Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 09, 2016 | |
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 | Mar. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Discount revenue earned from purchased Card Member receivables and loans | $ 120 | $ 109 |
Interest income from affiliates and other | 51 | 79 |
Finance revenue | 9 | 7 |
Total revenues | 180 | 195 |
Expenses | ||
Provisions for losses | 36 | 40 |
Interest expense | 77 | 100 |
Interest expense to affiliates | 5 | 2 |
Other, net | 5 | (17) |
Total expenses | 123 | 125 |
Pretax income | 57 | 70 |
Income tax provision | 6 | 2 |
Net income | 51 | 68 |
Retained earnings at beginning of period | 3,114 | 3,015 |
Dividends | 0 | (36) |
Retained earnings at end of period | $ 3,165 | $ 3,047 |
Statement of Comprehensive Inco
Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Income and Comprehensive Income [Abstract] | ||
Net income | $ 51 | $ 68 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of tax | 53 | (125) |
Other comprehensive income (loss) | 53 | (125) |
Comprehensive income (loss) | $ 104 | $ (57) |
Statement of Comprehensive Inc4
Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Foreign currency translation adjustment | $ (30) | $ 38 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 220 | $ 173 |
Card Member receivables held for sale | 24 | 24 |
Card Member receivables, less reserves | 18,542 | 17,493 |
Card Member loans, less reserves | 419 | 431 |
Loans to affiliates and other | 10,393 | 14,262 |
Due from affiliates | 1,120 | 615 |
Other assets | 218 | 287 |
Total assets | 30,936 | 33,285 |
Liabilities | ||
Short-term debt | 170 | 2,120 |
Short-term debt to affiliates | 4,728 | 5,439 |
Long-term debt | 21,921 | 21,725 |
Total debt | 26,819 | 29,284 |
Due to affiliates | 1,625 | 1,727 |
Accrued interest and other liabilities | 269 | 155 |
Total liabilities | 28,713 | 31,166 |
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 | 3,165 | 3,114 |
Accumulated other comprehensive loss: | ||
Foreign currency translation adjustments, net of tax | (1,103) | (1,156) |
Total accumulated other comprehensive loss | (1,103) | (1,156) |
Total shareholder's equity | 2,223 | 2,119 |
Total liabilities and shareholder's equity | $ 30,936 | $ 33,285 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Card Member receivables, reserves | $ 118 | $ 114 |
Card Member loans, reserves | $ 5 | $ 4 |
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 | $ 202 | $ 232 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 51 | $ 68 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provisions for losses | 36 | 40 |
Deferred taxes | 3 | (8) |
Amortization of underwriting expenses | 6 | 6 |
Changes in operating assets and liabilities: | ||
Interest, taxes and other amounts due to/from affiliates | 4 | (106) |
Other operating assets and liabilities | 361 | 401 |
Net cash provided by operating activities | 461 | 401 |
Cash Flows from Investing Activities | ||
Net increase in Card Member receivables and loans, including held for sale | (1,063) | (4,186) |
Net decrease in loans to affiliates and other | 3,879 | 3,490 |
Net (increase) decrease in due from affiliates | (565) | 1,186 |
Net cash provided by investing activities | 2,251 | 490 |
Cash Flows from Financing Activities | ||
Net decrease in short-term debt | (1,950) | (769) |
Net decrease in short-term debt to affiliates | (717) | (58) |
Dividends paid | 0 | (36) |
Net cash used in financing activities | (2,667) | (863) |
Effect of foreign currency exchange rates on cash and cash equivalents | 2 | (2) |
Net increase in cash and cash equivalents | 47 | 26 |
Cash and cash equivalents at beginning of period | 173 | 74 |
Cash and cash equivalents at end of period | $ 220 | $ 100 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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. Credco is engaged in the business of financing non-interest-earning Card Member receivables aris ing from the use of the American Express ® Green Card, the American Express ® Gold Card, Platinum Card ® , Corporate Card and other American Express cards issued in the United States and in certain countries outside the United States. Credco also finances cert ain 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 ma terial 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 arr angements 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 charging appropriate discount rates on the purchases of receivables 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 gener ate 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 Consolidated Financial Statements included in Credco’s Annual Report on Form 10-K for the year ended December 31, 2015 (Form 10-K). If not materially different, certain footnote disclosures included therein have been omitted from this Quarterly Report on Form 10-Q. The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments , which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the en tire year. The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of ass ets, liabilities, revenues and expenses. These accounting estimates reflect the best judgment of management, but actual results could differ. