $ 1,400 |
Reportable Operating Segements
Reportable Operating Segements and Geographic Operations (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | $ 8,391 | $ 8,193 | $ 8,284 | $ 7,950 | $ 9,081 | $ 8,303 | $ 8,631 | $ 8,173 | $ 32,818 | $ 34,188 | $ 32,870 |
Pretax income | $ 1,454 | $ 1,938 | $ 2,230 | $ 2,316 | $ 2,225 | $ 2,246 | $ 2,312 | $ 2,208 | 7,938 | 8,991 | 7,888 |
United States Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 24,791 | 24,751 | 23,641 | ||||||||
Pretax income | 8,010 | 8,869 | 7,679 | ||||||||
EMEA Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 3,161 | 3,767 | 3,700 | ||||||||
Pretax income | 534 | 525 | 524 | ||||||||
JAPA Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 2,649 | 2,934 | 2,952 | ||||||||
Pretax income | 456 | 463 | 488 | ||||||||
LACC Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 2,384 | 2,888 | 2,900 | ||||||||
Pretax income | 658 | 683 | 701 | ||||||||
Other Unallocated [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | (167) | (152) | (323) | ||||||||
Pretax income | $ (1,720) | $ (1,549) | $ (1,504) |
Parent Company (Details)
Parent Company (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Non-interest revenues | |||||||||||
Gain on sale of securities | $ 1 | $ 100 | $ 136 | ||||||||
Other | 2,033 | 2,989 | 2,274 | ||||||||
Total non-interest revenues | 26,896 | 28,716 | 27,823 | ||||||||
Interest income | 7,545 | 7,179 | 7,005 | ||||||||
Interest expense | (1,623) | (1,707) | (1,958) | ||||||||
Total revenues net of interest expense | $ 8,391 | $ 8,193 | $ 8,284 | $ 7,950 | $ 9,081 | $ 8,303 | $ 8,631 | $ 8,173 | 32,818 | 34,188 | 32,870 |
Expenses | |||||||||||
Salaries and employee benefits | 4,976 | 6,095 | 6,191 | ||||||||
Other | 6,793 | 6,089 | 6,796 | ||||||||
Total | 22,892 | 23,153 | 23,150 | ||||||||
Pretax loss | 1,454 | 1,938 | 2,230 | 2,316 | 2,225 | 2,246 | 2,312 | 2,208 | 7,938 | 8,991 | 7,888 |
Income tax provision (benefit) | 2,775 | 3,106 | 2,529 | ||||||||
Net income | $ 899 | $ 1,266 | $ 1,473 | $ 1,525 | $ 1,447 | $ 1,477 | $ 1,529 | $ 1,432 | 5,163 | 5,885 | 5,359 |
Parent Company [Member] | |||||||||||
Non-interest revenues | |||||||||||
Gain on sale of securities | 0 | 99 | 135 | ||||||||
Other | 400 | 270 | 5 | ||||||||
Total non-interest revenues | 400 | 369 | 140 | ||||||||
Interest income | 172 | 141 | 134 | ||||||||
Interest expense | (526) | (543) | (583) | ||||||||
Total revenues net of interest expense | 46 | (33) | (309) | ||||||||
Expenses | |||||||||||
Salaries and employee benefits | 341 | 275 | 206 | ||||||||
Other | 443 | 357 | 261 | ||||||||
Total | 784 | 632 | 467 | ||||||||
Pretax loss | (738) | (665) | (776) | ||||||||
Income tax provision (benefit) | (268) | (249) | (297) | ||||||||
Net loss before equity in net income of subsidiaries and affiliates | (470) | (416) | (479) | ||||||||
Equity in net income of subsidiaries and affiliates | 5,633 | 6,301 | 5,838 | ||||||||
Net income | $ 5,163 | $ 5,885 | $ 5,359 |
Parent Company (Details 1)
Parent Company (Details 1) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and cash equivalents | $ 22,762,000,000 | $ 22,288,000,000 | $ 19,486,000,000 | $ 22,250,000,000 |
Investment securities | 3,759,000,000 | 4,431,000,000 | 0 | |
