Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 01, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 1-7657 | ||
Entity Registrant Name | American Express Co | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-4922250 | ||
Entity Address, Address Line One | 200 Vesey Street | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10285 | ||
City Area Code | 212 | ||
Local Phone Number | 640-2000 | ||
Title of 12(b) Security | Common Shares (par value $0.20 per Share) | ||
Trading Symbol | AXP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 128.1 | ||
Entity Common Stock, Shares Outstanding | 723,869,787 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part III: Portions of Registrant’s Proxy Statement to be filed with the Securities and Exchange Commission in connection with the Annual Meeting of Shareholders to be held on May 6, 2024. | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000004962 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | New York, New York |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Non-interest revenues | ||||
Total non-interest revenues | $ 47,381 | $ 42,967 | $ 34,630 | |
Interest income | ||||
Interest on loans | 17,697 | 11,967 | 8,850 | |
Interest and dividends on investment securities | 128 | 96 | 83 | |
Deposits with banks and other | 2,158 | 595 | 100 | |
Total interest income | 19,983 | 12,658 | 9,033 | |
Interest expense | ||||
Deposits | 4,865 | 1,527 | 458 | |
Long-term debt and other | 1,984 | 1,236 | 825 | |
Total interest expense | 6,849 | 2,763 | 1,283 | |
Net interest income | 13,134 | 9,895 | 7,750 | |
Total revenues net of interest expense | 60,515 | 52,862 | 42,380 | |
Provisions for credit losses | ||||
Provisions for credit losses | 4,923 | 2,182 | (1,419) | |
Total revenues net of interest expense after provisions for credit losses | 55,592 | 50,680 | 43,799 | |
Expenses | ||||
Card Member rewards | 15,367 | 14,002 | 11,007 | |
Business development | 5,657 | 4,943 | 3,762 | |
Card Member services | 3,968 | 2,959 | 1,993 | |
Marketing | 5,213 | 5,458 | 5,291 | |
Salaries and employee benefits | 8,067 | 7,252 | 6,240 | |
Other, net | 6,807 | 6,481 | 4,817 | |
Total expenses | 45,079 | 41,095 | 33,110 | |
Pretax income | 10,513 | 9,585 | 10,689 | |
Income tax provision | 2,139 | 2,071 | 2,629 | |
Net income | $ 8,374 | $ 7,514 | $ 8,060 | |
Earnings per Common Share | ||||
Basic (in dollars per share) | [1] | $ 11.23 | $ 9.86 | $ 10.04 |
Diluted (in dollars per share) | [1] | $ 11.21 | $ 9.85 | $ 10.02 |
Average common shares outstanding for earnings per common share: | ||||
Basic (in shares) | 735 | 751 | 789 | |
Diluted (in shares) | 736 | 752 | 790 | |
Card Member receivables | ||||
Provisions for credit losses | ||||
Provisions for credit losses | $ 880 | $ 627 | $ (73) | |
Card Member loans | ||||
Provisions for credit losses | ||||
Provisions for credit losses | 3,839 | 1,514 | (1,155) | |
Other | ||||
Provisions for credit losses | ||||
Provisions for credit losses | 204 | 41 | (191) | |
Discount revenue | ||||
Non-interest revenues | ||||
Total non-interest revenues | 33,416 | 30,739 | 24,563 | |
Net card fees | ||||
Non-interest revenues | ||||
Total non-interest revenues | 7,255 | 6,070 | 5,195 | |
Service fees and other revenue | ||||
Non-interest revenues | ||||
Total non-interest revenues | 5,005 | 4,521 | 3,316 | |
Processed revenue | ||||
Non-interest revenues | ||||
Total non-interest revenues | $ 1,705 | $ 1,637 | $ 1,556 | |
[1] Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Earnings allocated to participating share awards | $ 64 | $ 57 | $ 56 |
Dividends on preferred Stock | 58 | 57 | 71 |
Equity adjustments in connection with redemption of Preferred Shares | $ 0 | $ 0 | $ 16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 8,374 | $ 7,514 | $ 8,060 |
Other comprehensive income (loss): | |||
Net unrealized debt securities gains (losses), net of tax | 50 | (87) | (42) |
Foreign currency translation adjustments, net of hedges and tax | 51 | (230) | (163) |
Net unrealized pension and other postretirement benefits, net of tax | 37 | 52 | 155 |
Other comprehensive income (loss) | 138 | (265) | (50) |
Comprehensive income | $ 8,512 | $ 7,249 | $ 8,010 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents | ||
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ 7,118 | $ 5,510 |
Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | 28,097 |
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | 307 |
Total cash and cash equivalents | 46,596 | 33,914 |
Investment securities | 2,186 | 4,578 |
Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | 5,215 |
Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | 17,689 |
Total assets | 261,108 | 228,354 |
Liabilities | ||
Customer deposits | 129,144 | 110,239 |
Accounts payable | 13,109 | 12,133 |
Short-term borrowings | 1,293 | 1,348 |
Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | 42,573 |
Other liabilities | 41,639 | 37,350 |
Total liabilities | 233,051 | 203,643 |
Contingencies and Commitments (Note 12) | ||
Shareholders’ Equity | ||
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | 0 | 0 |
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | 149 |
Additional paid-in capital | 11,372 | 11,493 |
Retained earnings | 19,612 | 16,279 |
Accumulated other comprehensive income (loss) | (3,072) | (3,210) |
Total shareholders’ equity | 28,057 | 24,711 |
Total liabilities and shareholders’ equity | 261,108 | 228,354 |
Card Member receivables | ||
Cash and cash equivalents | ||
Financing receivables, net | 60,237 | 57,384 |
Card Member loans | ||
Cash and cash equivalents | ||
Financing receivables, net | 120,877 | 104,217 |
Other loans | ||
Cash and cash equivalents | ||
Financing receivables, net | $ 6,960 | $ 5,357 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents | ||
Restricted cash | $ 514 | $ 544 |
Securities purchased under resale agreements | 0 | 318 |
Premises and equipment, accumulated depreciation | 9,911 | 9,850 |
Other assets, reserves for credit losses | 27 | 22 |
Liabilities | ||
Long-term debt | $ 47,866 | $ 42,573 |
Shareholders’ Equity | ||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 |
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred shares, outstanding (in shares) | 1,600 | 1,600 |
Preferred shares, issued (in shares) | 1,600 | 1,600 |
Common shares, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common shares, authorized (in shares) | 3,600,000,000 | 3,600,000,000 |
Common shares, issued (in shares) | 723,000,000 | 743,000,000 |
Common shares, outstanding (in shares) | 723,000,000 | 743,000,000 |
Card Member receivables | ||
Cash and cash equivalents | ||
Financing receivables, gross | $ 60,411 | $ 57,613 |
Financing receivables, reserves for credit losses | 174 | 229 |
Card Member loans | ||
Cash and cash equivalents | ||
Financing receivables, gross | 125,995 | 107,964 |
Financing receivables, reserves for credit losses | 5,118 | 3,747 |
Other loans | ||
Cash and cash equivalents | ||
Financing receivables, reserves for credit losses | 126 | 59 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | ||
Restricted cash | 0 | 5 |
Restricted investments | 66 | 54 |
Liabilities | ||
Long-term debt | 13,426 | 12,662 |
Variable Interest Entity, Primary Beneficiary | Card Member receivables | ||
Cash and cash equivalents | ||
Financing receivables, gross | 4,587 | 5,193 |
Variable Interest Entity, Primary Beneficiary | Card Member loans | ||
Cash and cash equivalents | ||
Financing receivables, gross | $ 28,590 | $ 28,461 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash Flows from Operating Activities | ||||
Net income | $ 8,374 | $ 7,514 | $ 8,060 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provisions for credit losses | 4,923 | 2,182 | (1,419) | |
Depreciation and amortization | 1,651 | 1,626 | 1,695 | |
Stock-based compensation | 450 | 375 | 330 | |
Deferred taxes | (1,329) | (1,189) | 294 | |
Other items | [1] | 664 | 365 | (772) |
Originations of loans held-for-sale | (54) | (277) | 0 | |
Proceeds from sales of loans held-for-sale | 59 | 277 | 0 | |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||||
Other assets | (1,244) | 1,391 | 1,068 | |
Accounts payable & other liabilities | 5,065 | 8,815 | 5,389 | |
Net cash provided by operating activities | 18,559 | 21,079 | 14,645 | |
Cash Flows from Investing Activities | ||||
Sale of investments | 2 | 26 | 62 | |
Maturities and redemptions of investments | 3,888 | 1,892 | 20,032 | |
Purchase of investments | (1,572) | (4,175) | (1,517) | |
Net increase in Card Member loans and receivables, and other loans | [2] | (25,124) | (29,562) | (27,557) |
Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | (1,855) | (1,550) | |
Net (Acquisitions)/dispositions, net of cash acquired | (64) | (15) | 1 | |
Net cash used in investing activities | (24,433) | (33,689) | (10,529) | |
Cash Flows from Financing Activities | ||||
Net increase (decrease) in customer deposits | 18,915 | 25,902 | (2,468) | |
Net (decrease) increase in short-term borrowings | [2] | (105) | (706) | 461 |
Proceeds from long-term debt | 15,674 | 23,230 | 7,788 | |
Payments of long-term debt | (10,703) | (18,906) | (11,662) | |
Issuance of American Express preferred shares | 0 | 0 | 1,584 | |
Redemption of American Express preferred shares | 0 | 0 | (1,600) | |
Issuance of American Express common shares | 28 | 56 | 64 | |
Repurchase of American Express common shares and other | (3,650) | (3,502) | (7,652) | |
Dividends paid | (1,780) | (1,565) | (1,448) | |
Net cash provided by (used in) financing activities | 18,379 | 24,509 | (14,933) | |
Effect of foreign currency exchange rates on cash and cash equivalents | 177 | (13) | (120) | |
Net increase (decrease) in cash and cash equivalents | 12,682 | 11,886 | (10,937) | |
Cash and cash equivalents at beginning of year | 33,914 | 22,028 | 32,965 | |
Cash and cash equivalents at end of year | $ 46,596 | $ 33,914 | $ 22,028 | |
[1] Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. Excludes an increase of $117 million related to non-cash activity during 2023. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Sale of premises and equipment | $ 2 | $ 1 | $ 88 |
Increase in short-term borrowings, non-cash | 117 | ||
Increase in Card Member loans and receivables, and other loans, non-cash | 117 | ||
Net income taxes paid | 3,300 | 3,000 | 1,600 |
Interest paid | $ 6,400 | $ 2,200 | $ 1,100 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Series B Preferred Stock | Series C Preferred Stock | Series D Preferred Stock | Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained Earnings Series B Preferred Stock | Retained Earnings Series C Preferred Stock | Retained Earnings Series D Preferred Stock |
Beginning Balance at Dec. 31, 2020 | $ 22,984 | $ 0 | $ 161 | $ 11,881 | $ (2,895) | $ 13,837 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 8,060 | 8,060 | ||||||||||
Other comprehensive income (loss) | (50) | (50) | ||||||||||
Preferred shares issued | 1,584 | 1,584 | ||||||||||
Redemption of preferred shares | (1,600) | (1,584) | (16) | |||||||||
Repurchase of common shares | (7,598) | (9) | (631) | (6,958) | ||||||||
Other changes, primarily employee plans | 227 | 1 | 245 | (19) | ||||||||
Cash dividends declared preferred | $ (27) | $ (23) | $ (21) | $ (27) | $ (23) | $ (21) | ||||||
Cash dividends declared common | (1,359) | (1,359) | ||||||||||
Ending Balance at Dec. 31, 2021 | 22,177 | 0 | 153 | 11,495 | (2,945) | 13,474 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 7,514 | 7,514 | ||||||||||
Other comprehensive income (loss) | (265) | (265) | ||||||||||
Repurchase of common shares | (3,332) | (4) | (302) | (3,026) | ||||||||
Other changes, primarily employee plans | 242 | 300 | (58) | |||||||||
Cash dividends declared preferred | (57) | (57) | ||||||||||
Cash dividends declared common | (1,568) | (1,568) | ||||||||||
Ending Balance at Dec. 31, 2022 | 24,711 | 0 | 149 | 11,493 | (3,210) | 16,279 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 8,374 | 8,374 | ||||||||||
Other comprehensive income (loss) | 138 | 138 | ||||||||||
Repurchase of common shares | (3,519) | (4) | (334) | (3,181) | ||||||||
Other changes, primarily employee plans | 181 | 213 | (32) | |||||||||
Cash dividends declared preferred | $ (58) | $ (58) | ||||||||||
Cash dividends declared common | (1,770) | (1,770) | ||||||||||
Ending Balance at Dec. 31, 2023 | $ 28,057 | $ 0 | $ 145 | $ 11,372 | $ (3,072) | $ 19,612 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common stock, dividend per share (in dollars per share) | $ 2.40 | $ 2.08 | $ 1.72 |
Series B Preferred Stock | |||
Preferred stock, dividend per share (in dollars per share) | 36,419.41 | ||
Series C Preferred Stock | |||
Preferred stock, dividend per share (in dollars per share) | 26,317.47 | ||
Series D Preferred Stock | |||