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued new accou nting 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 th e 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. Credco 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 20 16, the FASB issued new accounting guidance on the recognition and measurement 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 m easurement of equity securities, and to certain disclosure requirements associated with the fair value of financial instruments. Credco is currently evaluating the impact this guidance will have on its financial position, results of operations and cash flo ws, among other items. Other Information During the first quarter of 2016, American Express reached an agreement to sell the outstanding Card Member loans and receivables held for sale ( HFS ) portfolio related to its cobrand partnership with Costco Wholesale Corporation (Costco) in the United States. The sale of the portfolio is subject to customary closing conditions, and is expected to be completed in June 2016, at which time the related gain will be recognized. American Ex press continues to reflect the portfolio within Card Member loans and receivables held for sale on its Consolidated Balance Sheets and the associated valuation allowance adjustment for credit costs in Other expenses. Credco has also transferred and continu es to reflect the Card Member receivables related to the Costco portfolio (the HFS portfolio) purchased from American Express Receivables Financing Corporation VIII LLC (RFC VIII) in the form of participation interest as Card Member receivables held for sa le on its Consolidated Balance Sheets . Effective for the first quarter of 2016, American Express realigned its businesses as announced during the fourth quarter of 2015 which combined its corporate and small business organizations into a business-to-busine ss focused group and combined its merchant-related businesses, among other changes. To enhance the comparability and usefulness of Credco’s financial statements with that of American Express, Credco has made certain reclassifications of its classes of Card Member receivables and loans for the periods presented . These reclassifications did not have any impact on Credco’s underlying assumptions or judgments with respect to reserves for losses or credit performance . |
Card Member Receivables and Loa
Card Member Receivables and Loans | 3 Months Ended |
Mar. 31, 2016 | |
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. This Note is presented excluding amounts associated with the Card Member receivables HFS as of March 31, 2016 and December 31, 2015. The net v olume of Card Member receivables purchased during the three months ended March 31 , 2016 and 2015 was approximately $ 57 billion and $ 53 billio n, respectively. As of March 31 , 2016 and December 31, 2015 , Credco Receivables Corporation (CRC) owned approximately $ 4.4 billion and $ 4.1 billion, respectively, of participation interests in Card Member receivables purchased without recourse from RFC VIII. Card Member receivables as of March 31 , 2016 and December 31, 2015 consisted of: (Millions) 2016 2015 U.S. Consumer Services $ 3,541 $ 3,393 International Consumer and Network Services (a) 1,406 1,484 Global Commercial Services (b) 13,713 12,730 Card Member receivables (c) 18,660 17,607 Less: Reserve for losses 118 114 Card Member receivables, net (d) $ 18,542 $ 17,493 Comprised of International consumer card business. Comprised of Corporate and Small Business Services . N et of deferr ed discount revenue totaling $ 24 million and $ 22 million as of March 31 , 2016 and December 31, 2015 , r espectively. Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial. The net v olume of Card Member loans purchased in both the three months ended March 31 , 2016 and 2015 was $ 1.0 billion. Card Member loans as of March 31 , 2016 and December 31, 2015 consisted of : (Millions) 2016 2015 International Consumer and Network Services (a) $ 424 $ 435 Less: Reserve for losses 5 4 Card Member loans, net (b) $ 419 $ 431 Comprised of International consumer card business. Card 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 March 31 , 2016 and December 31, 2015 : 30-59 60-89 Days Days 90+ Days 2016 (Millions) Current Past Due Past Due Past Due Total Card Member Receivables: U.S. Consumer Services $ 3,516 $ 10 $ 6 $ 9 $ 3,541 International Consumer and Network Services 1,384 8 4 10 1,406 Global Commercial Services Global Small Business Services 1,510 6 3 7 1,526 Global Corporate Payments (a) (b) (b) (b) 88 12,187 Card Member Loans: International Consumer and Network Services $ 420 $ 1 $ 1 $ 2 $ 424 30-59 60-89 Days Days 90+ Days 2015 (Millions) Current Past Due Past Due Past Due Total Card Member Receivables: U.S. Consumer Services $ 3,371 $ 9 $ 4 $ 9 $ 3,393 International Consumer and Network Services 1,462 8 4 10 1,484 Global Commercial Services Global Small Business Services 1,380 5 3 6 1,394 Global Corporate Payments (a) (b) (b) (b) 93 11,336 Card Member Loans: International Consumer and Network Services $ 432 $ 1 $ 1 $ 1 $ 435 For Global Corporate Payments Card Member receivables , 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 t hat 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 three months ended March 31 : 2016 2015 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. Consumer Services 0.69 % 0.71 % 1.16 % 0.91 % International Consumer and Network Services 1.98 % 1.57 % 1.77 % 1.63 % Global Small Business Services 1.11 % 1.05 % 1.29 % 1.07 % Card Member Loans: International Consumer and Network Services 0.92 % 0.94 % 1.03 % 0.52 % 2016 2015 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 Corporate Payments 0.05 % 0.72 % 0.08 % 0.71 % Represents the amount of Card Member receivables or Card Member loans owned by Credco th at is 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 is 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 | 3 Months Ended |