Accounts receivable, less reserves | 43,671,000,000 | 44,386,000,000 | ||
Premises and equipment, less accumulated depreciation | 4,108,000,000 | 3,938,000,000 | ||
Other assets | 10,069,000,000 | 11,342,000,000 | ||
Total assets | 161,184,000,000 | 159,103,000,000 | 153,000,000,000 | |
Liabilities and Shareholders' Equity | ||||
Long-term debt | 48,061,000,000 | 57,955,000,000 | ||
Total liabilities | 140,511,000,000 | 138,430,000,000 | ||
Shareholders' Equity | ||||
Preferred shares | 0 | 0 | ||
Common shares | 194,000,000 | 205,000,000 | ||
Additional paid-in capital | 13,348,000,000 | 12,874,000,000 | ||
Retained earnings | 9,665,000,000 | 9,513,000,000 | ||
Accumulated other comprehensive loss | (2,534,000,000) | (1,919,000,000) | ||
Total shareholders' equity | 20,673,000,000 | 20,673,000,000 | 19,496,000,000 | 18,886,000,000 |
Total liabilities and shareholders' equity | 161,184,000,000 | 159,103,000,000 | ||
Parent Company Details (Textuals) [Abstract] | ||||
Premises and equipment, accumulated depreciation | 6,801,000,000 | 6,270,000,000 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 6,400,000,000 | 8,824,000,000 | $ 6,076,000,000 | $ 4,797,000,000 |
Investment securities | 1,000,000 | 1,000,000 | ||
Equity in net assets of subsidiaries and affiliates | 19,856,000,000 | 20,123,000,000 | ||
Accounts receivable, less reserves | 311,000,000 | 134,000,000 | ||
Premises and equipment, less accumulated depreciation | 133,000,000 | 139,000,000 | ||
Loans to subsidiaries and affiliates | 11,762,000,000 | 7,809,000,000 | ||
Due from subsidiaries and affiliates | 896,000,000 | 1,477,000,000 | ||
Other assets | 275,000,000 | 365,000,000 | ||
Total assets | 39,634,000,000 | 38,872,000,000 | ||
Liabilities and Shareholders' Equity | ||||
Accounts payable and other liabilities | 1,603,000,000 | 1,590,000,000 | ||
Due to subsidiaries and affiliates | 716,000,000 | 964,000,000 | ||
Short-term debt of subsidiaries and affiliates | 6,923,000,000 | 5,937,000,000 | ||
Long-term debt | 9,719,000,000 | 9,708,000,000 | ||
Total liabilities | 18,961,000,000 | 18,199,000,000 | ||
Shareholders' Equity | ||||
Preferred shares | 0 | 0 | ||
Common shares | 194,000,000 | 205,000,000 | ||
Additional paid-in capital | 13,348,000,000 | 12,874,000,000 | ||
Retained earnings | 9,665,000,000 | 9,513,000,000 | ||
Accumulated other comprehensive loss | (2,534,000,000) | (1,919,000,000) | ||
Total shareholders' equity | 20,673,000,000 | 20,673,000,000 | ||
Total liabilities and shareholders' equity | 39,634,000,000 | 38,872,000,000 | ||
Parent Company Details (Textuals) [Abstract] | ||||
Premises and equipment, accumulated depreciation | $ 140,000,000 | $ 106,000,000 |
Parent Company (Details 2)
Parent Company (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 899,000,000 | $ 1,266,000,000 | $ 1,473,000,000 | $ 1,525,000,000 | $ 1,447,000,000 | $ 1,477,000,000 | $ 1,529,000,000 | $ 1,432,000,000 | $ 5,163,000,000 | $ 5,885,000,000 | $ 5,359,000,000 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||||||
Gain on sale of securities | (1,000,000) | (100,000,000) | (136,000,000) | ||||||||
Premium paid on debt exchange | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 10,972,000,000 | 10,990,000,000 | 8,547,000,000 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchase of investments | (1,713,000,000) | (886,000,000) | (1,348,000,000) | ||||||||