Preferred stock, dividend per share (in dollars per share) | $ 35,993.05 | $ 35,993.05 | $ 13,213.89 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES THE C OMPANY We are a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Our various products and services are offered globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams and direct response advertising. Refer to Note 24 for additional discussion of the products and services that comprise each segment. Corporate functions and certain other businesses and operations are included in Corporate & Other. PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. We consolidate entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlling financial interest when we are able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, we are considered to hold a controlling financial interest when we are determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE. Entities in which our voting interest in common equity does not provide it with control, but allows us to exert significant influence over operating and financial decisions, are accounted for under the equity method. We also have investments in equity securities where our voting interest is below the level of significant influence, including investments that we make in non-public companies in the ordinary course of business. Such investments are initially recorded at cost and adjusted to fair value through earnings for observable price changes in orderly transactions for identical or similar instruments of the same company or if they are determined to be impaired. See Note 4 for the accounting policy for our marketable equity securities. FOREIGN CURRENCY Transactions conducted in currencies other than the applicable functional currency of an entity are converted to the functional currency at the exchange rate on the transaction date. At the period end, monetary assets and liabilities are remeasured to the functional currency using period end rates. The resulting transaction gains and losses are recorded in Other, net expenses in the Consolidated Statements of Income. For subsidiaries where the functional currency is not the U.S. dollar, the monetary assets and liabilities and results of operations are translated for consolidation purposes into U.S. dollars at period-end rates for monetary assets and liabilities and generally at average rates for results of operations. The resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member credit losses on loans and receivables, Membership Rewards liability, goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. INCOME STATEMENT Revenue is recognized when obligations under the terms of a contract with our customers are satisfied. We are not required to disclose revenue that is expected to be recognized in future periods related to contracts that have an original expected duration of one year or less and contracts with variable consideration (e.g., discount revenue). Non-interest revenue expected to be recognized in future periods related to all other contracts with customers is not material. Discount Revenue Discount revenue represents the amount we earn and retain from the merchant payable for facilitating transactions between Card Members and merchants on payment products issued by American Express. The amount of fees charged for accepting our cards as payment, or merchant discount, varies with, among other factors, the industry in which the merchant conducts business, the merchant’s overall American Express-related transaction volume, the method of payment, the settlement terms with the merchant, the method of submission of transactions and, in certain instances, the geographic scope of the card acceptance agreement between the merchant and us (e.g., local or global) and the transaction amount. Discount revenue is generally recorded at the time the Card Member transaction occurs. Card acceptance agreements, which include the agreed-upon terms for charging the merchant discount fee, vary in duration. Our contracts with small- and mid-sized merchants generally have no fixed contractual duration, while those with large merchants are generally for fixed periods, which typically range from three In cases where the merchant acquirer is a third party, we receive a network rate fee in our settlement with the merchant acquirer, which is negotiated between us and that merchant acquirer and is recorded as discount revenue at the time the Card Member transaction occurs. Net Card Fees Net card fees represent revenue earned from annual card membership fees, which vary based on the type of card and the number of cards for each account. These fees, net of acquisition costs and a reserve for projected refunds for Card Member cancellations, are deferred and recognized on a straight-line basis over the twelve-month card membership period as Net card fees in the Consolidated Statements of Income and are therefore more stable in relation to short term business or economic shifts. The unamortized net card fee balance is reported in Other liabilities on the Consolidated Balance Sheets. Service Fees and Other Revenue Service fees and other revenue includes service fees earned from merchants and other customers and travel commissions and fees, which are generally recognized in the period when the service is performed, and delinquency and foreign currency-related fees, which are primarily recognized in the period when they are charged to the Card Member. In addition, Service fees and other revenue includes income (losses) from our investments in which we have significant influence and therefore account for under the equity method. Refer to Note 18 for additional information. Processed Revenue Processed revenue primarily represents revenues related to network partnership agreements, comprising royalties, fees and amounts earned for facilitating transactions on cards issued by network partners. In our role as the operator of the American Express network, we settle with merchants and our third-party merchant acquirers on behalf of our network card issuing partners. The amount of fees charged for accepting American Express-branded cards is generally deducted from the payment to the merchant or third-party merchant acquirer and recorded as Processed revenue at the time the Card Member transaction occurs. Our network card issuing partners receive an issuer rate that is individually negotiated between that issuer and us and is recorded as contra-revenue within Processed revenue to the extent that there is revenue from the same customer, after which any additional issuer rate is recorded as expense in Business development. Processed revenue also includes fees related to alternative payment solutions, which are generally recognized when the service is performed. Contra-revenue Payments made pursuant to contractual arrangements with our merchants, network partners and other customers are classified as contra-revenue, except where we receive goods, services or other benefits for which the fair value is determinable and measurable, in which case they are recorded as expense. Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is paid, or written off. Interest and dividends on investment securities primarily relate to our performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it becomes likely that future interest payments will not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions and (ii) debt, which primarily relates to interest expense on our long-term debt and short-term borrowings, as well as the realized impact of derivatives used to hedge interest rate risk on our long-term debt. Card Member Rewards We issue credit, charge and debit cards that allow Card Members to participate in various rewards programs (e.g., Membership Rewards, cash back and cobrand). Rewards expense is recognized in the period Card Members earn rewards, generally by spending on their enrolled card products. For Membership Rewards and cash back, we record a liability that represents the rewards that are expected to be redeemed, as well as, for Membership Rewards, the estimated cost of points earned. For cobrand, we record a liability based primarily on rewards earned on Card Member spending on cobrand cards, and make associated payments to our cobrand partners. The partner is liable for providing rewards to the Card Member under the cobrand partner’s own loyalty program. Card Member rewards liabilities are impacted over time by enrollment levels, attrition, the volume of points earned and redeemed, and the associated redemption costs. Changes in the Card Member rewards liabilities during the period are taken as an increase or decrease to the Card Member rewards expense in the Consolidated Statements of Income. Business Development Business development expense includes payments to our cobrand partners, corporate client incentive payments earned on achievement of pre-set targets and certain payments to network partners. These costs are generally expensed as incurred. Card Member Services Card Member services expense represents costs incurred in providing our Card Members with various value-added benefits and services, which are generally expensed as incurred. Marketing Marketing expense includes costs incurred in the development and initial placement of advertising, which are expensed in the period in which the advertising first takes place. All other marketing expenses are generally expensed as incurred. BALANCE SHEET Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements, restricted cash, and other highly liquid investments with original maturities of 90 days or less. Restricted cash primarily represents amounts related to Card Member credit balances as well as upcoming debt maturities of consolidated VIEs. Goodwill Goodwill represents the excess of the acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. We allocate goodwill to our reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment, for which discrete financial information is regularly reviewed by the operating segment manager. Prior to completing the annual assessment of goodwill for impairment, we perform a recoverability test of certain long-lived assets. We have historically evaluated goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of our reporting units below its carrying value. In the fourth quarter of 2023, we changed our annual impairment assessment date to November 1 for all reporting units. The change in the annual testing date for goodwill impairment is considered a change in accounting principle, which we believe is preferable as the new date better aligns with our long-term planning and forecasting process. We have determined that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of each November 1 of the prior reporting periods without the use of hindsight. As such, we prospectively applied the change in annual goodwill impairment testing date beginning November 1, 2023. The change in assessment date did not delay, accelerate or avoid a potential impairment charge. We have the option to perform a qualitative assessment of goodwill impairment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Alternatively, we can perform a more detailed quantitative assessment of goodwill impairment. This qualitative assessment entails the evaluation of factors such as economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other company and reporting unit-specific events. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then perform the impairment evaluation using the quantitative assessment. The quantitative assessment compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds the reporting unit’s fair value, an impairment loss is recognized for the amount over and above the reporting unit’s fair value. When measuring the fair value of our reporting units in the quantitative assessment, we use widely accepted valuation techniques, applying a combination of the income approach (discounted cash flows) and market approach (market multiples). When preparing discounted cash flow models under the income approach, we use internal forecasts to estimate future cash flows expected to be generated by the reporting units. To discount these cash flows, we use the expected cost of equity, determined by using a capital asset pricing model. We believe the discount rates appropriately reflect the risks and uncertainties in the financial markets generally and specifically in our internally-developed forecasts. When using market multiples under the market approach, we apply comparable publicly traded companies’ multiples (e.g., earnings or revenues) to our reporting units’ operating results. During the year ended December 31, 2023, we performed assessments for each reporting unit in connection with our annual goodwill impairment evaluation as of both June 30, 2023 and November 1, 2023, in accordance with the change in goodwill impairment testing date. As of both testing dates, we determined that it was more likely than not that the fair values of each of our reporting units exceeded their carrying values and accordingly no impairment was recognized. In addition, during the year ended December 31, 2022, we performed a quantitative goodwill impairment assessment for those reporting units which were impacted by the realignment of our operating segments and concluded that their fair values exceeded their carrying values. Premises and Equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at the acquisition date. Certain costs associated with the acquisition or development of internal-use software are also capitalized and recorded in Premises and equipment. Once the specific software feature is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years. We review these assets for impairment using the same impairment methodology used for our intangible assets. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and range from 5 to 10 years. We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term. Leases We have operating leases worldwide for facilities and equipment, which, for those leases with terms greater than 12 months, are recorded as lease-related assets and liabilities. We do not separate lease and non-lease components. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs and lease incentives. Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. OTHER SIGNIFICANT ACCOUNTING POLICIES The following table identifies our other significant accounting policies, along with the related Note. Significant Accounting Policy Note Note Title Loans and Card Member Receivables Note 2 Loans and Card Member Receivables Reserves for Credit Losses Note 3 Reserves for Credit Losses Investment Securities Note 4 Investment Securities Asset Securitizations Note 5 Asset Securitizations Legal Contingencies Note 12 Contingencies and Commitments Derivative Financial Instruments and Hedging Activities Note 13 Derivatives and Hedging Activities Fair Value Measurements Note 14 Fair Values Guarantees Note 15 Guarantees Income Taxes Note 20 Income Taxes CLASSIFICATION OF VARIOUS ITEMS Certain reclassifications of prior period amounts have been made to conform to the current period presentation. RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS Effective January 1, 2023, we adopted new accounting guidance on troubled debt restructurings (TDR) and vintage disclosures on a prospective basis. The new guidance eliminated the existing TDR guidance for those entities that have adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, created a single loan modification accounting model and enhanced disclosure requirements for loan modifications and write-offs. The implementation did not have a material impact to our Consolidated Financial Statements. Refer to Note 2 for further information, including the enhanced disclosures. In March 2023, the Financial Accounting Standards Board issued updated accounting guidance to allow the proportional amortization method (PAM) to be applied to tax credit structures beyond low-income housing tax credit (LIHTC) investments. Having implemented PAM in relation to LIHTC investments in January 2021, we early adopted the updated guidance with respect to other qualifying investments in the fourth quarter of 2023. The impact of this change is immaterial to our Consolidated Financial Statements, therefore we implemented the updated guidance on a prospective basis. In November 2023, the Financial Accounting Standards Board issued updated accounting guidance for Segment Reporting, effective January 1, 2024, with early adoption permitted. The updated guidance requires enhanced disclosures for significant expenses by reportable operating segment. Significant expense categories and amounts are those regularly provided to the chief operating decision maker (CODM) and included in the measure of a segment’s profit or loss. The updated guidance will also require us to disclose the title and position of our CODM, including an explanation of how our CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. We plan to adopt the new standard for the annual reporting period beginning January 1, 2024, and for interim periods beginning January 1, 2025. The updated guidance is not expected to have a material impact to our Consolidated Financial Statements. In December 2023, the Financial Accounting Standards Board issued updated accounting guidance on Disclosures for Income Taxes, effective January 1, 2025, with early adoption permitted. The updated guidance requires additional disclosure and disaggregated information in the Income Tax Rate reconciliation using both percentages and reporting currency amounts, with additional qualitative explanations of individually significant reconciling items. The updated guidance also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by jurisdictional categories (federal (national), state and foreign). We are currently assessing the updated guidance, however it is not expected to have a material impact to our Consolidated Financial Statements. |
Loans and Card Member Receivabl
Loans and Card Member Receivables | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Card Member Receivables | LOANS AND CARD MEMBER RECEIVABLES Our lending and charge payment card products that we offer to consumer, small business and corporate customers result in the generation of Card Member loans and Card Member receivables. We also extend credit to customers through non-card financing products, resulting in Other loans. CARD MEMBER AND OTHER LOANS Card Member loans are generally recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolve-eligible transactions on our card products, as well as any finance charges and associated card-related fees. Card Members with outstanding revolving loans are required to make a minimum monthly payment, and the balances that Card Members choose to revolve are subject to finance charges. These loans have varying terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members and in accordance with applicable regulations and the respective product’s terms and conditions. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued interest and fees. Our policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that we believe will not be collected. Other loans are recorded at the time any extension of credit is provided to consumer and commercial customers for non-card financing products. These loans have a range of fixed terms such as interest rates, fees and repayment periods. Borrowers are typically required to make pre-established monthly payments over the term of the loan. Non-card financing products are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship. Other loans are presented on the Consolidated Balance Sheets net of reserves for credit losses and include principal and any related accrued interest and fees. Card Member and Other loans as of December 31, 2023 and 2022 consisted of: (Millions) 2023 2022 Consumer (a) $ 98,111 $ 84,964 Small Business 27,833 22,947 Corporate 51 53 Card Member loans 125,995 107,964 Less: Reserves for credit losses 5,118 3,747 Card Member loans, net $ 120,877 $ 104,217 Other loans, net (b) $ 6,960 $ 5,357 (a) Includes approximately $28.6 billion and $28.5 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2023 and 2022, respectively. (b) Other loans are presented net of reserves for credit losses of $126 million and $59 million as of December 31, 2023 and 2022, respectively. CARD MEMBER RECEIVABLES Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on our card products and card-related fees that need to be paid in full on or before the Card Member’s payment due date. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued fees. Card Member receivables as of December 31, 2023 and 2022 consisted of: (Millions) 2023 2022 Consumer $ 25,578 $ 22,885 Small Business 19,286 19,629 Corporate (a) 15,547 15,099 Card Member receivables 60,411 57,613 Less: Reserves for credit losses 174 229 Card Member receivables, net $ 60,237 $ 57,384 (a) Includes $4.6 billion and $5.2 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2023 and 2022, respectively. CARD MEMBER LOANS AND RECEIVABLES AGING Generally, a Card Member account is considered past due if payment due is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of December 31, 2023 and 2022: 2023 ( Millions ) Current 30-59 60-89 90+ Total 90+ Days Past Due and Still Accruing Interest (c) Non-Accruals (d) Card Member Loans: Consumer $ 96,779 $ 420 $ 298 $ 614 $ 98,111 $ 393 $ 344 Small Business 27,444 133 85 171 27,833 109 95 Corporate (a) (b) (b) (b) — 51 — — Card Member Receivables: Consumer 25,355 70 47 106 25,578 — — Small Business $ 19,020 $ 104 $ 62 $ 100 $ 19,286 $ — $ — Corporate (a) (b) (b) (b) $ 67 $ 15,547 $ — $ — 2022 ( Millions ) Current 30-59 60-89 90+ Total Card Member Loans: Consumer $ 84,102 $ 281 $ 198 $ 383 $ 84,964 Small Business 22,731 81 49 86 22,947 Corporate (a) (b) (b) (b) — 53 Card Member Receivables: Consumer 22,634 83 56 112 22,885 Small Business $ 19,330 $ 120 $ 69 110 19,629 Corporate (a) (b) (b) (b) $ 85 $ 15,099 (a) For corporate accounts, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b). (b) Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. (c) Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. (d) Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. CREDIT QUALITY INDICATORS FOR CARD MEMBER LOANS AND RECEIVABLES The following tables present the key credit quality indicators as of or for the years ended December 31: 2023 2022 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Principal Only (a) Principal, Interest & Fees (a) 30+ Card Member Loans: Consumer 1.8 % 2.2 % 1.4 % 0.9 % 1.2 % 1.0 % Small Business 1.7 % 1.9 % 1.4 % 0.7 % 0.8 % 0.9 % Card Member Receivables: Consumer 1.5 % 1.6 % 0.9 % 0.8 % 0.9 % 1.1 % Small Business 2.2 % 2.4 % 1.4 % 1.1 % 1.2 % 1.5 % Corporate (b) 0.6 % (c) (b) 0.4 % (c) (a) We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (b) Net write-off rate based on principal losses only is not available due to system constraints. (c) For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ days past billing as a % of total was 0.4% and 0.6% as of December 31, 2023 and 2022, respectively. Refer to Note 3 for additional indicators, including external qualitative factors, management considers in its evaluation process for reserves for credit losses. LOANS AND RECEIVABLES RESTRUCTURINGS FOR BORROWERS EXPERIENCING FINANCIAL DIFFICULTY Effective January 1, 2023, we prospectively adopted the new guidance that eliminated the recognition and measurement of TDRs. Following the adoption of this guidance, we evaluate all loans and receivables restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether such loan modification should be accounted for as a new loan or a continuation of the existing loan. Our loans and receivables restructurings for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan, which reflects the ongoing effort to support our customer and recover our investment in the existing loan. We offer several types of loans and receivables modification programs to customers experiencing financial difficulty. In such instances, we may modify loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (reducing interest rates to as low as zero percent, in which case the loan is characterized as non-accrual) and/or (ii) placing the customer on a fixed payment plan not to exceed 60 months. Upon entering the modification program, the customer’s ability to make future purchases is limited, canceled or, in certain cases, suspended until the customer successfully exits from the modification program. As of December 31, 2023, we had $83 million of unused credit available to customers with loans and receivables modified during the year ended December 31, 2023. In accordance with the modification agreement with the customer, loans and/or receivables may revert to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is either (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program. The following table provides information relating to loans and receivables modifications for borrowers experiencing financial difficulty during the year ended December 31, 2023: As of December 31, 2023 2023 ( Millions ) Account Balances ( Millions ) (a) % of Total Class of Weighted Average Interest Rate Reduction Weighted Average Payment Interest Rate Reduction Card Member Loans Consumer $ 1,572 1.6 % 16.4 % (b) Small Business 550 2.0 % 15.9 % (b) Corporate — — — (b) Term Extension Card Member Receivables Consumer 346 1.4 % (c) 27 Small Business 543 2.8 % (c) 28 Corporate 13 0.1 % (c) 9 Other Loans 23 0.3 % — 18 Interest Rate Reduction Other Loans $ 42 0.6 % 2.1 % 20 Total $ 3,089 (a) Represents the outstanding balances as of December 31, 2023 of all modifications undertaken in the last year for loans and receivables that remain in modification programs as of, or that defaulted on or before, December 31, 2023. The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance. (b) For Card Member loans, there have been no payment term extensions. (c) We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information with respect to loans and receivables modified on or after January 1, 2023 that subsequently defaulted in the period presented. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. As of December 31, 2023 Account Balance ( Millions ) (a) Interest Rate Reduction Term Extension Interest Rate Reduction and Term Extension Total Card Member Loans Consumer $ 53 (b) $ — $ 53 Small Business 20 (b) — 20 Corporate — (b) — — Card Member Receivables Consumer (c) 9 — 9 Small Business (c) 14 — 14 Corporate (c) — — — Other Loans — — 1 1 Total $ 73 $ 23 $ 1 $ 97 (a) Represents the outstanding balances as of December 31, 2023 of all modifications undertaken on or after January 1, 2023 and subsequently defaulted in the past year. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. (b) For Card Member loans, there have been no payment term extensions. (c) We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information relating to the performance of loans and receivables that were modified on or after January 1, 2023. As of December 31, 2023 Account Balances ( Millions ) (a) Current 30-89 Days Past Due 90+ Days Past Due Card Member Loans Consumer $ 1,433 $ 103 $ 36 Small Business 489 45 16 Corporate — — — Card Member Receivables: Consumer 314 25 7 Small Business 479 52 12 Corporate 11 2 — Other Loans 59 4 2 Total $ 2,785 $ 231 $ 73 (a) Represents the outstanding balances as of December 31, 2023 of all modifications undertaken on or after January 1, 2023 for loans and receivables that remain in modification programs as of, or that defaulted on or before, December 31, 2023. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables TROUBLED DEBT RESTRUCTURING DISCLOSURES PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE Prior to adoption of the new loan modification guidance, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. Loans that were classified as a TDR prior to adoption will continue to be accounted for under the historical TDR accounting until the loan is entirely paid off or written off. The following tables provide additional information with respect to our impaired loans and receivables as of December 31, 2022 and 2021: As of December 31, 2022 Accounts Classified as a TDR (c) 2022 (Millions) Over 90 days Past Due & Accruing Interest (a) Non- Accruals (b) In Program (d) Out of Program (e) Total Reserve for Credit Card Member Loans Consumer 252 155 781 1,098 2,286 335 Small Business 54 34 267 380 735 108 Corporate — — — — — — Card Member Receivables Consumer — — 257 179 436 20 Small Business — — 403 402 805 40 Corporate — — 6 7 13 1 Other Loans 3 2 19 2 26 — Total 309 $ 191 1,733 $ 2,068 $ 4,301 $ 504 As of December 31, 2021 Accounts Classified as a TDR (c) 2021 (Millions) Over 90 days Past Due & Accruing Interest (a) Non- Accruals (b) In Program (d) Out of Program (e) Total Reserve for Credit Card Member Loans Consumer 149 82 708 997 1,936 415 Small Business 19 14 176 332 541 132 Corporate — — — — — — Card Member Receivables Consumer — — 133 130 263 9 Small Business — — 247 297 544 39 Corporate — — 1 6 7 — Other Loans 1 — 67 2 70 1 Total 169 $ 96 1,332 $ 1,764 $ 3,361 $ 596 (a) Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR. (b) Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs. (c) Accounts classified as a TDR include $48 million and $41 million that were over 90 days past due and accruing interest and $17 million and $19 million that were non-accruals as of December 31, 2022 and 2021, respectively. (d) In Program TDRs include accounts that are currently enrolled in a modification program. (e) Out of Program TDRs include $1,922 million and $1,621 million of accounts that have successfully completed a modification program and $146 million and $143 million of accounts that were not in compliance with the terms of the modification programs as of December 31, 2022 and 2021, respectively. LOANS AND RECEIVABLES MODIFIED AS TDRs PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE The following tables provide additional information with respect to loans and receivables that were modified as TDRs during the years ended December 31, 2022 and 2021: 2022 Number of Accounts (Thousands) Account Balances (Millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 149 $ 1,002 14 (b) Card Member Receivables 27 900 (c) 20 Other Loans (d) 4 $ 8 2 17 Total 180 $ 1,910 2021 Number of Accounts (Thousands) Account Balances (Millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 112 $ 789 13 (b) Card Member Receivables 21 437 (c) 18 Other Loans (d) 4 $ 13 3 16 Total 137 $ 1,239 (a) Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance. (b) For Card Member loans, there have been no payment term extensions. (c) We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. (d) Other loans primarily represent consumer and commercial non-card financing products. LOANS AND RECEIVABLES MODIFIED AND SUBSEQUENTLY DEFAULTED PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. 2022 Number of Accounts (Thousands) Aggregated Outstanding Balances Upon Default (Millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 14 $ 81 Card Member Receivables 3 38 Other Loans (b) 1 1 Total 18 $ 120 2021 Number of Accounts (Thousands) Aggregated Outstanding Balances Upon Default (Millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 24 $ 174 Card Member Receivables 5 56 Other Loans (b) 3 9 Total 32 $ 239 (a) The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables. (b) Other loans primarily represent consumer and commercial non-card financing products. |