Mar. 31, 2016 | |
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. This Note is presented excluding amounts associated with the Card Member receivables HFS as of March 31 , 2016 and 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 three months ended March 31 : (Millions) 2016 2015 Balance, January 1 $ 114 $ 94 Provisions 34 38 Other credits (a) 6 25 Net write-offs (b) (36) (42) Balance, March 31 $ 118 $ 115 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 $ 1.1 billion and $ 4.4 billion for the three months ended March 31 , 2016 and 2015 , respectively . Net of recoveries of $ 25 million and $ 26 million for the three months ended March 31 , 2016 and 2015 , respectively. Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31 : (Millions) 2016 2015 Balance, January 1 $ 4 $ 3 Provisions 2 2 Net write-offs (a) (1) (1) Balance, March 31 $ 5 $ 4 Net of recoveries of $ 0.2 million and $ 0.3 million for the three months ended March 31 , 2016 and 2015 , respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
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 s 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 ex posure to various market risks and, for that reason, are an integral component of Credco’s market risk ma nagement. Credco does not transact in de rivatives for trading purposes. In relation to Credco’s credit risk, under the terms of the derivative agreemen ts 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 Cre dco’s derivative counterparties as of March 31 , 2016 and December 31, 2015 , Credco does not have derivative positions that warrant credit valuation adjustments . The following table summarizes the total fair value, excluding interest acc ruals, of deri vative assets and liabilities as of March 31 , 2016 and December 31, 2015 : Other Assets Other Liabilities Fair Value Fair Value (Millions) 2016 2015 2016 2015 Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges $ 197 $ 64 $ ― $ 9 Foreign exchange contracts Net investment hedges 6 30 144 13 Total derivatives designated as hedging instruments 203 94 144 22 Derivatives not designated as hedging instruments: Foreign exchange contracts 19 62 54 33 Total derivatives, gross 222 156 198 55 Less: Cash collateral netting (a) (196) (53) ― ― Derivative asset and derivative liability netting (b) (22) (33) (22) (33) Total derivatives, net (c) $ 4 $ 70 $ 176 $ 22 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. Additionally, Credco posted $ 119 million and $ 128 million as of March 31 , 2016 and December 31, 2015 , respectively, as initial margin on its centrally cleared interest rat e swaps; such amounts are record ed within O ther assets on the 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 counterpar ty 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 presented within Other assets and Accrued interest and Other liabilities on the Consolidated Balance Sheets. A majority of Credco’s derivative asset s and liabilities as of March 31 , 2016 and December 31, 2015 are subject to master netting agreements with its derivative counterparties. Credco has no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets. Fair Value Hedges Credco 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 both March 31 , 2016 and December 31, 2015 , Credco hedged $ 15.9 billion 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 a ssociated with Credco’s fair value hedges of its fixed-rate long term debt for the three months ended March 31 : (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative Relationship Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 2016 2015 Interest rate contracts Other expenses $ 142 $ 48 Other expenses $ (146) $ (44) $ (4) $ 4 Credco also recognized a net reduction in interest expense on long-term debt of $ 34 million and $ 42 million for the three months ended March 31 , 2016 and 2015 , respectively , primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges. Net Investment Hedges The effective portion of the gain or (loss) on net investment hedges, net of taxes, recorded in Accumula ted Other Comprehensive Loss as part of the cumulative translation adjustment , was $ (51) million and $ 63 million for the three months ended March 31 , 2016 and 2015 , respectively, with any ineffective portion recognized in O ther expenses durin g the period of change . During the three months ended March 31, 2016 and 2015, Credco did not reclassify any amounts from Accumulated Other Comprehensive Loss to earnings as a component of Other expenses and no ineffectiveness was recognized in