Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN EXPRESS CREDIT CORPORATION | |
Entity Central Index Key | 4,969 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,504,938 |
Consolidated Statements of Inco
Consolidated Statements of Income and Retained Earnings - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Discount revenue earned from purchased Card Member receivables and loans | $ 126 | $ 116 | $ 359 | $ 386 |
Interest income from affiliates and other | 53 | 105 | 194 | 297 |
Finance revenue | 8 | 11 | 22 | 36 |
Total revenues | 187 | 232 | 575 | 719 |
Expenses | ||||
Provisions for losses | 46 | 42 | 120 | 151 |
Interest expense | 83 | 131 | 283 | 390 |
Interest expense to affiliates | 3 | 2 | 7 | 5 |
Other, net | 10 | (29) | (19) | (76) |
Total expenses | 142 | 146 | 391 | 470 |
Pretax income | 45 | 86 | 184 | 249 |
Income tax provision (benefit) | 6 | (1) | 28 | (15) |
Net income | 39 | 87 | 156 | 264 |
Retained earnings at beginning of period | 3,072 | 3,025 | 3,015 | 3,004 |
Dividends | (16) | (99) | (76) | (255) |
Retained earnings at end of period | $ 3,095 | $ 3,013 | $ 3,095 | $ 3,013 |
Statement of Comprehensive Inco
Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Income and Comprehensive Income [Abstract] | ||||
Net income | $ 39 | $ 87 | $ 156 | $ 264 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments, net of tax | (188) | (129) | (342) | (110) |
Other comprehensive loss | (188) | (129) | (342) | (110) |
Comprehensive (loss) income | $ (149) | $ (42) | $ (186) | $ 154 |
Statement of Comprehensive Inc4
Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Foreign currency translation adjustment | $ 112 | $ 69 | $ 163 | $ (6) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 135 | $ 74 |
Card Member receivables, less reserves | 18,222 | 14,413 |
Card Member loans, less reserves | 387 | 398 |
Loans to affiliates and other | 9,818 | 15,303 |
Due from affiliates | 1,009 | 2,206 |
Other assets | 417 | 446 |
Total assets | 29,988 | 32,840 |
Liabilities | ||
Short-term debt | 375 | 769 |
Short-term debt to affiliates | 5,033 | 4,334 |
Long-term debt | 21,296 | 24,282 |
Total debt | 26,704 | 29,385 |
Due to affiliates | 1,044 | 888 |
Accrued interest and other liabilities | 113 | 178 |
Total liabilities | 27,861 | 30,451 |
Shareholder's Equity | ||
Common stock, $.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares | 0 | 0 |
Additional paid-in-capital | 161 | 161 |
Retained earnings | 3,095 | 3,015 |
Accumulated other comprehensive loss: | ||
Foreign currency translation adjustments, net of tax | (1,129) | (787) |
Total accumulated other comprehensive loss | (1,129) | (787) |
Total shareholder's equity | 2,127 | 2,389 |
Total liabilities and shareholder's equity | $ 29,988 | $ 32,840 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Card Member receivables, reserves | $ 109 | $ 94 |
Card Member loans, reserves | $ 4 | $ 3 |
Shareholder's Equity | ||
Common stock, par value | $ 0.1 | $ 0.1 |
Common stock, authorized | 3 | 3 |
Common stock, issued | 1.5 | 1.5 |
Common stock, outstanding | 1.5 | 1.5 |
Accumulated other comprehensive loss: | ||
Foreign currency translation adjustments, tax | $ 255 | $ 92 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net income | $ 156 | $ 264 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provisions for losses | 120 | 151 |
Amortization of underwriting expense | 24 | 18 |
Deferred taxes | 8 | 2 |
Changes in operating assets and liabilities: | ||
Interest, taxes and other amounts due to/from affiliates | (123) | 124 |
Other operating assets and liabilities | 413 | (551) |
Net cash provided by operating activities | 598 | 8 |
Cash Flows from Investing Activities | ||
Net increase in Card Member receivables and loans | (4,230) | (2,699) |
Net decrease (increase) in loans to affiliates and other | 4,722 | (3,956) |
Net decrease in due from affiliates | 1,360 | 917 |
Net cash provided by (used in) investing activities | 1,852 | (5,738) |
Cash Flows from Financing Activities | ||
Net decrease in short-term debt | (394) | (200) |
Net increase in short-term debt to affiliates | 702 | 1,076 |
Issuance of long-term debt | 5,527 | 7,509 |
Principal payments on long-term debt | (8,145) | (2,402) |
Dividends paid | (76) | (255) |
Net cash (used in) provided by financing activities | (2,386) | 5,728 |
Effect of foreign currency exchange rates on cash and cash equivalents | (3) | (4) |
Net increase (decrease) in cash and cash equivalents | 61 | (6) |
Cash and cash equivalents at beginning of period | 74 | 86 |
Cash and cash equivalents at end of period | $ 135 | $ 80 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation | 1 . Basis of Presentation The Company American Express Credit Corporation ( Credco ), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a wholly owned subsidiary of American Express Company (American Express). American Express charge cards and American Express credit cards are collectively referred to herein as the card s . Credco is engaged in the business of financing non-interest-earning Card Member receivables ari sing from the use of the American Express ® Green Card, the American Express ® Gold Card, Platinum Card ® , Corporate Card and other America n Express cards issued in the United States and in certain countries outside the United S tates . Credco also finances cer tain interest-earning revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest-earning revolving loans are primarily funded by subsidiaries of TRS other than Credco . Credco executes m aterial transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis; however, there can be no assurance that the terms of these ar rangements are the same as would be negotiated between independent, unrelated parties. American Express provides Credco with financial support with respect to maintenance of its minimum overall 1.25 fixed charge coverage ratio, which is achieved by chargin g appropriate discount rates on the purchases of Card Member receivables and loans Credco makes from, and the interest rates on the loans Credco provides to, TRS and other American Express subsidiaries. Each monthly period, the discount and interest rates are determined to generate income for Credco that is sufficient to maintain its minimum fixed charge coverage ratio. The revenue earned by Credco from purchasing Card Member receivables and loans at a discount is reported as discount revenue on the Consolidated Statements of Inc ome and Retained Earnings . The accompanying Consolidated Financial Statements should be read in conjunction with the conso lidated financial statements in Credco’s Annual Report on Form 10-K for the year ended December 31, 2014 (Form 10-K). If not materia lly different, certain footnote disclosur es included in the Form 10-K have been omitted from this Quarterly Report on For m 10-Q. The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated finan cial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. The preparation of consolidated financial statements in conformity with accounting principles generally acce pted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue s and expense s . These accounting estimates reflect the best judgment of management, but actual results could differ. Certain reclassifications of prior period amounts have been made to conform to the current period presentation. These reclassifications did not have a material impact on Credco’s financial position, resul ts of operations or cash flow s. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition. The guidance establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertaint y 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, 20 17, permitted. Credco 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. |