Reserves for Credit Losses
Reserves for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Reserves for Credit Losses | RESERVES FOR CREDIT LOSSES Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The CECL methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses . We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD) and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates. • PD models are used to estimate the likelihood an account will be written-off. • EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors. • Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions. We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions, even if such expected recoveries exceed expected losses. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses. This history includes the performance of loans and receivables modifications for borrowers experiencing financial difficulty, including their subsequent defaults. Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios each period and assigns probability weights to each scenario, generally with a consistent initial distribution. At times, due to macroeconomic uncertainty and volatility, management may apply judgment and assign different probability weights to scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models. We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions. Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually and incorporate a discounted cash flow model. See Note 2 for information on TDRs. Loans and receivable balances are written off when we consider amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due for pay in full or revolving loans and 120 days past due for term loans. Loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification. The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses: U.S. Unemployment Rate U.S. GDP Growth (Contraction) (a) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Fourth quarter of 2023 4% 3% - 8% 1% 6% - 0.2% First quarter of 2024 3% - 6% 3% - 8% 4% - (3)% 2% - 0.3% Fourth quarter of 2024 3% - 8% 3% - 7% 3% - 1% 3% - 2% Fourth quarter of 2025 3% - 7% 3% - 6% 2% 4% - 3% (a) Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates. CHANGES IN CARD MEMBER LOANS RESERVE FOR CREDIT LOSSES Card Member loans reserve for credit losses increased for the year ended December 31, 2023, primarily driven by an increase in loans outstanding and higher delinquencies. Card Member loans reserve for credit losses increased for the year ended December 31, 2022, primarily driven by an increase in loans outstanding, higher delinquencies and changes in macroeconomic forecasts at that time, partially offset by the release of COVID-19 pandemic-driven reserves. The following table presents changes in the Card Member loans reserve for credit losses for the years ended December 31: (Millions) 2023 2022 2021 Beginning Balance $ 3,747 $ 3,305 $ 5,344 Provisions (a) 3,839 1,514 (1,155) Net write-offs (b) Principal (2,043) (837) (672) Interest and fees (443) (229) (207) Other (c) 18 (6) (5) Ending Balance $ 5,118 $ 3,747 $ 3,305 (a) Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (b) Principal write-offs are presented less recoveries of $537 million, $539 million and $657 million for the years ended December 31, 2023, 2022 and 2021, respectively. Recoveries of interest and fees were not significant. (c) Primarily includes foreign currency translation adjustments of $18 million for the year ended December 31, 2023, and $(6) million for both the years ended December 31, 2022 and 2021. CHANGES IN CARD MEMBER RECEIVABLES RESERVE FOR CREDIT LOSSES Card Member receivables reserve for credit losses decreased for the year ended December 31, 2023, primarily driven by lower delinquencies, partially offset by an increase in receivables outstanding. Card Member receivables reserve for credit losses increased for the year ended December 31, 2022, primarily driven by higher delinquencies and an increase in receivables outstanding. The following table presents changes in the Card Member receivables reserve for credit losses for the years ended December 31: (Millions) 2023 2022 2021 Beginning Balance $ 229 $ 64 $ 267 Provisions (a) 880 627 (73) Net write-offs (b) (937) (462) (129) Other (c) 2 — (1) Ending Balance $ 174 $ 229 $ 64 (a) Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (b) Net write-offs are presented less recoveries of $297 million, $257 million and $378 million for the years ended December 31, 2023, 2022 and 2021, respectively. (c) Primarily includes foreign currency translation adjustments of $1 million, $2 million and $(1) million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. The methodology for estimating credit losses for available for sale debt securities requires us to estimate lifetime credit losses for all available-for-sale debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, we assess the security’s credit indicators, including credit ratings. If our assessment indicates that an estimated credit loss exists, we determine the portion of the unrealized loss attributable to credit deterioration and record a reserve for the estimated credit loss through the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. We had accrued interest on our available-for-sale debt securities totaling $5 million and $12 million as of December 31, 2023 and 2022, respectively, presented as Other assets on the Consolidated Balance Sheets. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense. Realized gains and losses are recognized upon disposition of the securities using the specific identification method and recorded in the Consolidated Statements of Income as Other, net expense. Refer to Note 14 for a description of our methodology for determining the fair value of investment securities. The following is a summary of investment securities as of December 31: 2023 2022 Description of Securities (Millions) Cost Gross Gross Estimated Cost Gross Gross Estimated Available-for-sale debt securities: State and municipal obligations $ 61 $ — $ (6) $ 55 $ 64 $ — $ (10) $ 54 U.S. Government agency obligations 4 — — 4 5 — — 5 U.S. Government treasury obligations 1,217 1 (12) 1,206 3,859 — (73) 3,786 Mortgage-backed securities (a) 12 — (1) 11 13 — — 13 Foreign government bonds and obligations 770 — — 770 633 — (1) 632 Other (b) 74 — — 74 47 — — 47 Equity securities (c)(d) 60 16 (10) 66 50 — (9) 41 Total $ 2,198 $ 17 $ (29) $ 2,186 $ 4,671 $ — $ (93) $ 4,578 (a) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (b) Represents investments in debt securities issued by Community Development Financial Institutions. (c) Equity securities comprise investments in common stock, exchange-traded funds and mutual funds. (d) During the third quarter of 2023, certain equity securities were reclassified from Other assets to Investment securities following the completion of transactions pursuant to which the issuers of the securities became public companies. The investments had a fair value of $24 million with an associated cost basis of $10 million as of December 31, 2023. The gross unrealized gain and loss amounts include net unrealized gains of $37 million that were recognized prior to such transactions. The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and 2022: 2023 2022 Less than 12 months 12 months or more Less than 12 months 12 months or more Description of Securities (Millions) Estimated Gross Unrealized Estimated Gross Unrealized Estimated Gross Unrealized Estimated Gross Unrealized State and municipal obligations $ — $ — $ 33 $ (6) $ 52 $ (10) $ — $ — U.S. Government treasury obligations — — 1,114 (12) 3,710 (72) 52 (1) Mortgage-backed securities — — 7 (1) — — — — Foreign government bonds and obligations — — — — 549 (1) — — Total $ — $ — $ 1,154 $ (19) $ 4,311 $ (83) $ 52 $ (1) The gross unrealized losses on our available-for-sale debt securities are primarily attributable to an increase in the current benchmark interest rate. Overall, for the available-for-sale debt securities in gross unrealized loss positions, (i) we do not intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losses and (iii) we expect that the contractual principal and interest will be received on the securities. We concluded that there was no credit loss attributable to the securities in an unrealized loss position for the periods presented. The following table summarizes the gross unrealized losses for available-for-sale debt securities by ratio of fair value to amortized cost as of December 31, 2023 and 2022: Less than 12 months 12 months or more Total Ratio of Fair Value to Amortized Cost (Dollars in millions) Number of Estimated Gross Number of Estimated Gross Number of Estimated Gross 2023: 90%–100% — $ — $ — 69 $ 1,140 $ (14) 69 $ 1,140 $ (14) Less than 90% — — — 2 14 (5) 2 14 (5) Total as of December 31, 2023 — $ — $ — 71 $ 1,154 $ (19) 71 $ 1,154 $ (19) 2022: 90%–100% 74 $ 4,287 $ (74) 3 $ 52 $ (1) 77 $ 4,339 $ (75) Less than 90% 14 24 (9) — — — 14 24 (9) Total as of December 31, 2022 88 $ 4,311 $ (83) 3 $ 52 $ (1) 91 $ 4,363 $ (84) Weighted average yields and contractual maturities for available-for-sale debt securities with stated maturities as of December 31, 2023 were as follows: (Millions) Due within 1 year Due after 1 year but within 5 years Due after 5 years but within 10 years Due after 10 years Total State and municipal obligations (a) $ — $ 1 $ 20 $ 34 $ 55 U.S. Government agency obligations (a) — — — 4 4 U.S. Government treasury obligations 1,010 194 2 — 1,206 Mortgage-backed securities (a)(b) — — — 11 11 Foreign government bonds and obligations 768 2 — — 770 Other (c) — 64 10 — 74 Total Estimated Fair Value $ 1,778 $ 261 $ 32 $ 49 $ 2,120 Total Cost $ 1,784 $ 265 $ 33 $ 56 $ 2,138 Weighted average yield (d) 4.68 % 3.17 % 4.76 % 2.80 % 4.44 % (a) The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. (b) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (c) Represents investments in debt securities issued by Community Development Financial Institutions. (d) Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent. |
Asset Securitizations
Asset Securitizations | 12 Months Ended |
Dec. 31, 2023 | |
Asset Securitizations [Abstract] | |
Asset Securitizations | ASSET SECURITIZATIONS We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors. The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. Refer to Note 1 for further details on the principles of consolidation. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. Our ownership of variable interests in the Lending Trust was $15.3 billion and $16.0 billion as of December 31, 2023 and 2022, respectively, and in the Charge Trust was $4.6 billion and $5.2 billion as of December 31, 2023 and 2022, respectively. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts and therefore consolidate the Trusts. The debt securities issued by the Trusts are non-recourse to us. The securitized Card Member loans and receivables held by the Lending Trust and the Charge Trust, respectively, are available only for payment of the debt securities or other obligations issued or arising in the securitization transactions (refer to Note 2). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 8). Restricted cash and cash equivalents held by the Lending Trust was $66 million and $59 million as of December 31, 2023 and 2022, respectively, and by the Charge Trust was nil as of both December 31, 2023 and 2022. These amounts relate to collections of Card Member loans and receivables to be used by the Trusts to fund future expenses and obligations, including interest on debt securities, credit losses and upcoming debt maturities. Under the respective terms of the Lending Trust and the Charge Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve funds, or, in a worst-case scenario, early amortization of debt securities. During the years ended December 31, 2023 and 2022, no such triggering events occurred. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Other Assets | OTHER ASSETS The following is a summary of Other assets as of December 31: (Millions) 2023 2022 Goodwill $ 3,851 $ 3,786 Other intangible assets, at amortized cost 98 146 Other (a) 15,165 13,757 Total $ 19,114 $ 17,689 (a) Primarily includes net deferred tax assets, other receivables net of reserves, investments in non-consolidated entities, prepaid assets, tax credit investments and right-of-use lease assets. GOODWILL The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows: (Millions) USCS CS ICS GMNS Total Balance as of December 31, 2021 $ 368 $ 2,123 $ 753 $ 560 $ 3,804 Acquisitions 13 — — — 13 Dispositions — — — — — Other (a) (2) (1) (28) — (31) Balance as of December 31, 2022 $ 379 $ 2,122 $ 725 $ 560 $ 3,786 Acquisitions — 30 — 18 48 Dispositions — — — — — Other (a) — (1) 18 — 17 Balance as of December 31, 2023 $ 379 $ 2,151 $ 743 $ 578 $ 3,851 (a) Primarily includes foreign currency translation. Accumulated impairment losses were $221 million as of both December 31, 2023 and 2022. OTHER INTANGIBLE ASSETS Intangible assets are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. The gross carrying amount for other intangible assets as of December 31, 2023 and 2022 was $717 million and $720 million, respectively, with accumulated amortization of $619 million and $574 million, respectively. Amortization expense was $49 million, $51 million and $57 million for the years ended December 31, 2023, 2022 and 2021, respectively. For other intangible assets on the Consolidated Balance Sheets as of December 31, 2023, amortization expense is expected to be $44 million in 2024, $21 million in 2025, $11 million in 2026, $9 million in 2027, $4 million in 2028 and $8 million thereafter. TAX CREDIT INVESTMENTS We hold tax credit investments that promote affordable housing, community development, and small businesses that foster economic growth in underserved areas and support compliance with the Community Reinvestment Act by our U.S. bank subsidiary, American Express National Bank (AENB). These investments generate a return primarily through the realization of income tax credits and other income tax benefits. As of December 31, 2023 and 2022, we had $1,369 million and $1,207 million in tax credit investments, respectively, included in Other assets on the Consolidated Balance Sheets, comprised of LIHTC investments (previously referred to as Qualified Affordable Housing investments) and other qualifying investments. We account for such tax credit investments using the Proportional Amortization Method, which we elected to implement prospectively on January 1, 2021 for LIHTC investments and in the fourth quarter of 2023 for other qualifying investments. As of December 31, 2023 and 2022, $1,126 million and $1,042 million of our tax credit investments, respectively, related to investments in unconsolidated VIEs for which we do not have a controlling financial interest. As of December 31, 2023, we committed to provide funding related to certain of our tax credit investments, which is expected to be paid between 2024 and 2040, resulting in $573 million in unfunded commitments reported in Other liabilities, of which $409 million specifically related to unconsolidated VIEs. In addition, as of December 31, 2023, we had contractual off-balance sheet obligations to provide additional funding up to $3 million for these tax credit investments, fully related to unconsolidated VIEs. We may be required to fund these amounts between 2024 and 2034. The following table presents tax credit investment expenses and associated income tax credits and other income tax benefits for the years ended December 31: (Millions) 2023 2022 2021 Proportional amortization recognized in tax provision $ 185 $ 161 $ 226 Equity method expenses recognized in Other, net expenses $ — $ 9 $ 13 Income tax credits and Other income tax benefits (a) recognized in tax provision $ 204 $ 196 $ 182 (a) Other income tax benefits are a result of tax deductible expenses generated by our tax credit investments. Income tax credits and other income tax benefits associated with our tax credit investments are also recognized in the Consolidated Statements of Cash Flows in the Operating activities section primarily under Accounts payable and other liabilities. |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Customer Deposits | CUSTOMER DEPOSITS As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2023 2022 U.S.: Interest-bearing $ 128,146 $ 109,119 Non-interest-bearing (includes Card Member credit balances of: 2023, $495; 2022, $605) 557 663 Non-U.S.: Interest-bearing 12 15 Non-interest-bearing (includes Card Member credit balances of: 2023, $426; 2022, $439) 429 442 Total customer deposits $ 129,144 $ 110,239 Customer deposits by deposit type as of December 31 were as follows: (Millions) 2023 2022 U.S. retail deposits: Savings and transaction accounts $ 93,722 $ 76,731 Certificates of deposit: Direct 5,557 2,760 Third-party (brokered) 12,960 13,331 Sweep accounts ― Third-party (brokered) 15,907 16,297 Total U.S. retail deposits $ 128,146 $ 109,119 Other deposits 77 76 Card Member credit balances 921 1,044 Total customer deposits $ 129,144 $ 110,239 The scheduled maturities of certificates of deposit as of December 31, 2023 were as follows: (Millions) 2024 2025 2026 2027 2028 After 5 years Total Certificates of deposit (a) $ 11,740 $ 4,370 $ 933 $ 776 $ 704 $ — $ 18,523 (a) Includes $6 million of non-U.S. direct certificates of deposit as of December 31, 2023. As of December 31, 2023 and 2022, certificates of deposit in denominations that met or exceeded the insured limit were $1.8 billion and $1.0 billion, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT SHORT-TERM BORROWINGS Our short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2023 2022 (Millions, except percentages) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Short-term borrowings (b) $ 1,293 1.03 % $ 1,348 0.94 % Total $ 1,293 1.03 % $ 1,348 0.94 % (a) For floating-rate issuances, the stated interest rates are weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2023 and 2022. (b) Includes borrowings from banks and book overdrafts with banks, which represents negative cash balances for accounts with an associated overdraft facility, due to timing differences arising in the ordinary course of business. As of December 31, 2023, we maintained a three-year committed, revolving, secured borrowing facility, with a maturity date of September 15, 2026, which gives us the right to sell up to $3.0 billion face amount of eligible certificates issued from the Lending Trust. This facility enhances our contingent funding resources and is also used in the ordinary course of business to fund working capital needs. The facility was undrawn as of both December 31, 2023 and 2022. Additionally, certain of our subsidiaries maintained total committed lines of credit of $185 million and $186 million as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, nil and $20.9 million were drawn on these committed lines, respectively. We paid $12.0 million and $7.8 million in fees to maintain the secured borrowing facility in 2023 and 2022, respectively. The committed facility does not contain a material adverse change clause, which might otherwise preclude borrowing under the facility, nor is it dependent on our credit rating. LONG-TERM DEBT Our long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2023 2022 (Millions, except percentages) Original Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) American Express Company Fixed Rate Senior Notes 2024 - 2042 $ 20,930 3.48 % 4.14 % $ 23,813 3.34 % 4.00 % Floating Rate Senior Notes 2024 - 2027 2,400 6.21 — 3,000 4.78 — Fixed-to-Floating Rate Senior Notes 2026 - 2034 8,769 5.38 5.91 1,250 4.42 — Fixed Rate Subordinated Notes 2024 586 3.63 6.74 574 3.63 5.46 Fixed-to-Floating Rate Subordinated Notes 2033 - 2034 1,257 5.24 5.92 750 4.99 — American Express Credit Corporation Fixed Rate Senior Notes 2027 330 3.30 328 3.30 — Lending Trust Fixed Rate Senior Notes 2024 - 2028 13,449 3.36 3.49 10,499 2.81 — Floating Rate Senior Notes — — — 2,125 4.67 — Floating Rate Subordinated Notes — — — 61 4.89 — Other Finance Leases — — 3 5.76 — Floating Rate Borrowings 2024 - 2026 238 0.42 254 0.41 — % Unamortized Underwriting Fees (93) (84) Total Long-Term Debt $ 47,866 3.96 % $ 42,573 3.42 % (a) The outstanding balances include (i) unamortized discount, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Refer to Note 13 for more details on our treatment of fair value hedges. (b) For floating-rate issuances, the stated interest rate on debt is weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2023 and 2022. (c) Interest rates with swaps are only presented when swaps are in place to hedge the underlying debt. The interest rates with swaps are weighted based on the outstanding principal balances and the interest rates on the floating leg of the swaps in effect as of December 31, 2023 and 2022. Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2023 were as follows: (Millions) 2024 2025 2026 2027 2028 Thereafter Total American Express Company (Parent Company only) $ 7,500 $ 5,250 $ 6,700 $ 6,411 $ — $ 8,523 $ 34,384 American Express Credit Corporation — — — 339 — — 339 Lending Trust 2,750 7,250 2,100 — 1,350 — 13,450 Other 105 63 70 238 $ 10,355 $ 12,563 $ 8,870 $ 6,750 $ 1,350 $ 8,523 $ 48,411 Unamortized Underwriting Fees (93) Unamortized Discount and Premium (505) Impacts due to Fair Value Hedge Accounting 53 Total Long-Term Debt $ 47,866 We maintained a committed syndicated bank credit facility of $4.0 billion as of December 31, 2023 and $3.5 billion as of December 31, 2022, all of which was undrawn as of the respective dates. The facility has a maturity date of October 30, 2026, and the availability of the facility is subject to compliance with certain covenants, principally our maintenance of a minimum Common Equity Tier 1 (CET1) risk-based capital ratio of 4.5 percent, with certain restrictions in relation to either accessing the facility or distributing capital to common shareholders in the event our CET1 risk-based capital ratio falls between 4.5 percent and 6.5 percent. As of December 31, 2023 and 2022, we were in compliance with the covenants contained in the credit facility. Additionally, we maintained a three-year committed, revolving, secured borrowing facility that gives us the right to sell up to $3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 15, 2026. As of both December 31, 2023 and 2022, no amounts were outstanding on this facility. We paid $20.2 million and $14.1 million in fees to maintain these lines in 2023 and 2022, respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are they dependent on our credit rating. We paid total interest, primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits, of $6.4 billion, $2.2 billion and $1.1 billion in 2023, 2022 and 2021, respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | OTHER LIABILITIES The following is a summary of Other liabilities as of December 31: (Millions) 2023 2022 Membership Rewards liability $ 13,742 $ 12,789 Book overdraft balances (a) 9,897 7,352 Deferred card and other fees, net 3,442 3,027 Employee-related liabilities (b) 2,567 2,530 Card Member rebate and reward accruals (c) 2,061 2,126 Income tax liability (d) 1,275 1,651 Other (e) 8,655 7,875 Total $ 41,639 $ 37,350 (a) Primarily includes negative cash balances for accounts without an associated overdraft facility, due to timing differences arising in the ordinary course of business. (b) Includes employee benefit plan obligations and incentive compensation. (c) Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. (d) Includes repatriation tax liability of $998 million and $1,012 million as of December 31, 2023 and 2022, respectively, which represents our remaining obligation under the Tax Cuts and Jobs Act enacted on December 22, 2017 (Tax Act) to pay a one-time transition tax on unrepatriated earnings and profits of certain foreign subsidiaries, the net position for current federal, state and non-U.S. income tax liabilities and deferred tax liabilities for foreign jurisdictions. (e) Primarily includes prepaid products and Travelers Cheques, lease liabilities, derivative liabilities, accruals for general operating expenses, payments to cobrand partners, unfunded commitments for tax credit investments, client incentives and dividends payable. MEMBERSHIP REWARDS The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad variety of rewards including, but not limited to, travel, shopping, gift cards, and covering eligible charges. We record a Membership Rewards liability that represents our best estimate of the cost of points earned that are expected to be redeemed by Card Members in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are the key assumptions used to estimate the liability. We use statistical and actuarial models to estimate the URR based on redemption trends, card product type, enrollment tenure, card spend levels and credit attributes. The WAC per point assumption is derived from 12 months of redemptions and is adjusted as appropriate for certain changes in redemption costs that are not representative of future cost expectations and expected developments in redemption patterns. The expense for Membership Rewards points is included in Card Member rewards expense. We periodically evaluate our liability estimation process and assumptions based on changes in cost per point redeemed, partner contract changes and developments in redemption patterns, which may be impacted by product refreshes, changes in redemption options and mix of proprietary cards-in-force. DEFERRED CARD AND OTHER FEES, NET The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations, as of December 31, 2023 was as follows: (Millions) 2023 2022 Deferred card and other fees (a) $ 3,818 $ 3,380 Deferred direct acquisition costs (158) (173) Reserves for membership cancellations (218) (180) Deferred card and other fees, net $ 3,442 $ 3,027 (a) Includes deferred fees for Membership Rewards program participants. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION STOCK OPTION AND AWARD PROGRAMS Under our 2016 Incentive Compensation Plan (amended and restated effective May 5, 2020) and previously under our 2007 Incentive Compensation Plan, awards may be granted to colleagues and other individuals who perform services for us. These awards may be in the form of stock options, or in the form of restricted stock units and awards (collectively referred to as RSUs), or other incentives or similar awards designed to meet the requirements of non-U.S. jurisdictions. There were a total of 7 million, 9 million and 12 million common shares unissued and available for grant as of December 31, 2023, 2022 and 2021, respectively, as authorized by our Board of Directors and shareholders. We generally issue new common shares upon exercise of options, vesting of restricted stock units and granting of restricted stock awards. Stock-based compensation expense recognized in Salaries and employee benefits in the Consolidated Statements of Income was $450 million, $373 million and $326 million in 2023, 2022 and 2021, respectively, with corresponding income tax benefits of $110 million, $90 million and $78 million in those respective periods. Our stock options and RSUs outstanding as of December 31, 2023, and changes during the year, are as follows: Stock Options Service-Based RSUs Service and Performance-Based RSUs (Numbers in thousands) Number Weighted-Average Number Weighted- Average Grant- Date Fair Value Number Weighted- Average Grant- Date Fair Value Outstanding as of December 31, 2022 3,634 $ 113.80 1,788 $ 142.92 3,472 $ 135.57 Granted 230 173.61 910 172.02 1,395 158.57 Options exercised/RSUs vested (311) 89.62 (787) 134.97 (1,498) 136.16 Forfeited — — (84) 162.18 (73) 153.04 Expired — — — — — — Outstanding as of December 31, 2023 3,553 119.80 1,827 $ 159.95 3,296 $ 144.64 Options vested and expected to vest as of December 31, 2023 3,547 119.74 Options exercisable as of December 31, 2023 1,810 $ 90.94 Stock-based compensation expense is generally recognized ratably based on the grant-date fair value of the awards, net of expected forfeitures, over the vesting period. Generally, the vesting period is the time from the grant date to the earlier of the vesting date defined in each award agreement or the date the colleague will become eligible to retire. Retirement eligibility is dependent upon age and/or years of service. STOCK OPTIONS Each stock option has an exercise price equal to the market price of our common stock on the grant date. Stock options generally vest on the third anniversary of, and have a contractual term of 10 years from, the grant date. The fair value of options without market conditions is estimated on the grant date using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2023, 2022 and 2021: 2023 2022 2021 Dividend yield 1.4 % 1.0 % 1.5 % Expected volatility (a) 32 % 31 % 31 % Risk-free interest rate 3.5 % 1.7 % 0.8 % Expected life of stock option ( in years ) (b) 7.1 7.1 7.2 Weighted-average fair value per option $ 60.03 $ 55.30 $ 32.38 (a) The expected volatility is based on historical and implied volatilities of our common stock price. (b) The expected life of stock options was determined using historical option exercise behavior. Certain executives were awarded a grant of stock options on October 31, 2022 that vest, subject to achieving performance and market conditions. These options vest in tranches on the third and fourth anniversaries from the grant date, subject to continued employment through the applicable anniversary, and have a contractual term of seven years. The fair value was estimated at the grant date using a Monte Carlo valuation model assuming a dividend yield of 1.4 percent, expected volatility (based on historical and implied volatilities of our common stock price) of 34 percent, risk-free rate of 3.9 percent and an expected life of seven years, resulting in a fair value of $50.10. The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock price exceeds the exercise price of the option) of the stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2023, were as follows: Outstanding Exercisable Vested and Weighted-average remaining contractual life (in years) 5.2 3.5 5.2 Aggregate intrinsic value (millions) $ 240 $ 174 $ 240 As of December 31, 2023, there was $32 million of total unrecognized compensation cost related to unvested options, which will be recognized over the weighted-average remaining vesting period of 2.1 years. For stock options that were exercised during 2023, 2022 and 2021, the intrinsic value, based upon the fair value of our stock price at the date the options were exercised, was $26 million, $56 million and $86 million, respectively; cash received by the Company from the exercise of stock options was $28 million, $56 million and $64 million during those respective periods. The income tax benefit recognized in the Consolidated Statements of Income related to stock option exercises was $4 million, $9 million and $14 million in 2023, 2022 and 2021, respectively. RESTRICTED STOCK UNITS/AWARDS We grant RSUs that contain either a) service conditions or b) both service and performance conditions. RSUs containing only service conditions generally vest ratably over three years, or four years for awards granted prior to 2022, beginning with the first anniversary of the grant date. RSUs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned generally ranges from zero to 120 percent of target depending on the achievement of predetermined Company metrics. RSU holders receive dividend equivalents or dividends. Performance-based RSUs include a relative total shareholder return (r-TSR) modifier so that our actual shareholder return relative to a comparable peer group is one of the performance conditions that determines the number of shares ultimately issued upon vesting. The fair value of RSUs that do not include the r-TSR modifier, including those that contain only service conditions, is measured using our stock price on the grant date. The fair value of service and performance-based RSUs that include the r-TSR modifier is determined using a Monte Carlo valuation model using assumptions based on the historical volatility of our common stock price, the historical correlations of our common stock price with that of each of the companies in the performance peer group and the risk-free interest rate, each for a period equal to the estimated remaining performance period. The weighted averages of the following assumptions used in 2023, 2022 and 2021 were: 2023 2022 2021 Expected volatility 45 % 42 % 41 % Risk-free interest rate 3.7 % 1.4 % 0.2 % Remaining performance period (in years) 2.9 2.9 2.9 As of December 31, 2023, there was $258 million of total unrecognized compensation cost related to non-vested RSUs, which will be recognized over the weighted-average remaining vesting period of 1.7 years. The weighted-average grant-date fair value of RSUs granted in 2023, 2022 and 2021 was $163.88, $168.26 and $123.66, respectively. For RSUs vested during 2023, 2022 and 2021, the total fair value, based upon our stock price at the date the RSUs vested, was $389 million, $323 million and $227 million, respectively. LIABILITY-BASED AWARDS Other incentive awards can be settled with cash or equity shares at our discretion and final approval from the Compensation and Benefits Committee. These awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the grant date and remeasured quarterly as part of compensation expense over the vesting period. Cash paid upon vesting of these awards in 2023, 2022 and 2021 was $55 million, $50 million and $53 million, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS DEFINED CONTRIBUTION RETIREMENT PLANS We sponsor defined contribution retirement plans, the principal plan being the Retirement Savings Plan (RSP), a 401(k) savings plan with a profit-sharing component. The RSP is a tax-qualified retirement plan subject to the Employee Retirement Income Security Act of 1974 and covers most employees in the United States. The total expense for all defined contribution retirement plans globally was $380 million, $259 million and $269 million in 2023, 2022 and 2021, respectively. DEFINED BENEFIT PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Our primary defined benefit pension plans that cover certain employees in the United States and United Kingdom are closed to new entrants and existing participants do not accrue any additional benefits. Some employees outside the United States and United Kingdom are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. We comply with minimum funding requirements in all countries. We also sponsor unfunded other postretirement benefit plans that provide health care and life insurance to certain retired colleagues in the United States. For these plans, the total net benefit was $12 million, $24 million and $26 million in 2023, 2022 and 2021, respectively. We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the Consolidated Balance Sheets. As of December 31, 2023 and 2022, the unfunded status related to the defined benefit pension plans and other postretirement benefit plans was $212 million and $278 million, respectively, and is recorded in Other liabilities. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | CONTINGENCIES AND COMMITMENTS CONTINGENCIES In the ordinary course of business, we and our subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, regulatory proceedings, information gathering requests, subpoenas, inquiries and matters relating to compliance with laws and regulations (collectively, legal proceedings). Based on our current knowledge, and taking into consideration our litigation-related liabilities, we do not believe we are a party to, nor are any of our properties the subject of, any legal proceeding that would have a material adverse effect on our consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, penalties or fines, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described below. On February 25, 2020, we were named as a defendant in a case filed in the Superior Court of California, Los Angeles County, captioned Laurelwood Cleaners LLC v. American Express Co., et al. , in which the plaintiff seeks a public injunction in California prohibiting American Express from enforcing its anti-steering and non-discrimination provisions and from requiring merchants “to offer the service of Amex-card acceptance for free.” The case has been stayed pending the outcome of arbitration proceedings. On January 29, 2019, we were named in a putative class action brought in the United States District Court for the Eastern District of New York, captioned Anthony Oliver, et al. v. American Express Company and American Express Travel Related Services Company Inc. , in which the plaintiffs are holders of MasterCard, Visa and/or Discover credit and/or debit cards (but not American Express cards) and allege they paid higher prices as a result of our anti-steering and non-discrimination provisions in violation of federal antitrust law and the antitrust and consumer laws of various states. Plaintiffs seek unspecified damages and other forms of relief. The court dismissed plaintiffs’ federal antitrust claim, numerous state antitrust and consumer protection claims and their unjust enrichment claim. For the remaining state antitrust or consumer protection claims, the court certified classes for (i) holders of Visa and MasterCard debit cards in eight states and Washington, D.C.; and (ii) holders of Visa, MasterCard and Discover credit cards that do not offer rewards or charge an annual fee in two states and Washington, D.C. We have appealed the court’s class certification decisions. On March 8, 2016, plaintiffs B&R Supermarket, Inc. d/b/a Milam’s Market and Grove Liquors LLC, on behalf of themselves and others, filed a suit, captioned B&R Supermarket, Inc. d/b/a Milam’s Market, et al. v. Visa Inc., et al. , for violations of the Sherman Antitrust Act, the Clayton Antitrust Act, California’s Cartwright Act and unjust enrichment in the United States District Court for the Northern District of California, against American Express Company, other credit and charge card networks, other issuing banks and EMVCo, LLC. Plaintiffs allege that the defendants, through EMVCo, conspired to shift liability for fraudulent, faulty and otherwise rejected consumer credit card transactions from themselves to merchants after the implementation of EMV chip payment terminals. Plaintiffs seek damages and injunctive relief. An amended complaint was filed on July 15, 2016. On September 30, 2016, the court denied our motion to dismiss as to claims brought by merchants who do not accept American Express cards, and on May 4, 2017, the California court transferred the case to the United States District Court for the Eastern District of New York. On August 28, 2020, the court granted plaintiffs’ motion for class certification. In July 2004, we were named as a defendant in a putative class action filed in the Southern District of New York and subsequently transferred to the Eastern District of New York, captioned The Marcus Corporation v. American Express Co., et al. , in which the plaintiffs allege an unlawful antitrust tying arrangement between certain of our charge cards and credit cards in violation of various state and federal laws. The plaintiffs in this action seek injunctive relief and an unspecified amount of damages. In 2006, Mawarid Investments Limited filed a request for confidential arbitration under the 1998 London Court of International Arbitration Rules in connection with certain claims arising under a shareholders agreement between Mawarid and American Express Travel Related Services Company, Inc. relating to a joint venture between the parties, Amex (Middle East) BSC(c) (AEME). In 2008, the tribunal rendered a partial award, including a direction that an audit should take place to verify whether acquirer discount revenue related to transactions occurring with airlines located in the Middle East region had been properly allocated to AEME since its inception in 1992. In September 2021, the tribunal rendered a further partial award regarding the location of transactions through non-physical channels. In May 2022, the tribunal further clarified the 2021 partial award and the discount rate that should apply to transactions through non-physical channels. In May 2020, we began responding to a review by the Office of the Comptroller of the Currency (OCC) and the Department of Justice (DOJ) Civil Division regarding historical sales practices relating to sales to small business customers in the United States. In January 2021, we