either period. Derivatives Not Designated as Hedges The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. The changes in the fair value of the derivatives and the related underlying foreign currency exposures total ed a net loss of $1 million and a net gain of $14 million for the three months ended March 31, 2016 and 2015, respectively, and are recognized in Other expenses. Credco previously disclosed in Note 4 to the Consolidated Financial Statements in the Quarterly R eport on Form 10-Q for the period ended March 31, 2015, a loss of $13 million related to derivatives not designated as hedges. This amount should have been disclosed as a gain of $258 million, which is the amount used to calculate the above referenced net gain of $14 million. This change to the previously disclo sed amount has no impact on the Consolidated Statements of Income and Retained Earnings, Balance Sheets or Cash Flows. |
Fair Values
Fair Values | 3 Months Ended |
Mar. 31, 2016 | |
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 under the fair valuation hierarchy as Level 2 , as of March 31 , 2016 and December 31, 2015 : (Millions) 2016 2015 Assets: Derivatives (a) $ 222 $ 156 Total assets 222 156 Liabilities: Derivatives (a) 198 55 Total liabilities $ 198 $ 55 Refer to Note 4 for the fair values of derivative assets and liabilities, on a further disaggregated basis. Financial Assets and Financial Liabilities Carried at Other Than Fair Value 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 March 31 , 2016 and December 31, 2015 . The fair values of these financial instruments are estimates based upon the market conditi ons and perceived risks as of March 31 , 2016 and December 31, 2015 , 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 presente d. Carrying Corresponding Fair Value Amount 2016 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value $ 20.0 $ 20.0 $ 0.2 (a) $ 19.8 $ ― Card Member receivables HFS (b) (b) ― (b) ― Financial assets carried at other than fair value Card Member loans, net 0.4 0.4 ― ― 0.4 Loans to affiliates and other 10.4 10.4 ― 7.4 3.0 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 6.6 6.6 ― 6.6 ― Financial liabilities carried at other than fair value Long-term debt $ 21.9 $ 21.9 $ ― $ 21.9 $ ― 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 $ 18.4 $ 18.4 $ 0.2 (a) $ 18.2 $ ― Card Member receivables HFS (b) (b) ― (b) ― Financial assets carried at other than fair value Card Member loans, net 0.4 0.4 ― ― 0.4 Loans to affiliates and other 14.3 14.3 ― 11.3 3.0 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 9.4 9.4 ― 9.4 ― Financial liabilities carried at other than fair value Long-term debt $ 21.7 $ 21.8 $ ― $ 21.8 $ ― Reflects cash and due from banks. Reflects carrying value and the associated fair value of Card Member receivables HFS of $24 million for both the periods presented, but does not include any fair value associated with Card Member account relationships. Nonrecurring Fair Value Measurements D uring the three months ended March 31 , 2016 and during the year ended December 31, 2015 , 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 | 3 Months Ended |
Mar. 31, 2016 | |
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. Total assets as of March 31 , 2016 and December 31, 2015 were $ 1.8 billion and $ 1.7 billion, respectively, the majority of which we re eliminated in consolidation. Total liabilities as of both March 31 , 2016 and December 31, 2015 were $ 1.7 billion . As of March 31 , 2016 and December 31, 2015 , $ 852 million and $ 809 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 | 3 Months Ended |
Mar. 31, 2016 | |
Changes In Accumulated Other Comprehensive Loss Income Disclosure [Abstract] | |
Changes In Accumulated Other Comprehensive Loss | 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 Foreign Currency Translation Adjustments for the three months ended March 31 , 2016 and 2015 were as follows: Foreign Currency Translation 2016 (Millions) , net of tax Adjustments Balances as of December 31, 2015 $ (1,156) Net translation gain of investments in foreign operations 104 Net losses related to hedges of investment in foreign operations (51) Net change in accumulated other comprehensive loss 53 Balances as of March 31, 2016 $ (1,103) Foreign Currency Translation 2015 (Millions) , net of tax Adjustments Balances as of December 31, 2014 $ (787) Net translation loss of investments in foreign operations (188) Net gains related to hedges of investment in foreign operations 63 Net change in accumulated other comprehensive loss (125) Balances as of March 31, 2015 $ (912) No amoun ts were reclassified out of Accumulated Other Comprehensive Loss into the C onsolidated Statements of Income and Retained Earnings for the three months ended March 31 , 2016 and 2015 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