Card Member Receivables and Loa
Card Member Receivables and Loans | 9 Months Ended |
Sep. 30, 2015 | |
Card Member Receivables and Loans [Abstract] | |
Card Member Receivables and Loans | 2 . Card Member Receivables and Loans American Express’ charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively. The net v olume of Card Member receivables purchased duri ng the nine months ended September 30 , 2015 and 2014 was approximately $ 167 billion and $ 164 billio n, respectively. As of September 30 , 2015 and December 31, 2014 , Credco Receivables Corporation (CRC) owned approximately $ 4.5 billion and $ 2.8 billion, respectively, of participation interests in Card Member receivables purchased without recourse from Receivables Financing Corpor ation VIII LLC (RFC VIII). Card Member receivables as of September 30 , 2015 and December 31, 2014 consisted of: (Millions) 2015 2014 U.S. Card Services $ 4,532 $ 2,755 International Card Services (a)(b) 1,984 1,316 Global Commercial Services (b) 11,815 10,436 Card Member receivables (c) 18,331 14,507 Less: Reserve for losses 109 94 Card Member receivables, net (d) $ 18,222 $ 14,413 International is comprised of consumer and small business services. In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves with a corresponding decline in loans to affiliates. Net of deferr ed discount revenue totaling $ 22 million and $ 16 million as of September 30 , 2015 and December 31, 2014 , r espectively. Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial. The net v olume of Card Member loans purchased during both the nine months ended September 30 , 2015 and 2014 was $ 2.9 billion . Card Member loans as of September 30 , 2015 and December 31, 2014 consisted of : (Millions) 2015 2014 International Card Services $ 391 $ 401 Less: Reserve for losses 4 3 Card Member loans, net (a) $ 387 $ 398 C ard Member loans modified in a TDR program were immaterial. Card Member Receivables and Loans Aging Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presen ts the aging of Card Member receivables and Card Member loans as of September 30 , 2015 and December 31, 2014 : 30-59 60-89 Days Days 90+ Days 2015 (Millions) Current Past Due Past Due Past Due Total Card Member Receivables: U.S. Card Services $ 4,491 $ 18 $ 8 $ 15 $ 4,532 International Card Services 1,956 10 6 12 1,984 Global Commercial Services (a) (b) (b) (b) 84 11,815 Card Member Loans: International Card Services $ 389 $ 1 $ ― $ 1 $ 391 30-59 60-89 Days Days 90+ Days 2014 (Millions) Current Past Due Past Due Past Due Total Card Member Receivables: U.S. Card Services $ 2,729 $ 12 $ 5 $ 9 $ 2,755 International Card Services 1,296 8 4 8 1,316 Global Commercial Services (a) (b) (b) (b) 89 10,436 Card Member Loans: International Card Services $ 399 $ 1 $ ― $ 1 $ 401 For Card Member receivables in Global Commercial Services ( 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 statem ent date. In addition, if collection procedures are initiated 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 constr aints. 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 Receivables and Loans The following table s present the key credit quality indicators as of or for the nine months ended September 30 : 2015 2014 30+ Days 30+ Days Net Past Due Net Past Due Write-off as a % of Write-off as a % of Rate (a) Total Rate (a) Total Card Member Receivables: U.S. Card Services 0.85 % 0.90 % 1.13 % 1.02 % International Card Services 1.59 % 1.41 % 1.96 % 1.61 % Card Member Loans: International Card Services 1.03 % 0.51 % 1.13 % 0.56 % 2015 2014 Net Loss 90+ Days Net Loss 90+ Days Ratio as a Past Ratio as a Past % of Billing % of Billing Charge as a % of Charge as a % of Volume (b) Receivables Volume (b) Receivables Card Member Receivables: Global Commercial Services 0.07 % 0.71 % 0.07 % 0.79 % Represents the amount of Card Member receivables or Card Member loans owned by Credco th at are written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods indicated. Represents the amount of Card Member receivables owned by Credco th at are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated. |
Reserves for Losses
Reserves for Losses | 9 Months Ended |
Sep. 30, 2015 | |
Reserves for Losses [Abstract] | |
Reserves for Losses | 3 . Reserves for Losses Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. Changes in Card Member Receivables Reserve for Losses The following table presents changes in the Card Member receivables reserve for losses for the nine months ended September 30 : (Millions) 2015 2014 Balance, January 1 $ 94 $ 76 Provisions 116 145 Other credits (a) 32 15 Net write-offs (b) (124) (131) Other debits (c) (9) (7) Balance, September 30 (d) $ 109 $ 98 Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $ 5.8 billion and $ 3.4 billion for the nine months ended September 30 , 2015 and 2014 , respectively . Net of recoveries of $ 79 million and $ 76 million for the nine months ended September 30 , 2015 and 2014 , respectively. Primarily reserve balances appli cable to participation interests in Card Member receiva bles sold to an affiliate and, for 2014, reserves applicable to Card Member receivables sold to the joint ventures that issue American Exp ress cards in certain countries (American Express joint ventures) following the termination of the agreements to purchase Card Member receivables in the third quarter of 2014. Sales of these participation interests and Card Member receivables totaled $ 1.4 billion and $ 0.4 billion for the nine months ended September 30 , 2015 and 2014 , respectively. In the first quar ter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card M ember receivables and related reserves with a corresponding decline in loans to affiliates. Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the nine months ended September 30 : (Millions) 2015 2014 Balance, January 1 $ 3 $ 4 Provisions 4 6 Net write-offs (a) (3) (4) Other debits (b) ― (5) Balance, September 30 $ 4 $ 1 Net of recoveries of $ 1 million and $ 3 million for the nine months ended September 30 , 2015 and 2014 , respectively . Primarily reserve balances applicable to sales of Card Member loans to the American Express joint ventures following the termination of the agreements to purchase Card Member loans in the third quarter of 2014. Card Member loans sold totaled nil and $183 million for the nine months ended September 30, 2015 and 2014, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 4 . Derivatives and Hedging Activities Credco 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 and foreign exchange rate s, and are carried at fair value on the Consolidated Balance Sheets . These instruments enable end users to increase, reduce or alter expo sure to various market risks and, for that reason, are an integral component of Credco’s market risk management. Credco does not transact in de rivatives for trading purposes. In relation to Credco’s credit risk, under the terms of the derivative agreements it has with its various counterparties, Credco 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 Credc o’s derivative counterparties as of September 30 , 2015 and December 31, 2014 , Credco does not have derivative positions that warrant credit valuation adjustments . The following table summarizes the total fair value, excluding interest acc ruals, of deriva tive assets and liabilities as of September 30 , 2015 and December 31, 2014 : Other Assets Accrued Interest and Other Liabilities Fair Value Fair Value (Millions) 2015 2014 2015 2014 Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges $ 177 $ 90 $ ― $ 4 Foreign exchange contracts Net investment hedges 164 186 2 ― Total derivatives designated as hedging instruments 341 276 2 4 Derivatives not designated as hedging instruments: Foreign exchange contracts 73 73 34 49 Total derivatives, gross 414 349 36 53 Less: Cash collateral netting (a) (174) (63) ― ― Derivative asset and derivative liability netting (b) (36) (50) (36) (50) Total derivatives, net (c) $ 204 $ 236 $ ― $ 3 Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligati on to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceab le master netting arrangement. From time to time, Credco also receives non - cash collateral from counterparties in the form of security interest s in U.S. Treasury securities , which reduces Credco ’s risk exposure , but does not reduce the net exposur e on Credco ’s Consolidated Balance Sheets. Credco had such non-cash collateral as of December 31, 2014 , with a fair value of $ 40 million, none of which was sold or repledged . Credco did not have any such non-cash collateral as of September 30 , 2015 . Additionally, Credco posted $ 133 million and $ 91 million as of September 30 , 2015 and December 31, 2014 , respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are record ed within O ther assets on Credco’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. Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are pr esented within Other assets and Accrued interest and other liabilities on Credco’s Consolidated Balance Sheets. A majority of Credco’s derivative asset s and liabilities as of September 30 , 2015 and December 31, 2014 are subject to master netting agreements with its derivative counterparties. In addition, Credco has no derivative amounts subject to enforceable master netting arrangements that are not offset on Credco’s Consolidated Balance Sheets. Fair Value Hedges C redco is exposed to interest rate risk associated with its fixed-rate long-term debt. Credco uses interest rate swaps to economically conve rt certain fixed-rate debt obligations to floating-rate obligations at the time of issuance. As of September 30 , 2015 and December 31, 2014 , Credco hedged $ 15.6 billion and $ 14.7 billion, respectively, of its fixed-rate debt to floating-rate debt using interest rate swaps. The followin g table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco’s fair value hedges for the three and nine months ended September 30 : Three Months Ended September 30: (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative relationship Income Statement Line Item 2015 2014 Income Statement Line Item 2015 2014 2015 2014 Interest rate contracts Other expenses $ 89 $ (77) Other expenses $ (93) $ 81 $ (4) $ 4 Nine Months Ended September 30: (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative relationship Income Statement Line Item 2015 2014 Income Statement Line Item 2015 2014 2015 2014 Interest rate contracts Other expenses $ 91 $ (119) Other expenses $ (91) $ 128 $ ― $ 9 Credco also recognized a net reduction in interest expense on long-term debt of $ 47 million and $ 50 million for the three months ended September 30 , 2015 and 2014 , respectively , and $ 133 million and $ 145 million for the nine months ended September 30 , 2015 and 2014 , respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair val ue hedges. Net Investment Hedges The effective portion of the gain or (loss) on net investment hedges, net of taxes, recorded in Accumula ted Other Comprehensive Loss as part of the cumulative translation adjustment , was $ 188 million and $ 116 million for the three months ended September 30 , 2015 and 2014 , respectively, and $ 274 million and $ (10) million for the nine months ended September 30 , 2015 and 2014 , respectively, with any ineff ective portion recognized in O ther expenses durin g the period of change . During the three and nine months ended September 30 , 2015 and 2014 , no ineffectiveness was recognized in either of these two periods . The following table summarizes the impact on the Consolidated Statements of Income and retained earnings associated with Credco’s derivatives not designated as hedges : Pretax Gains (losses) Three Months Ended Nine Months Ended September 30, September 30, Amount Amount Description (Millions) Income Statement Line Item 2015 2014 2015 2014 Foreign exchange contracts Other expenses $ 42 $ (14) $ 11 $ 49 Total $ 42 $ (14) $ 11 $ 49 |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Values | 5 . Fair Values Financial Assets and Financial Liabilities Carried at Fair Value The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy as Level 2 , as of September 30 , 2015 and Decem ber 31, 2014 : (Millions) 2015 2014 Assets: Derivatives (a) $ 414 $ 349 Total assets 414 349 Liabilities: Derivatives (a) 36 53 Total liabilities $ 36 $ 53 Refer to Note 4 for the fair values of derivative assets and liabilities, on a further disaggregated basis. The following table