Purchase of premises and equipment | (1,341,000,000) | (1,195,000,000) | (1,006,000,000) | ||||||||
Net cash used in investing activities | (8,193,000,000) | (7,967,000,000) | (7,269,000,000) | ||||||||
Cash Flows from Financing Activities | |||||||||||
(Principal payments on) / issuance of long term debt | (19,610,000,000) | (12,768,000,000) | (14,763,000,000) | ||||||||
Issuance of American Express preferred shares | 841,000,000 | 742,000,000 | 0 | ||||||||
Issuance of American Express common shares and other | 193,000,000 | 362,000,000 | 721,000,000 | ||||||||
Repurchase of American Express common shares | (4,480,000,000) | (4,389,000,000) | (3,943,000,000) | ||||||||
Dividends paid | (1,172,000,000) | (1,041,000,000) | (939,000,000) | ||||||||
Net cash provided by (used in) financing activities | (2,029,000,000) | 11,000,000 | (3,891,000,000) | ||||||||
Net increase (decrease) in cash and cash equivalents | 474,000,000 | 2,802,000,000 | (2,764,000,000) | ||||||||
Cash and cash equivalents at beginning of year | 22,288,000,000 | 19,486,000,000 | 22,288,000,000 | 19,486,000,000 | 22,250,000,000 | ||||||
Cash and cash equivalents at end of year | 22,762,000,000 | 22,288,000,000 | 22,762,000,000 | 22,288,000,000 | 19,486,000,000 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 5,163,000,000 | 5,885,000,000 | 5,359,000,000 | ||||||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||||||
Equity in net income of subsidiaries and affiliates | (5,633,000,000) | (6,301,000,000) | (5,838,000,000) | ||||||||
Dividends received from subsidiaries and affiliates | 5,331,000,000 | 5,455,000,000 | 4,768,000,000 | ||||||||
Gain on sale of securities | 0 | (99,000,000) | (135,000,000) | ||||||||
Other operating activities, primarily with subsidiaries and affiliates | 332,000,000 | 173,000,000 | 324,000,000 | ||||||||
Premium paid on debt exchange | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 5,193,000,000 | 5,113,000,000 | 4,478,000,000 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Sales of available-for-sale investment securities | 0 | 111,000,000 | 157,000,000 | ||||||||
Purchase of investments | (3,000,000) | 0 | 0 | ||||||||
Purchase of premises and equipment | (29,000,000) | (39,000,000) | (39,000,000) | ||||||||
Loans to subsidiaries and affiliates | (3,952,000,000) | (2,574,000,000) | 1,498,000,000 | ||||||||
Investments in subsidiaries and affiliates | 0 | 0 | 0 | ||||||||
Net cash used in investing activities | (3,984,000,000) | (2,502,000,000) | 1,616,000,000 | ||||||||
Cash Flows from Financing Activities | |||||||||||
(Principal payments on) / issuance of long term debt | 0 | (655,000,000) | 843,000,000 | ||||||||
Short-term debt of subsidiaries and affiliates | 986,000,000 | 5,118,000,000 | (1,497,000,000) | ||||||||
Issuance of American Express preferred shares | 841,000,000 | 742,000,000 | 0 | ||||||||
Issuance of American Express common shares and other | 192,000,000 | 362,000,000 | 721,000,000 | ||||||||
Repurchase of American Express common shares | (4,480,000,000) | (4,389,000,000) | (3,943,000,000) | ||||||||
Dividends paid | (1,172,000,000) | (1,041,000,000) | (939,000,000) | ||||||||