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 certain years continue to be reviewed by the IRS. In addition, American Express is curren tly under examination by the IRS for the years 2008 through 2014 . Credco believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $ 6 million principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the attribution of taxable income to a particular jurisdiction or jurisdictions. Resolution of the pri or years’ items that comprise this amount could have an impact on the effective tax rate and on net income, either favorably (principally as a result of settlements that are less than the liability for unrecognized tax benefits) or unfavorably (if such set tlements exceed the liability for unrecognized tax benefits). The effective tax rat es were 10.5 percent and 2.9 percent for the three months ended March 31 , 2016 , and 2015 , respectively. The tax rates for both periods reflect 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 effective tax rate s for both periods refle ct the impact of certain prior years’ tax items . The tax rates in both periods reflect 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 component s of revenues and expenses that prevent s Credco from projecting a reliable estimate of full year pretax income. A discrete calculation of the provisi on for income taxes is calculated for each interim period. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of ass ets, liabilities, revenues and expenses. These accounting estimates reflect the best judgment of management, but actual results could differ. |
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 s and foreign exchange rate s, and are carried at fair value on the Consolidated Balance Sheets . |
Variable Interest Entity [Abstract] | |
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. |
Card Member Receivables and L17
Card Member Receivables and Loans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounts Receivable And Loans Tables [Abstract] | |
Card Member receivables detail | Card Member receivables as of March 31 , 2016 and December 31, 2015 consisted of: (Millions) 2016 2015 U.S. Consumer Services $ 3,541 $ 3,393 International Consumer and Network Services (a) 1,406 1,484 Global Commercial Services (b) 13,713 12,730 Card Member receivables (c) 18,660 17,607 Less: Reserve for losses 118 114 Card Member receivables, net (d) $ 18,542 $ 17,493 Comprised of International consumer card business. Comprised of Corporate and Small Business Services . N et of deferr ed discount revenue totaling $ 24 million and $ 22 million as of March 31 , 2016 and December 31, 2015 , r espectively. Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial. |
Card Member loans detail | Card Member loans as of March 31 , 2016 and December 31, 2015 consisted of : (Millions) 2016 2015 International Consumer and Network Services (a) $ 424 $ 435 Less: Reserve for losses 5 4 Card Member loans, net (b) $ 419 $ 431 Comprised of International consumer card business. Card 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 March 31 , 2016 and December 31, 2015 : 30-59 60-89 Days Days 90+ Days 2016 (Millions) Current Past Due Past Due Past Due Total Card Member Receivables: U.S. Consumer Services $ 3,516 $ 10 $ 6 $ 9 $ 3,541 International Consumer and Network Services 1,384 8 4 10 1,406 Global Commercial Services Global Small Business Services 1,510 6 3 7 1,526 Global Corporate Payments (a) (b) (b) (b) 88 12,187 Card Member Loans: International Consumer and Network Services $ 420 $ 1 $ 1 $ 2 $ 424 30-59 60-89 Days Days 90+ Days 2015 (Millions) Current Past Due Past Due Past Due Total Card Member Receivables: U.S. Consumer Services $ 3,371 $ 9 $ 4 $ 9 $ 3,393 International Consumer and Network Services 1,462 8 4 10 1,484 Global Commercial Services Global Small Business Services 1,380 5 3 6 1,394 Global Corporate Payments (a) (b) (b) (b) 93 11,336 Card Member Loans: International Consumer and Network Services $ 432 $ 1 $ 1 $ 1 $ 435 For Global Corporate Payments Card Member receivables , 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 t hat 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 three months ended March 31 : 2016 2015 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. Consumer Services 0.69 % 0.71 % 1.16 % 0.91 % International Consumer and Network Services 1.98 % 1.57 % 1.77 % 1.63 % Global Small Business Services 1.11 % 1.05 % 1.29 % 1.07 % Card Member Loans: International Consumer and Network Services 0.92 % 0.94 % 1.03 % 0.52 % 2016 2015 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 Corporate Payments 0.05 % 0.72 % 0.08 % 0.71 % Represents the amount of Card Member receivables or Card Member loans owned by Credco th at is 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 is 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) | 3 Months Ended |
Mar. 31, 2016 | |
Reserves For Losses Tables [Abstract] | |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31 : (Millions) 2016 2015 Balance, January 1 $ 114 $ 94 Provisions 34 38 Other credits (a) 6 25 Net write-offs (b) (36) (42) Balance, March 31 $ 118 $ 115 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 $ 1.1 billion and $ 4.4 billion for the three months ended March 31 , 2016 and 2015 , respectively . Net of recoveries of $ 25 million and $ 26 million for the three months ended March 31 , 2016 and 2015 , respectively. |
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31 : (Millions) 2016 2015 Balance, January 1 $ 4 $ 3 Provisions 2 2 Net write-offs (a) (1) (1) Balance, March 31 $ 5 $ 4 Net of recoveries of $ 0.2 million and $ 0.3 million for the three months ended March 31 , 2016 and 2015 , respectively. |