summarizes the estimated fair values of Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of September 30 , 2015 and December 31, 2014 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30 , 2015 and December 31, 2014 , and require management judgment. These figure s may not be indicative of future fair values, nor can the fair value of Credco be reliably estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2015 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value $ 19.5 $ 19.5 $ 0.1 (a) $ 19.4 $ ― Financial assets carried at other than fair value Card Member loans, net 0.4 0.4 ― ― 0.4 Loans to affiliates and others 9.8 9.6 ― 6.9 2.7 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 6.5 6.5 ― 6.5 ― Financial liabilities carried at other than fair value Long-term debt $ 21.3 $ 21.3 $ ― $ 21.3 $ ― Carrying Corresponding Fair Value Amount 2014 (Billions) Value Total Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value $ 16.8 $ 16.8 $ 16.8 $ ― Financial assets carried at other than fair value Card Member loans, net 0.4 0.4 ― 0.4 Loans to affiliates and others 15.3 15.2 12.3 2.9 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 6.0 6.0 6.0 ― Financial liabilities carried at other than fair value Long-term debt $ 24.3 $ 24.5 $ 24.5 $ ― (a) Reflects cash and due from banks . Nonrecurring Fair Value Measurements D uring the nine months ended September 30 , 2015 and during the year ended December 31, 2014 , Credco did not have any assets that were measured at fair value due to impairment on a nonrecurring basis. |
Variable Interest Entity
Variable Interest Entity | 9 Months Ended |
Sep. 30, 2015 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entity | 6 . Variable Interest Entity Credco has established a V ariable I nterest E ntity (VIE) , American Express Canada Credit Corporation (AECCC), used primar ily to lend funds to affiliates, through the issuance of notes in Canada under a medium-term note program. All notes issued under this program are fully guaranteed by Credco . Credco is considered the primary beneficiary of the entity and owns all of the outstanding voting interests and, therefore, consolidates t he entity in accordance with accounting guidance governing consolidation of VIEs. Total assets as of September 30 , 2015 and December 31, 2014 were $ 1.8 billion and $ 2.1 billion, respectively, the majority of which we re el iminated in consolidation. Total liabilities as of September 30 , 2015 and December 31, 2014 were $ 1.7 billion and $ 2.0 billion, respectively . As of September 30 , 2015 and December 31, 2014 , $ 845 million and $ 969 million, respectively, of liabilities were eliminated in consolidation. The assets of the VIE are not used solely to settle the obligations of the VIE. The note holders of the VIE have recourse to Credco . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2015 | |
Changes In Accumulated Other Comprehensive Loss Income Disclosure [Abstract] | |
Changes In Accumulated Other Comprehensive (Loss) Income | 7 . Changes In Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three and nine months ended September 30 , 2015 and 2014 were as follows: Foreign Accumulated Currency Other Translation Comprehensive Three Months Ended September 30, 2015 (Millions) , net of tax Adjustments (Loss) Income Balances as of June 30, 2015 $ (941) $ (941) Net translation loss on investments in foreign operations (376) (376) Net gains related to hedges of investment in foreign operations 188 188 Net change in accumulated other comprehensive loss (188) (188) Balances as of September 30, 2015 $ (1,129) $ (1,129) Foreign Accumulated Currency Other Translation Comprehensive Nine Months Ended September 30, 2015 (Millions) , net of tax Adjustments (Loss) Income Balances as of December 31, 2014 $ (787) $ (787) Net translation loss on investments in foreign operations (616) (616) Net gains related to hedges of investment in foreign operations 274 274 Net change in accumulated other comprehensive loss (342) (342) Balances as of September 30, 2015 $ (1,129) $ (1,129) Foreign Accumulated Currency Other Translation Comprehensive Three Months Ended September 30, 2014 (Millions) , net of tax Adjustments (Loss) Income Balances as of June 30, 2014 $ (459) $ (459) Net translation loss on investments in foreign operations (245) (245) Net gains related to hedges of investment in foreign operations 116 116 Net change in accumulated other comprehensive loss (129) (129) Balances as of September 30, 2014 $ (588) $ (588) Foreign Accumulated Currency Other Translation Comprehensive Nine Months Ended September 30, 2014 (Millions) , net of tax Adjustments (Loss) Income Balances as of December 31, 2013 $ (478) $ (478) Net translation loss on investments in foreign operations (100) (100) Net losses related to hedges of investment in foreign operations (10) (10) Net change in accumulated other comprehensive loss (110) (110) Balances as of September 30, 2014 $ (588) $ (588) No amoun ts were reclassified out of Accumulated Other Comprehensive Loss into the C onsolidated Statements of Income and Retained Earnings for the three and nine months ended September 30 , 2015 and 2014 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 8 . Income Taxes The results of operations of Credco are included in the consolidated U.S. federal income tax return of American Express. Under an agreement with American Express, provision for income taxes is recognized on a separate company basis. If benefits for net operating losses, future tax deduction s and foreign tax credits cannot be recognized on a separate company basis, such benefits are then recognized based upon a share, derived by formula, of those deductions and credits that are recognizable on an American Express consolidated reporting basis. American Express is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which American Express has significant business operations. The tax years under examination and open for examinati on vary by jurisdiction. The IRS has completed its field examination of American Express’ federal tax returns for years through 2007 ; however, refund claims for those years continue to be reviewed by the IRS. In addition, American Express is currentl y under examination by the IRS for the years 2008 through 2011 . Credco believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $ 269 million principally as a result of po tential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular ju risdiction or jurisdictions. Of the $ 269 million of unrecognized tax benefits, approximately $ 267 million relates to amounts that, if recognized, would be recorded to shareholder’s equity and would not impact Credco’s re sults of operations or the effective tax rate. The effective tax rates were 13 .3 percent