received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York (EDNY) regarding these sales practices issues, as well as a Civil Investigative Demand from the Consumer Financial Protection Bureau (CFPB) pertaining to its investigation into sales practices related to consumers. We have also been made aware of a related investigation by the New York Department of Financial Services (NYDFS). In January 2023, the CFPB notified us that its investigation was completed and that it does not intend to recommend an enforcement action be taken against us at this time. In July 2023, we reached a settlement with the OCC to resolve its review of historical sales practices to certain U.S. small business card customers that occurred between 2015 and 2017. The DOJ, EDNY and NYDFS investigations are ongoing, and we are cooperating with all inquiries. We are being challenged in a number of countries regarding our application of value-added taxes (VAT) to certain of our international transactions, which are in various stages of audit, or are being contested in legal actions. While we believe we have complied with all applicable tax laws, rules and regulations in the relevant jurisdictions, the tax authorities may determine that we owe additional VAT. In certain jurisdictions where we are contesting the assessments, we were required to pay the VAT assessments prior to contesting. Our legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members to governmental proceedings. These legal proceedings involve various lines of business and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against us specify the damages sought, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficiently such that we are able to estimate an amount of loss or a range of possible loss. We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. For those disclosed legal proceedings where a loss is reasonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies, or where there is no such accrual, and for which we are able to estimate a range of possible loss, the current estimated range is zero to $400 million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business and results of operations. COMMITMENTS Total lease expense includes rent expenses, adjustments for rent concessions, rent escalations and leasehold improvement allowances and is recognized on a straight-line basis over the lease term. Total lease expense for the years ended December 31, 2023, 2022 and 2021 was $164 million, $188 million and $161 million, respectively. Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. For lease liabilities outstanding as of December 31, 2023, the weighted average remaining lease term was 19 years and the weighted average rate used to discount lease commitments was 3 percent. The following represents the maturities of our outstanding lease commitments as of December 31, 2023: (Millions) 2024 $ 159 2025 139 2026 121 2027 104 2028 98 Thereafter 841 Total Outstanding Fixed Lease Payments $ 1,462 Less: Amount representing interest $ (536) Lease Liabilities $ 926 As of December 31, 2023, we had approximately $14.0 billion in financial commitments outstanding related to agreements with certain cobrand partners under which we are required to make a certain level of minimum payments over the life of the agreement, generally ranging from five Our U.S. bank subsidiary, AENB, is a member of the Federal Reserve System (the Federal Reserve) and is therefore required to subscribe to a certain amount of shares issued by its Federal Reserve District Bank, with half of the subscribed amount paid up front. As of both December 31, 2023 and 2022, AENB held shares with a carrying value of $132 million, with the remaining half subject to call by the Federal Reserve District Bank Board, the likelihood of which we believe is remote. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES We use derivative financial instruments to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates and foreign exchange rates, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of our market risk management. We do not transact in derivatives for trading purposes. Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Our market risk exposures include: • Interest rate risk due to changes in the relationship between the interest rates on our assets (such as loans, receivables and investment securities) and the interest rates on our liabilities (such as debt and deposits); and • Foreign exchange risk related to transactions, funding, investments and earnings in currencies other than the U.S. dollar. We centrally monitor market risks using market risk limits and escalation triggers as defined in our Asset/Liability Management Policy. Our market exposures are in large part by-products of the delivery of our products and services. Interest rate risk primarily arises through the funding of Card Member receivables and fixed-rate loans with variable-rate borrowings, as well as through the risk to net interest margin from changes in the relationship between benchmark rates such as Prime, the secured overnight financing rate and the overnight indexed swap rate. Interest rate exposure within our charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt and deposits compared to fixed-rate debt and deposits. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations, or to convert variable-rate debt obligations to fixed-rate obligations. We may change the mix between variable-rate and fixed-rate funding based on changes in business volumes and mix, among other factors. Foreign exchange exposures arise in four principal ways: (1) Card Member spending in currencies that are not the billing currency, (2) cross-currency transactions and balances from our funding activities, (3) cross-currency investing activities, such as in the equity of foreign subsidiaries and (4) revenues generated and expenses incurred in foreign currencies, which impact earnings. Our foreign exchange risk is managed primarily by entering into agreements to buy and sell currencies on a spot basis or by hedging this market exposure, to the extent it is economical, through various means, including the use of derivatives such as foreign exchange forwards. Derivatives may give rise to counterparty credit risk, which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to, an uncollateralized derivative exposure. We manage this risk by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential future exposure of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are required to be pre-approved by us and rated as investment grade, and counterparty risk exposures are centrally monitored. A majority of our derivative assets and liabilities as of December 31, 2023 and 2022 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets. To further mitigate counterparty credit risk, we exercise our rights under executed credit support agreements with the respective derivative counterparties for our bilateral interest rate swaps and select foreign exchange contracts. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All derivative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts. In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate the relevant agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of December 31, 2023, these derivatives were not in a material net liability position and we had no material risk exposure to any individual derivative counterparty. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of December 31, 2023 and 2022, no credit risk adjustment to the derivative portfolio was required. Our derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below. Refer to Note 14 for a description of our methodology for determining the fair value of derivatives. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: Other Assets Fair Value Other Liabilities Fair Value (Millions) 2023 2022 2023 2022 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ — $ — $ 99 $ 211 Net investment hedges - Foreign exchange contracts 9 350 455 251 Total derivatives designated as hedging instruments 9 350 554 462 Derivatives not designated as hedging instruments: Foreign exchange contracts and other 71 171 423 339 Total derivatives, gross 80 521 977 801 Derivative asset and derivative liability netting (b) (57) (257) (57) (257) Cash collateral netting (c) — (11) (106) (212) Total derivatives, net $ 23 $ 253 $ 814 $ 332 (a) For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral. (b) Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. (c) Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty. We posted $175 million and $8 million as of December 31, 2023 and 2022, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances. DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR HEDGE ACCOUNTING Derivatives executed for hedge accounting purposes are documented and designated as such when we enter into the contracts. In accordance with our risk management policies, we structure our hedges with terms similar to those of the item being hedged. We formally assess, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, we will discontinue the application of hedge accounting. FAIR VALUE HEDGES A fair value hedge involves a derivative designated to hedge our exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof, that is attributable to a particular risk. Interest Rate Contracts We are exposed to interest rate risk associated with our fixed-rate debt obligations. At the time of issuance, certain fixed-rate long-term debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rate. We had $11.7 billion and $8.1 billion of fixed-rate debt obligations designated in fair value hedging relationships as of December 31, 2023 and 2022, respectively. Gains or losses on the fair value hedging instrument principally offset the losses or gains on the hedged item attributable to the hedged risk. The changes in the fair value of the derivative and the changes in the hedged item may not fully offset due to differences between a debt obligation’s interest rate and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the fair value of the interest rate swap. The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the years ended December 31: Gains (losses) (Millions) 2023 2022 2021 Fixed-rate long-term debt $ (289) $ 473 $ 385 Derivatives designated as hedging instruments 290 (476) (385) Total $ 1 $ (3) $ — The carrying values of the hedged liabilities, recorded within Long-term debt We recognized in Interest expense on Long-term debt a net increase of $189 million for the year ended December 31, 2023 and net decreases of $57 million and $256 million for the years ended December 31, 2022 and 2021, respectively. These were primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges. NET INVESTMENT HEDGES A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We had notional amounts of approximately $14.1 billion and $12.5 billion of foreign currency derivatives designated as net investment hedges as of December 31, 2023 and 2022, respectively. The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, was a loss of $640 million and gains of $237 million and $176 million for the years ended December 31, 2023, 2022 and 2021, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income were not significant for the years ended December 31, 2023, 2022 and 2021, respectively. DERIVATIVES NOT DESIGNATED AS HEDGES We have derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified date. 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. We had notional amounts of approximately $25.3 billion and $21.7 billion as of December 31, 2023 and 2022, respectively. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in a net gains of $82 million and $8 million and a net loss of $21 million for the years ended December 31, 2023, 2022 and 2021, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income. Our embedded derivative related to seller earnout shares granted to us upon the completion of a business combination in the second quarter of 2022 between our equity method investee, American Express Global Business Travel, and Apollo Strategic Growth Capital (C Ordinary Shares of GBT JerseyCo Limited) had a notional amount of $78 million as of both December 31, 2023 and 2022.This embedded derivative had a fair value of $18 million and $27 million as of December 31, 2023 and 2022, respectively. The changes in the fair value of the embedded derivative resulted in a loss of $9 million and a gain of $4 million for the years ended December 31, 2023 and 2022, respectively, which were recognized in Service fees and other revenue in the Consolidated Statements of Income. |
Fair Values