Derivatives and Hedging Activ19
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 deri vative assets and liabilities as of March 31 , 2016 and December 31, 2015 : Other Assets Other Liabilities Fair Value Fair Value (Millions) 2016 2015 2016 2015 Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges $ 197 $ 64 $ ― $ 9 Foreign exchange contracts Net investment hedges 6 30 144 13 Total derivatives designated as hedging instruments 203 94 144 22 Derivatives not designated as hedging instruments: Foreign exchange contracts 19 62 54 33 Total derivatives, gross 222 156 198 55 Less: Cash collateral netting (a) (196) (53) ― ― Derivative asset and derivative liability netting (b) (22) (33) (22) (33) Total derivatives, net (c) $ 4 $ 70 $ 176 $ 22 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. Additionally, Credco posted $ 119 million and $ 128 million as of March 31 , 2016 and December 31, 2015 , respectively, as initial margin on its centrally cleared interest rat e swaps; such amounts are record ed within O ther assets on the 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 counterpar ty 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 presented within Other assets and Accrued interest and Other liabilities on the 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 a ssociated with Credco’s fair value hedges of its fixed-rate long term debt for the three months ended March 31 : (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative Relationship Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 2016 2015 Interest rate contracts Other expenses $ 142 $ 48 Other expenses $ (146) $ (44) $ (4) $ 4 |
Fair Values (Tables)
Fair Values (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 under the fair valuation hierarchy as Level 2 , as of March 31 , 2016 and December 31, 2015 : (Millions) 2016 2015 Assets: Derivatives (a) $ 222 $ 156 Total assets 222 156 Liabilities: Derivatives (a) 198 55 Total liabilities $ 198 $ 55 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 March 31 , 2016 and December 31, 2015 . Carrying Corresponding Fair Value Amount 2016 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value $ 20.0 $ 20.0 $ 0.2 (a) $ 19.8 $ ― Card Member receivables HFS (b) (b) ― (b) ― Financial assets carried at other than fair value Card Member loans, net 0.4 0.4 ― ― 0.4 Loans to affiliates and other 10.4 10.4 ― 7.4 3.0 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 6.6 6.6 ― 6.6 ― Financial liabilities carried at other than fair value Long-term debt $ 21.9 $ 21.9 $ ― $ 21.9 $ ― 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 $ 18.4 $ 18.4 $ 0.2 (a) $ 18.2 $ ― Card Member receivables HFS (b) (b) ― (b) ― Financial assets carried at other than fair value Card Member loans, net 0.4 0.4 ― ― 0.4 Loans to affiliates and other 14.3 14.3 ― 11.3 3.0 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 9.4 9.4 ― 9.4 ― Financial liabilities carried at other than fair value Long-term debt $ 21.7 $ 21.8 $ ― $ 21.8 $ ― Reflects cash and due from banks. Reflects carrying value and the associated fair value of Card Member receivables HFS of $24 million for both the periods presented, but does not include any fair value associated with Card Member account relationships. |
Changes in Accumulated Other 21
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of comprehensive income (loss), net of tax | Changes in Foreign Currency Translation Adjustments for the three months ended March 31 , 2016 and 2015 were as follows: Foreign Currency Translation 2016 (Millions) , net of tax Adjustments Balances as of December 31, 2015 $ (1,156) Net translation gain of investments in foreign operations 104 Net losses related to hedges of investment in foreign operations (51) Net change in accumulated other comprehensive loss 53 Balances as of March 31, 2016 $ (1,103) Foreign Currency Translation 2015 (Millions) , net of tax Adjustments Balances as of December 31, 2014 $ (787) Net translation loss of investments in foreign operations (188) Net gains related to hedges of investment in foreign operations 63 Net change in accumulated other comprehensive loss (125) Balances as of March 31, 2015 $ (912) |
Card Member Receivables and L22
Card Member Receivables and Loans (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable [Abstract] | ||||
Card Member receivables | $ 18,660 | $ 17,607 | ||
Less: Reserve for losses | 118 | 114 | $ 115 | $ 94 |
Card Member receivables, net | 18,542 | 17,493 | ||
U.S. Consumer Services [Member] | ||||
Accounts Receivable [Abstract] | ||||
Card Member receivables | 3,541 | 3,393 | ||
Global Commercial Services [Member] | ||||
Accounts Receivable [Abstract] | ||||
Card Member receivables | 13,713 | 12,730 | ||
International Consumer and Network Services [Member] | ||||
Accounts Receivable [Abstract] | ||||
Card Member receivables | $ 1,406 | $ 1,484 |
Card Member Receivables and L23
Card Member Receivables and Loans (Details 1) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Card Member loans | ||||
Less: Reserve for losses | $ 5 | $ 4 | $ 4 | $ 3 |
Card Member loans, less reserves | 419 | 431 | ||
International Consumer and Network Services [Member] | ||||