and 15.2 percent for the three and nine months ended September 30 , 2015 , respectively, and (1.2) percent and (6) percent for the three and nine months ended September 30 , 2014 , respectively. The tax rate in each of the periods reflects the geographic mix of expenses in the United States attracting a 35 percent statutory benefit and foreign earnings taxed at lower rates, which are indefinitely reinvested. In addition, the effecti ve tax rates for each of the periods reflect the impact of certain prior years’ tax items, including those noted below. The results for the nine months ended September 30 , 2015 reflect out-of-period corrections that increa sed tax expense by $11 million. Th e corrections relate to tax calculations of foreign exchange gains/losses in one jurisdiction reflected in the 2014 results. None of the current or prior period financial statements were materially misstated from these corrections. The tax rate in each of the periods reflects the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States. Credco’s provision for income taxes for interim financial periods is not based on an estimated annual effective rate due to volatility in certain components of revenues and expenses that prevents Credco from projecting a reliable estimate of full year pretax income. A discrete calculation of the provision for income taxes is calculated for each interim period. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable And Loans and Reserves For Cardmember Losses [Abstract] | |
Card Member And Other Receivables And Loans | American Express’ charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively. |
Reserves For Losses Policy [Abstract] | |
Reserves for losses | Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. |
Derivatives And Hedging Activities Policy [Abstract] | |
Derivatives | Credco 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 and foreign exchange rate s, and are carried at fair value on the Consolidated Balance Sheets . These instruments enable end users to increase, reduce or alter expo sure to various market risks and, for that reason, are an integral component of Credco’s market risk management. Credco does not transact in de rivatives for trading purposes. |
Card Member Receivables and L17
Card Member Receivables and Loans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable And Loans Tables [Abstract] | |
Card Member receivables detail | Card Member receivables as of September 30 , 2015 and December 31, 2014 consisted of: (Millions) 2015 2014 U.S. Card Services $ 4,532 $ 2,755 International Card Services (a)(b) 1,984 1,316 Global Commercial Services (b) 11,815 10,436 Card Member receivables (c) 18,331 14,507 Less: Reserve for losses 109 94 Card Member receivables, net (d) $ 18,222 $ 14,413 International is comprised of consumer and small business services. In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves with a corresponding decline in loans to affiliates. Net of deferr ed discount revenue totaling $ 22 million and $ 16 million as of September 30 , 2015 and December 31, 2014 , r espectively. Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial. |
Card Member loans detail | Card Member loans as of September 30 , 2015 and December 31, 2014 consisted of : (Millions) 2015 2014 International Card Services $ 391 $ 401 Less: Reserve for losses 4 3 Card Member loans, net (a) $ 387 $ 398 C ard Member loans modified in a TDR program were immaterial. |
Aging of Card Member loans and receivables | The following table presen ts the aging of Card Member receivables and Card Member loans as of September 30 , 2015 and December 31, 2014 : 30-59 60-89 Days Days 90+ Days 2015 (Millions) Current Past Due Past Due Past Due Total Card Member Receivables: U.S. Card Services $ 4,491 $ 18 $ 8 $ 15 $ 4,532 International Card Services 1,956 10 6 12 1,984 Global Commercial Services (a) (b) (b) (b) 84 11,815 Card Member Loans: International Card Services $ 389 $ 1 $ ― $ 1 $ 391 30-59 60-89 Days Days 90+ Days 2014 (Millions) Current Past Due Past Due Past Due Total Card Member Receivables: U.S. Card Services $ 2,729 $ 12 $ 5 $ 9 $ 2,755 International Card Services 1,296 8 4 8 1,316 Global Commercial Services (a) (b) (b) (b) 89 10,436 Card Member Loans: International Card Services $ 399 $ 1 $ ― $ 1 $ 401 For Card Member receivables in Global Commercial Services ( 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 statem ent date. In addition, if collection procedures are initiated 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 constr aints. 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 nine months ended September 30 : 2015 2014 30+ Days 30+ Days Net Past Due Net Past Due Write-off as a % of Write-off as a % of Rate (a) Total Rate (a) Total Card Member Receivables: U.S. Card Services 0.85 % 0.90 % 1.13 % 1.02 % International Card Services 1.59 % 1.41 % 1.96 % 1.61 % Card Member Loans: International Card Services 1.03 % 0.51 % 1.13 % 0.56 % 2015 2014 Net Loss 90+ Days Net Loss 90+ Days Ratio as a Past Ratio as a Past % of Billing % of Billing Charge as a % of Charge as a % of Volume (b) Receivables Volume (b) Receivables Card Member Receivables: Global Commercial Services 0.07 % 0.71 % 0.07 % 0.79 % Represents the amount of Card Member receivables or Card Member loans owned by Credco th at are written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods indicated. Represents the amount of Card Member receivables owned by Credco th at are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated. |
Reserves for Losses (Tables)
Reserves for Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reserves For Losses Tables [Abstract] | |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the nine months ended September 30 : (Millions) 2015 2014 Balance, January 1 $ 94 $ 76 Provisions 116 145 Other credits (a) 32 15 Net write-offs (b) (124) (131) Other debits (c) (9) (7) Balance, September 30 (d) $ 109 $ 98 Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $ 5.8 billion and $ 3.4 billion for the nine months ended September 30 , 2015 and 2014 , respectively . Net of recoveries of $ 79 million and $ 76 million for the nine months ended September 30 , 2015 and 2014 , respectively. Primarily reserve balances appli cable to participation interests in Card Member receiva bles sold to an affiliate and, for 2014, reserves applicable to Card Member receivables sold to the joint ventures that issue American Exp ress cards in certain countries (American Express joint ventures) following the termination of the agreements to purchase Card Member receivables in the third quarter of 2014. Sales of these participation interests and Card Member receivables totaled $ 1.4 billion and $ 0.4 billion for the nine months ended September 30 , 2015 and 2014 , respectively. In the first quar ter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card M ember receivables and related reserves with a corresponding decline in loans to affiliates. |