Net cash provided by (used in) financing activities | (3,633,000,000) | 137,000,000 | (4,815,000,000) | ||||||||
Net increase (decrease) in cash and cash equivalents | (2,424,000,000) | 2,748,000,000 | 1,279,000,000 | ||||||||
Cash and cash equivalents at beginning of year | $ 8,824,000,000 | $ 6,076,000,000 | 8,824,000,000 | 6,076,000,000 | 4,797,000,000 | ||||||
Cash and cash equivalents at end of year | $ 6,400,000,000 | $ 8,824,000,000 | $ 6,400,000,000 | $ 8,824,000,000 | $ 6,076,000,000 |
Parent Company (Details Textual
Parent Company (Details Textuals) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Parent Company Details (Textuals) [Abstract] | |
Gain on business travel joint venture transaction | $ 630 |
Quarterly Financial Data (Un144
Quarterly Financial Data (Unaudited) (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | ||
Disclosure of quarterly financial data | ||||||||||||
Total revenues net of interest expense | $ | $ 8,391,000,000 | $ 8,193,000,000 | $ 8,284,000,000 | $ 7,950,000,000 | $ 9,081,000,000 | $ 8,303,000,000 | $ 8,631,000,000 | $ 8,173,000,000 | $ 32,818,000,000 | $ 34,188,000,000 | $ 32,870,000,000 | |
Pretax income | $ | 1,454,000,000 | 1,938,000,000 | 2,230,000,000 | 2,316,000,000 | 2,225,000,000 | 2,246,000,000 | 2,312,000,000 | 2,208,000,000 | 7,938,000,000 | 8,991,000,000 | 7,888,000,000 | |
Net income | $ | $ 899,000,000 | $ 1,266,000,000 | $ 1,473,000,000 | $ 1,525,000,000 | $ 1,447,000,000 | $ 1,477,000,000 | $ 1,529,000,000 | $ 1,432,000,000 | $ 5,163,000,000 | $ 5,885,000,000 | $ 5,359,000,000 | |
Earnings per Common Share | ||||||||||||
Basic | $ / shares | [1] | $ 5.07 | $ 5.58 | $ 4.91 | ||||||||
Net income attributable to common shareholders | $ / shares | $ 0.89 | $ 1.24 | $ 1.43 | $ 1.49 | $ 1.4 | $ 1.41 | $ 1.44 | $ 1.34 | ||||
Earnings per Common Share | ||||||||||||
Diluted | $ / shares | 5.05 | 5.56 | 4.88 | |||||||||
Net income attributable to common shareholders | $ / shares | 0.89 | 1.24 | 1.42 | 1.48 | 1.39 | 1.4 | 1.43 | 1.33 | ||||
Cash dividends declared per common share | $ / shares | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.23 | $ 1.13 | $ 1.01 | $ 0.89 | |
Common share price: | ||||||||||||
High | $ | 77.85 | 81.66 | 81.92 | 93.94 | 94.89 | 96.24 | 96.04 | 94.35 | ||||
Low | $ | 67.57 | 71.71 | 76.53 | 77.12 | 78.41 | 85.75 | 83.99 | 82.63 | ||||
[1] | Represents net income less ( i ) earnings allocated to participating share awards of $ 38 million, $ 46 million and $ 47 million for the years ended December 31, 2015 , 2014 and 2013 , respectively , and (ii) dividends on preferred shares of $ 62 million for the year ended December 31, 2015 , and nil f or the years ended December 31, 2014 and 2013 . |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data (Textuals) [Abstract] | ||||||||||||
Earnings allocated to participating share awards | $ 6,000,000 | $ 10,000,000 | $ 11,000,000 | $ 11,000,000 | $ 11,000,000 | $ 11,000,000 | $ 12,000,000 | $ 12,000,000 | $ 38,000,000 | $ 46,000,000 | $ 47,000,000 | |
Dividends Preferred Stock | $ 20,000,000 | $ 22,000,000 | $ 20,000,000 | $ 0 | $ 62,000,000 | $ 0 | $ 0 | |||||
Periods in the prior year [Member] | ||||||||||||
Card Member reimbursements | $ 0 | |||||||||||
Periods prior to the prior year [Member] | ||||||||||||
Card Member reimbursements | $ 0 |