Card Member loans | ||||
Card Member loans | $ 424 | $ 435 |
Card Member Receivables and L24
Card Member Receivables and Loans (Details 2) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
U.S. Consumer Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | $ 3,516 | $ 3,371 |
Total aging | 3,541 | 3,393 |
U.S. Consumer Services [Member] | Card Member Receivables [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 10 | 9 |
U.S. Consumer Services [Member] | Card Member Receivables [Member] | 60 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 6 | 4 |
U.S. Consumer Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 9 | 9 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 1,384 | 1,462 |
Total aging | 1,406 | 1,484 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 8 | 8 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | 60 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 4 | 4 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 10 | 10 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 420 | 432 |
Total aging | 424 | 435 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 1 | 1 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | 60 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 1 | 1 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 2 | 1 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total aging | 12,187 | 11,336 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 88 | 93 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 1,510 | 1,380 |
Total aging | 1,526 | 1,394 |
Global Small Business Services [Member] | Card Member Receivables [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 6 | 5 |
Global Small Business Services [Member] | Card Member Receivables [Member] | 60 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | 3 | 3 |
Global Small Business Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Period past due | $ 7 | $ 6 |
Card Member Receivables and L25
Card Member Receivables and Loans (Details 3) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
U.S. Consumer Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Write-off Rate | 0.69% | 1.16% |
30+ Days Past Due as a % of Total | 0.71% | 0.91% |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Write-off Rate | 1.98% | 1.77% |
30+ Days Past Due as a % of Total | 1.57% | 1.63% |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Write-off Rate | 0.92% | 1.03% |
30+ Days Past Due as a % of Total | 0.94% | 0.52% |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Loss Ratio as a % of Charge Volume | 0.05% | 0.08% |
90+ Days Past Billing as a % of Receivables | 0.72% | 0.71% |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Receivables and Loans | ||
Net Write-off Rate | 1.11% | 1.29% |
30+ Days Past Due as a % of Total | 1.05% | 1.07% |
Card Member Receivables and L26
Card Member Receivables and Loans (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net volume of Card Member receivables purchased | $ 57,000 | $ 53,000 | |
Net volume of Card Member loans purchased | 1,000 | $ 1,000 | |
Deferred discount revenue on Card Member receivable | 24 | $ 22 | |
RFC VIII [Member] | |||
Related Party Transaction [Line Items] | |||
Participation Interests In Card Member Receivables Purchased | $ 4,400 | $ 4,100 |
Reserves (Details)
Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in the Card Member receivable reserve for losses | ||
Balance, January 1 | $ 114 | $ 94 |
Provisions | 34 | 38 |
Other credits | 6 | 25 |
Net write-offs | (36) | (42) |
Balance, March 31 | $ 118 | $ 115 |
Reserves (Details 1)
Reserves (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in the Card Member loans reserve for losses | ||
Balance, January 1 | $ 4 | $ 3 |
Provisions | 2 | 2 |
Net write-offs | (1) | (1) |
Balance, March 31 | $ 5 | $ 4 |
Reserves (Details Textuals)
Reserves (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reserves For Losses (Textuals) [Abstract] | ||
Participation interest in Card Member receivables purchased from affiliates | $ 1,100 | $ 4,400 |
Recoveries, Card Member receivables | 25 | 26 |
Recoveries, Card Member loans | $ 0.2 | $ 0.3 |
Derivatives and Hedging Activ30
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | $ 222 | $ 156 |
Cash collateral netting | (196) | (53) |
Derivative asset and liability netting | (22) | (33) |
Total derivatives assets,net | 4 | 70 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 203 | 94 |
Other Assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 19 | 62 |
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 | 197 | 64 |
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 | 6 | 30 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liability | 198 | 55 |
Cash collateral netting | 0 | 0 |
Derivative asset and liability netting | (22) | (33) |
Total derivatives liabilities, net | 176 | 22 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liability | 144 | 22 |
Other Liabilities [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liability | 54 | 33 |
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 liability | 0 | 9 |
Other Liabilities [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 | $ 144 | $ 13 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative contract | $ 142 | $ 48 |