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the nine months ended September 30 : (Millions) 2015 2014 Balance, January 1 $ 3 $ 4 Provisions 4 6 Net write-offs (a) (3) (4) Other debits (b) ― (5) Balance, September 30 $ 4 $ 1 Net of recoveries of $ 1 million and $ 3 million for the nine months ended September 30 , 2015 and 2014 , respectively . Primarily reserve balances applicable to sales of Card Member loans to the American Express joint ventures following the termination of the agreements to purchase Card Member loans in the third quarter of 2014. Card Member loans sold totaled nil and $183 million for the nine months ended September 30, 2015 and 2014, respectively. |
Derivatives and Hedging Activ19
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivatives And Hedging Activities Tables [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table summarizes the total fair value, excluding interest acc ruals, of deriva tive assets and liabilities as of September 30 , 2015 and December 31, 2014 : Other Assets Accrued Interest and Other Liabilities Fair Value Fair Value (Millions) 2015 2014 2015 2014 Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges $ 177 $ 90 $ ― $ 4 Foreign exchange contracts Net investment hedges 164 186 2 ― Total derivatives designated as hedging instruments 341 276 2 4 Derivatives not designated as hedging instruments: Foreign exchange contracts 73 73 34 49 Total derivatives, gross 414 349 36 53 Less: Cash collateral netting (a) (174) (63) ― ― Derivative asset and derivative liability netting (b) (36) (50) (36) (50) Total derivatives, net (c) $ 204 $ 236 $ ― $ 3 Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligati on to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceab le master netting arrangement. From time to time, Credco also receives non - cash collateral from counterparties in the form of security interest s in U.S. Treasury securities , which reduces Credco ’s risk exposure , but does not reduce the net exposur e on Credco ’s Consolidated Balance Sheets. Credco had such non-cash collateral as of December 31, 2014 , with a fair value of $ 40 million, none of which was sold or repledged . Credco did not have any such non-cash collateral as of September 30 , 2015 . Additionally, Credco posted $ 133 million and $ 91 million as of September 30 , 2015 and December 31, 2014 , respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are record ed within O ther assets on Credco’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. Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are pr esented within Other assets and Accrued interest and other liabilities on Credco’s Consolidated Balance Sheets. |
Effect of fair value hedges on results of operations | The followin g table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco’s fair value hedges for the three and nine months ended September 30 : Three Months Ended September 30: (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative relationship Income Statement Line Item 2015 2014 Income Statement Line Item 2015 2014 2015 2014 Interest rate contracts Other expenses $ 89 $ (77) Other expenses $ (93) $ 81 $ (4) $ 4 Nine Months Ended September 30: (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative relationship Income Statement Line Item 2015 2014 Income Statement Line Item 2015 2014 2015 2014 Interest rate contracts Other expenses $ 91 $ (119) Other expenses $ (91) $ 128 $ ― $ 9 |
Derivative instruments gain (loss) recognized in income | The following table summarizes the impact on the Consolidated Statements of Income and retained earnings associated with Credco’s derivatives not designated as hedges : Pretax Gains (losses) Three Months Ended Nine Months Ended September 30, September 30, Amount Amount Description (Millions) Income Statement Line Item 2015 2014 2015 2014 Foreign exchange contracts Other expenses $ 42 $ (14) $ 11 $ 49 Total $ 42 $ (14) $ 11 $ 49 |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Values (Tables) [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy as Level 2 , as of September 30 , 2015 and Decem ber 31, 2014 : (Millions) 2015 2014 Assets: Derivatives (a) $ 414 $ 349 Total assets 414 349 Liabilities: Derivatives (a) 36 53 Total liabilities $ 36 $ 53 Refer to Note 4 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 Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of September 30 , 2015 and December 31, 2014 . 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 $ 19.5 $ 19.5 $ 0.1 (a) $ 19.4 $ ― Financial assets carried at other than fair value Card Member loans, net 0.4 0.4 ― ― 0.4 Loans to affiliates and others 9.8 9.6 ― 6.9 2.7 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 6.5 6.5 ― 6.5 ― Financial liabilities carried at other than fair value Long-term debt $ 21.3 $ 21.3 $ ― $ 21.3 $ ― Carrying Corresponding Fair Value Amount 2014 (Billions) Value Total Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value $ 16.8 $ 16.8 $ 16.8 $ ― Financial assets carried at other than fair value Card Member loans, net 0.4 0.4 ― 0.4 Loans to affiliates and others 15.3 15.2 12.3 2.9 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 6.0 6.0 6.0 ― Financial liabilities carried at other than fair value Long-term debt $ 24.3 $ 24.5 $ 24.5 $ ― (a) Reflects cash and due from banks . |
Changes in Accumulated Other 21
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of comprehensive income (loss), net of tax | Changes in each component for the three and nine months ended September 30 , 2015 and 2014 were as follows: Foreign Accumulated Currency Other Translation Comprehensive Three Months Ended September 30, 2015 (Millions) , net of tax Adjustments (Loss) Income Balances as of June 30, 2015 $ (941) $ (941) Net translation loss on investments in foreign operations (376) (376) Net gains related to hedges of investment in foreign operations 188 188 Net change in accumulated other comprehensive loss (188) (188) Balances as of September 30, 2015 $ (1,129) $ (1,129) Foreign Accumulated Currency Other Translation Comprehensive Nine Months Ended September 30, 2015 (Millions) , net of tax Adjustments (Loss) Income Balances as of December 31, 2014 $ (787) $ (787) Net translation loss on investments in foreign operations (616) (616) Net gains related to hedges of investment in foreign operations 274 274 Net change in accumulated other comprehensive loss (342) (342) Balances as of September 30, 2015 $ (1,129) $ (1,129) Foreign Accumulated Currency Other Translation Comprehensive Three Months Ended September 30, 2014 (Millions) , net of tax Adjustments (Loss) Income Balances as of June 30, 2014 $ (459) $ (459) Net translation loss on investments in foreign operations (245) (245) Net gains related to hedges of investment in foreign operations 116 116 Net change in accumulated other comprehensive loss (129) (129) Balances as of September 30, 2014 $ (588) $ (588) Foreign Accumulated Currency Other Translation Comprehensive Nine Months Ended September 30, 2014 (Millions) , net of tax Adjustments (Loss) Income Balances as of December 31, 2013 $ (478) $ (478) Net translation loss on investments in foreign operations (100) (100) Net losses related to hedges of investment in foreign operations (10) (10) Net change in accumulated other comprehensive loss (110) (110) Balances as of September 30, 2014 $ (588) $ (588) |