Hedged item | (146) | (44) |
Net hedge ineffectiveness | $ (4) | $ 4 |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivatives And Hedging Activities Textuals [Abstract] | |||
Net reduction in interest expense | $ 34 | $ 42 | |
Derivative [Line Items] | |||
Ineffectiveness reclassified from AOCI into income | 0 | 0 | |
Margin on interest rate swap not netted | 119 | $ 128 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 258 | ||
Fair Value Hedging [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 15,900 | 15,900 | |
Net Investment Hedging [Member] | |||
Derivative [Line Items] | |||
Effection portion of gain (loss) on hedges | (51) | 63 | |
Credit Valuation Adjustment [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 0 | 0 | |
Other expense [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) in Changes of Fair Value of Derivatives not designated as hedges | (1) | $ 14 | |
None Sold or Repledged [Member] | |||
Offsetting Assets [Line Items] | |||
Securities received as collateral | 0 | 0 | |
Risk Exposure Low [Member] | |||
Offsetting Assets [Line Items] | |||
Total derivatives assets,net | 0 | 0 | |
Individually Significant Counterparties [Member] | |||
Offsetting Assets [Line Items] | |||
Total derivatives assets,net | $ 0 | $ 0 |
Fair Value (Details)
Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets [Abstract] | ||
Derivatives | $ 222 | $ 156 |
Total assets | 222 | 156 |
Liabilities [Abstract] | ||
Derivatives | 198 | 55 |
Total liabilities | $ 198 | $ 55 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Financial Assets Textuals [Abstract] | ||
Card Member receivables HFS | $ 24 | $ 24 |
Financial assets carried at other than fair value [Abstract] | ||
Card Member loans, less reserves | 419 | 431 |
Loans to affiliates and other | 10,393 | 14,262 |
Financial liabilities carried at other than fair value [Abstract] | ||
Long-term Debt | 21,921 | 21,725 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Financial assets for which carrying values equal or approximate fair value | 20,000 | 18,400 |
Financial Assets Textuals [Abstract] | ||
Card Member receivables HFS | 24 | 24 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 6,600 | 9,400 |
Level 2 [Member] | ||
Financial Assets: | ||
Financial assets for which carrying values equal or approximate fair value | 19,800 | 18,200 |
Financial Assets Textuals [Abstract] | ||
Card Member receivables HFS | 24 | 24 |
Financial assets carried at other than fair value [Abstract] | ||
Card Member loans, less reserves | 0 | 0 |
Loans to affiliates and other | 7,400 | 11,300 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 6,600 | 9,400 |
Financial liabilities carried at other than fair value [Abstract] | ||
Long-term Debt | 21,900 | 21,800 |
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 | 3,000 | 3,000 |
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 | 20,000 | 18,400 |
Financial Assets Textuals [Abstract] | ||
Card Member receivables HFS | 24 | 24 |
Financial assets carried at other than fair value [Abstract] | ||
Card Member loans, less reserves | 400 | 400 |
Loans to affiliates and other | 10,400 | 14,300 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 6,600 | 9,400 |
Financial liabilities carried at other than fair value [Abstract] | ||
Long-term Debt | 21,900 | 21,800 |
FairValueInputsLevel1Member | ||
Financial Assets: | ||
Financial assets for which carrying values equal or approximate fair value | $ 200 | $ 200 |
Fair Value (Details Textuals)
Fair Value (Details Textuals) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 30,936 | $ 33,285 |
Total liabilities | 28,713 | 31,166 |
Variable Interest Entity, Primary Beneficiary [Member] | American Express Canada Credit Corporation Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 1,800 | 1,700 |
Total liabilities | 1,700 | 1,700 |
Liabilities eliminated in consolidation | $ 852 | $ 809 |
Changes In Accumulated Other 37
Changes In Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in other comprehensive income | ||
Balances as of start of period | $ (1,156) | |
Balances as of end of period | (1,103) | |
Foreign Currency Translation Adjustment [Member] | ||
Changes in other comprehensive income | ||
Balances as of start of period | (1,156) | $ (787) |
Net translation (loss) gain of investment in foreign operations | 104 | (188) |
Net gains (losses) related to hedges of investment in foreign operations | (51) | 63 |
Net change in accumulated other comprehensive loss | 53 | (125) |
Balances as of end of period | $ (1,103) | $ (912) |
Changes in Accumulated Other 38
Changes in Accumulated Other Comprehensive (Loss) Income (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Loss Income (Textuals) [Abstract] | ||
Amount of gain loss reclassified from accumulated other comprehensive income to income | $ 0 | $ 0 |
Income Tax (Details Textuals)
Income Tax (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes (Textuals) [Abstract] | ||
Possible decrease in unrecognized tax benefits as a result of potential resolutions of prior years' tax | $ 6 | |
Effective tax rate | 10.50% | 2.90% |
U.S. statutory federal income tax rate | 35.00% | |
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 | 2,014 |