Card Member Receivables and L22
Card Member Receivables and Loans (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Accounts Receivable [Abstract] | ||||
Card Member receivables | $ 18,331 | $ 14,507 | ||
Less: Reserve for losses | 109 | 94 | $ 98 | $ 76 |
Card Member receivables, net | 18,222 | 14,413 | ||
U.S. Card Services [Member] | ||||
Accounts Receivable [Abstract] | ||||
Card Member receivables | 4,532 | 2,755 | ||
Global Commercial Services [Member] | ||||
Accounts Receivable [Abstract] | ||||
Card Member receivables | 11,815 | 10,436 | ||
International Card Services [Member] | ||||
Accounts Receivable [Abstract] | ||||
Card Member receivables | $ 1,984 | $ 1,316 |
Card Member Receivables and L23
Card Member Receivables and Loans (Details 1) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Card Member loans | ||||
Less: Reserve for losses | $ 4 | $ 3 | $ 1 | $ 4 |
Card Member loans, less reserves | 387 | 398 | ||
International Card Services [Member] | ||||
Card Member loans | ||||
Card Member loans | $ 391 | $ 401 |
Card Member Receivables and L24
Card Member Receivables and Loans (Details 2) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
U.S. Card Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | $ 4,491 | $ 2,729 |
Total aging | 4,532 | 2,755 |
U.S. Card Services [Member] | 30 to 59 days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 18 | 12 |
U.S. Card Services [Member] | 60 to 89 days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 8 | 5 |
U.S. Card Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 15 | 9 |
International Card Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 1,956 | 1,296 |
Total aging | 1,984 | 1,316 |
International Card Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 389 | 399 |
Total aging | 391 | 401 |
International Card Services [Member] | 30 to 59 days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 10 | 8 |
International Card Services [Member] | 30 to 59 days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 1 | 1 |
International Card Services [Member] | 60 to 89 days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 6 | 4 |
International Card Services [Member] | 60 to 89 days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 0 | 0 |
International Card Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 12 | 8 |
International Card Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 1 | 1 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Total aging | 11,815 | 10,436 |
Global Commercial Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | $ 84 | $ 89 |
Card Member Receivables and L25
Card Member Receivables and Loans (Details 3) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
U.S. Card Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Write-off Rate | 0.85% | 1.13% |
30 Days Past Due as a % of Total | 0.90% | 1.02% |
International Card Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Write-off Rate | 1.59% | 1.96% |
30 Days Past Due as a % of Total | 1.41% | 1.61% |
International Card Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Write-off Rate | 1.03% | 1.13% |
30 Days Past Due as a % of Total | 0.51% | 0.56% |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Loss Ratio as a % of Charge Volume | 0.07% | 0.07% |
90 Days Past Billing as a % of Receivables | 0.71% | 0.79% |
Card Member Receivables and L26
Card Member Receivables and Loans (Details Textuals) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net volume of Card Member receivables purchased | $ 167,000 | $ 164,000 | |
Net volume of Card Member loans purchased | 2,900 | $ 2,900 | |
Deferred discount revenue on Card Member receivable | 22 | $ 16 | |
RFC VIII [Member] | |||
Related Party Transaction [Line Items] | |||
Participation Interests In Card Member Receivables Purchased | $ 4,500 | $ 2,800 |
Reserves (Details)
Reserves (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in the Card Member receivable reserve for losses | ||
Balance, January 1 | $ 94 | $ 76 |
Provisions | 116 | 145 |
Other credits | 32 | 15 |
Net write-offs | (124) | (131) |
Other debits | (9) | (7) |
Balance, June 30 | $ 109 | $ 98 |
Reserves (Details 1)
Reserves (Details 1) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in the Card Member loans reserve for losses | ||
Balance, January 1 | $ 3 | $ 4 |
Provisions | 4 | 6 |
Net write-offs | (3) | (4) |
Other debits | 0 | (5) |
Balance, June 30 | $ 4 | $ 1 |
Reserves (Details Textuals)
Reserves (Details Textuals) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Reserves For Losses (Textuals) [Abstract] | ||
Participation interest in Card Member receivables purchased from affiliates | $ 5,800 | $ 3,400 |
Recoveries, Card Member receivables | 79 | 76 |
Amount of Card Member loan sold to joint ventures | 0 | 183 |
Recoveries, Card Member loans | 1 | 3 |
Sale of participation interest in Card Member receivables and Card Member receivables | $ 1,400 | $ 400 |
Derivatives and Hedging Activ30
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | $ 414 | $ 349 |
Cash collateral netting | (174) | (63) |
Derivative asset and liability netting | (36) | (50) |
Total derivatives assets,net | 204 | 236 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 341 | 276 |
Other Assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 73 | 73 |
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 | 177 | 90 |
Other Assets [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 164 | 186 |
Accrued Interest And Other Liabilities Member [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liability | 36 | 53 |
Cash collateral netting | 0 | 0 |
Derivative asset and liability netting | (36) | (50) |
Total derivatives liabilities, net | 0 | 3 |
Accrued Interest And Other Liabilities Member [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liability | 2 | 4 |
Accrued Interest And Other Liabilities Member [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liability | 34 | 49 |
Accrued Interest And Other Liabilities Member [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liability | 0 | 4 |
Accrued Interest And Other Liabilities Member [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liability | $ 2 | $ 0 |
Derivatives and Hedging Activ31
Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contract [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative contract | $ 89 | $ (77) | $ 91 | $ (119) |
Hedged item | (93) | 81 | (91) | 128 |
Net hedge ineffectiveness | $ (4) | $ 4 | $ 0 | $ 9 |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities (Details 2) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax (losses) gains | $ 42 | $ (14) | $ 11 | $ 49 |
Other Expense [Member] | Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax (losses) gains | $ 42 | $ (14) | $ 11 | $ 49 |
Derivatives and Hedging Activ33
Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Derivatives And Hedging Activities Textuals [Abstract] | |||||
Net reduction in interest expense | $ 47 | $ 50 | $ 133 | $ 145 | |
Derivative [Line Items] | |||||
Ineffectiveness reclassified from AOCI into income | 0 | 0 | 0 | 0 | |
Margin on interest rate swap not netted | 133 | 133 | $ 91 | ||
Fair Value Hedging [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of long-term debt | 15,600 | 15,600 | 14,700 | ||
Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Effection portion of gain (loss) on hedges | 188 | $ 116 | 274 | $ (10) | |
Credit Valuation Adjustment [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of long-term debt | 0 | 0 | 0 | ||
None Sold or Repledged [Member] | |||||
Offsetting Assets [Line Items] | |||||
Securities received as collateral | 0 | 0 | 40 | ||
Individually Significant Counterparties [Member] | |||||
Offsetting Assets [Line Items] | |||||
Total derivatives assets,net | $ 0 | $ 0 | $ 0 |
Fair Value (Details)
Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets [Abstract] | ||
Derivatives | $ 414 | $ 349 |
Total assets | 414 | 349 |
Liabilities [Abstract] | ||
Derivatives | 36 | 53 |
Total liabilities | $ 36 | $ 53 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets carried at other than fair value [Abstract] | ||
Card Member loans, less reserves | $ 387 | $ 398 |
Loans to affiliates and other | 9,818 | 15,303 |
Financial liabilities carried at other than fair value [Abstract] | ||
Long-term Debt | 21,296 | 24,282 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Financial assets for which carrying values equal or approximate fair value | 19,500 | 16,800 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 6,500 | 6,000 |
Level 2 [Member] | ||
Financial Assets: | ||
Financial assets for which carrying values equal or approximate fair value | 19,400 | 16,800 |
Financial assets carried at other than fair value [Abstract] | ||
Card Member loans, less reserves | 0 | 0 |
Loans to affiliates and other | 6,900 | 12,300 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 6,500 | 6,000 |
Financial liabilities carried at other than fair value [Abstract] | ||
Long-term Debt | 21,300 | 24,500 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Financial assets for which carrying values equal or approximate fair value | 0 | 0 |
Financial assets carried at other than fair value [Abstract] | ||
Card Member loans, less reserves | 400 | 400 |
Loans to affiliates and other | 2,700 | 2,900 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 |
Financial liabilities carried at other than fair value [Abstract] | ||
Long-term Debt | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Financial assets for which carrying values equal or approximate fair value | 19,500 | 16,800 |
Financial assets carried at other than fair value [Abstract] | ||
Card Member loans, less reserves | 400 | 400 |
Loans to affiliates and other | 9,600 | 15,200 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 6,500 | 6,000 |
Financial liabilities carried at other than fair value [Abstract] | ||
Long-term Debt | 21,300 | $ 24,500 |
FairValueInputsLevel1Member | ||
Financial Assets: | ||
Financial assets for which carrying values equal or approximate fair value | $ 100 |
Fair Value (Details Textuals)
Fair Value (Details Textuals) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value for impairment | $ 0 | $ 0 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 29,988 | $ 32,840 |
Total liabilities | 27,861 | 30,451 |
Variable Interest Entity, Primary Beneficiary [Member] | American Express Canada Credit Corporation Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 1,800 | 2,100 |
Total liabilities | 1,700 | 2,000 |
Liabilities eliminated in consolidation | $ 845 | $ 969 |
Changes In Accumulated Other 38
Changes In Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in other comprehensive income | ||||
Balances as of start of period | $ (787) | |||
Balances as of end of period | $ (1,129) | (1,129) | ||
Foreign Currency Translation Adjustment [Member] | ||||
Changes in other comprehensive income | ||||
Balances as of start of period | (941) | $ (459) | (787) | $ (478) |
Net translation loss on investment in foreign operations | (376) | (245) | (616) | (100) |
Net gains (losses) related to hedges of investment in foreign operations | 188 | 116 | 274 | (10) |
Net change in accumulated other comprehensive loss | (188) | (129) | (342) | (110) |
Balances as of end of period | (1,129) | (588) | (1,129) | (588) |
Accumulated Other Comprehensive (Loss) Income [Member] | ||||
Changes in other comprehensive income | ||||
Balances as of start of period | (941) | (459) | (787) | (478) |
Net translation loss on investment in foreign operations | (376) | (245) | (616) | (100) |
Net gains (losses) related to hedges of investment in foreign operations | 188 | 116 | 274 | (10) |
Net change in accumulated other comprehensive loss | (188) | (129) | (342) | (110) |
Balances as of end of period | $ (1,129) | $ (588) | $ (1,129) | $ (588) |
Changes in Accumulated Other 39
Changes in Accumulated Other Comprehensive (Loss) Income (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Loss Income (Textuals) [Abstract] | ||||
Amount of gain loss reclassified from accumulated other comprehensive income to income | $ 0 | $ 0 | $ 0 | $ 0 |
Income Tax (Details Textuals)
Income Tax (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes (Textuals) [Abstract] | ||||
Possible decrease in unrecognized tax benefits as a result of potential resolutions of prior years' tax | $ 269 | $ 269 | ||
Unrecognized tax benefits, amounts recorded to equity, if recognized | $ 267 | $ 267 | ||
Effective tax rate | 13.30% | (1.20%) | 15.20% | (6.00%) |
U.S. statutory federal income tax rate | 35.00% | |||
Out of period tax adjustment | $ 11 | |||
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 |