Fair Values | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Values | FAIR VALUES Fair value is defined as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the principal or, in the absence of a principal, most advantageous market for the specific asset or liability. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: • Level 1 ― Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. • Level 2 ― Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: – Quoted prices for similar assets or liabilities in active markets; – Quoted prices for identical or similar assets or liabilities in markets that are not active; – Inputs other than quoted prices that are observable for the asset or liability; and – Inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 ― Inputs that are unobservable and reflect our own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). We monitor the market conditions and evaluate the fair value hierarchy levels at least quarterly. For the years ended December 31, 2023 and 2022, there were no Level 3 transfers. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT FAIR VALUE The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy (as described in the preceding paragraphs), as of December 31: 2023 2022 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 66 $ 66 $ — $ — $ 41 $ 40 $ 1 $ — Debt securities 2,120 — 2,046 74 4,537 — 4,490 47 Derivatives, gross (a)(b) 80 — 62 18 521 — 494 27 Total Assets 2,266 66 2,108 92 5,099 40 4,985 74 Liabilities: Derivatives, gross (a) 977 — 977 — 801 — 801 — Total Liabilities $ 977 $ — $ 977 $ — $ 801 $ — $ 801 $ — (a) Refer to Note 4 for the fair values of investment securities and to Note 13 for the fair values of derivative assets and liabilities, on a further disaggregated basis. (b) Level 3 fair value reflects an embedded derivative. Management reviews and applies judgment to the valuation of the embedded derivative that is performed by an independent third party using a Monte Carlo simulation that models a range of probable future stock prices based on implied volatility in a risk neutral framework. Refer to Note 13 for additional information about this embedded derivative. VALUATION TECHNIQUES USED IN THE FAIR VALUE MEASUREMENT OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT FAIR VALUE For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table above), we apply the following valuation techniques: Investment Securities When available, quoted prices of identical investment securities in active markets are used to estimate fair value. Such investment securities are classified within Level 1 of the fair value hierarchy. When quoted prices of identical investment securities in active markets are not available, the fair values for our investment securities are obtained primarily from pricing services engaged by us, and we receive one price for each security. The fair values provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. Such investment securities are classified within Level 2 of the fair value hierarchy. The inputs to the valuation techniques applied by the pricing services vary depending on the type of security being priced but are typically benchmark yields, benchmark security prices, credit spreads, prepayment speeds, reported trades and broker-dealer quotes, all with reasonable levels of transparency. The pricing services did not apply any adjustments to the pricing models used. In addition, we did not apply any adjustments to prices received from the pricing services. We reaffirm our understanding of the valuation techniques used by our pricing services at least annually. In addition, we corroborate the prices provided by our pricing services by comparing them to alternative pricing sources. In instances where price discrepancies are identified between different pricing sources, we evaluate such discrepancies to ensure that the prices used for our valuation represent the fair value of the underlying investment securities. Refer to Note 4 for additional information on investment securities. Within Level 3 of the fair value hierarchy are our holdings of debt securities issued by Community Development Financial Institutions. We take the carrying value for these investment securities to be a reasonable proxy for their fair value unless we determine, based on our internal credit model, that there are indicators that the contractual cash flows will not be received in full. Derivative Financial Instruments The fair value of our Level 2 derivative financial instruments is estimated by using third-party pricing models, where the inputs to those models are readily observable from active markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. We reaffirm our understanding of the valuation techniques at least annually and validate the valuation output on a quarterly basis. The fair value of our interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. Our Level 3 derivative financial instrument represents an embedded derivative in the form of C Ordinary Shares of GBT JerseyCo Limited. The fair valuation is performed by an independent third party using a Monte Carlo Simulation technique that models a range of probable future stock prices using the following significant inputs: term of the earnout, initial stock price, annual expected volatility of the common stock over the expected term, annual risk-neutral rate of return over the contractual term and dividend yield, which is further reviewed by management. Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve, used to value derivatives are not indicative of our credit quality or that of our counterparties. We consider the counterparty credit risk by applying an observable forecasted default rate to the current exposure. Refer to Note 13 for additional information on derivative financial instruments. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT OTHER THAN FAIR VALUE The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of December 31, 2023 and 2022. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2023 and 2022, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented. 2023 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 47 $ 47 $ 45 $ 2 $ — Other financial assets (b) 63 63 — 63 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 128 133 — — 133 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 143 143 — 143 — Financial liabilities carried at other than fair value Certificates of deposit (d) 19 18 — 18 — Long-term debt (c) $ 48 $ 48 $ — $ 48 $ — 2022 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 34 $ 34 $ 32 $ 2 $ — Other financial assets (b) 60 60 — 60 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 110 113 — — 113 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 123 123 — 123 — Financial liabilities carried at other than fair value Certificates of deposit (d) 16 16 — 16 — Long-term debt (c) $ 43 $ 42 $ — $ 42 $ — (a) Level 2 fair value amounts reflect time deposits and short-term investments. (b) Balances include Card Member receivables (including fair values of Card Member receivables of $4.6 billion and 5.2 billion held by a consolidated VIE as of December 31, 2023 and 2022, respectively), other receivables and other miscellaneous assets. (c) Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $28.6 billion and $28.4 billion as of December 31, 2023 and 2022, respectively, and the fair values of Long-term debt were $13.3 billion and $12.3 billion as of December 31, 2023 and 2022, respectively. (d) Presented as a component of Customer deposits on the Consolidated Balance Sheets. VALUATION TECHNIQUES USED IN THE FAIR VALUE MEASUREMENT OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT OTHER THAN FAIR VALUE For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table), we apply the following valuation techniques to measure fair value: Financial Assets For Which Carrying Values Equal Or Approximate Fair Value Financial assets for which carrying values equal or approximate fair value include cash and cash equivalents, Card Member receivables, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Assets Carried At Other Than Fair Value Card Member and Other loans, less reserves Card Member and Other loans are recorded at historical cost, less reserves, on the Consolidated Balance Sheets. In estimating the fair value for our loans, we use a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar loans and the lack of observable pricing inputs thereof, we use various inputs to estimate fair value. Such inputs include projected income, discount rates and forecasted write-offs. The valuation does not include economic value attributable to future receivables generated by the accounts associated with the loans. Financial Liabilities For Which Carrying Values Equal Or Approximate Fair Value Financial liabilities for which carrying values equal or approximate fair value include accrued interest, customer deposits (excluding certificates of deposit, which are described further below), Travelers Cheques and other prepaid products outstanding, accounts payable, short-term borrowings and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Liabilities Carried At Other Than Fair Value Certificates of Deposit Certificates of deposit (CDs) are recorded at their historical issuance cost on the Consolidated Balance Sheets. Fair value is estimated using a discounted cash flow methodology based on the future cash flows and the discount rate that reflects the current market rates for similar types of CDs within similar markets. Long-term Debt Long-term debt is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for (i) unamortized discount and unamortized fees, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. The fair value of our long-term debt is measured using quoted offer prices when quoted market prices are available. If quoted market prices are not available, the fair value is determined by discounting the future cash flows of each instrument at rates currently observed in publicly-traded debt markets for debt of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly traded debt markets of similar terms and comparable credit risk, we use market interest rates and adjust those rates for necessary risks, including our own credit risk. In determining an appropriate spread to reflect our credit standing, we consider credit default swap spreads, bond yields of other long-term debt offered by us, and interest rates currently offered to us for similar debt instruments of comparable maturities. NONRECURRING FAIR VALUE MEASUREMENTS We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. We estimate the Level 3 fair value of equity investments without readily determinable fair values, which include investments in our Amex Ventures portfolio, based on price changes as of the date of new similar equity financing transactions completed by the companies in the portfolio. In addition, impairments on such investments are recorded to account for the difference between the estimated fair value and carrying value of an investment based on a qualitative assessment of impairment indicators such as business performance, general market conditions and the economic and regulatory environment. When an impairment triggering event occurs, the fair value measurement is generally derived by taking into account all available information, such as share prices of publicly traded peer companies, internal valuations performed by our investees, and other third-party fair value data. The fair value of impaired investments represents a Level 3 fair value measurement. The carrying value of equity investments without readily determinable fair values totaled $0.9 billion and $1.0 billion as of December 31, 2023 and 2022, respectively, of which approximately nil and $0.6 billion as of December 31, 2023 and 2022, respectively, represented a nonrecurring Level 3 fair value measurement for certain of our equity investments. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded unrealized gains of $18 million, $94 million and $729 million for the years ended December 31, 2023, 2022 and 2021, respectively. Unrealized losses were $142 million, $388 million and $2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Unrealized gains and losses are recorded in Other, net on the Consolidated Statements of Income. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion and $1.2 billion as of December 31, 2023 and 2022, respectively, and cumulative unrealized losses were $431 million and $394 million as of December 31, 2023 and 2022, respectively. In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both December 31, 2023 and 2022. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2023 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES The maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by us in the ordinary course of business were $1 billion and $24 million, respectively, as of December 31, 2023 and $1 billion and $21 million, respectively, as of December 31, 2022, all of which were primarily related to our real estate arrangements and business dispositions. To date, we have not experienced any significant losses related to guarantees or indemnifications. Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated. |
Common and Preferred Shares
Common and Preferred Shares | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Common and Preferred Shares | COMMON AND PREFERRED SHARES The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31: (Millions, except where indicated) 2023 2022 2021 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 743 761 805 Repurchases of common shares (22) (20) (46) Net shares issued for RSUs and stock option exercises (b) 2 2 2 Shares issued and outstanding as of December 31 723 743 761 (a) Of the common shares authorized but unissued as of December 31, 2023, approximately 16 million shares are reserved for issuance under employee stock and employee benefit plans. (b) Shares issued for RSUs are reported net of shares withheld for tax withholding obligations. On March 8, 2023, the Board of Directors authorized the repurchase of up to 120 million common shares from time to time, subject to market conditions and in accordance with our capital plans. This authorization replaced the prior repurchase authorization made on September 23, 2019. During 2023, 2022 and 2021, we repurchased 22 million common shares with a cost basis of $3.5 billion, 20 million common shares with a cost basis of $3.3 billion, and 46 million common shares with a cost basis of $7.6 billion, respectively. The cost basis includes excise tax and commissions of $32 million in 2023, and commissions of $4 million and $6 million in 2022 and 2021, respectively. As of December 31, 2023, we had approximately 99 million common shares remaining under the Board share repurchase authorization. Common shares are generally retired by us upon repurchase (except for 2.3 million, 2.4 million and 2.5 million shares held as treasury shares as of December 31, 2023, 2022 and 2021, respectively); retired common shares and treasury shares are excluded from the shares outstanding in the table above. The treasury shares, with a cost basis of $252 million, $262 million and $271 million as of December 31, 2023, 2022 and 2021, respectively, are included as a reduction to Additional paid-in capital in Shareholders’ equity on the Consolidated Balance Sheets. PREFERRED SHARES The Board of Directors may authorize the issuance of up to 20 million preferred shares at a par value of $1.66 2/3 per share without further shareholder approval. We have the following perpetual Fixed Rate Reset Noncumulative Preferred Share series issued and outstanding as of December 31, 2023: Series D Issuance date August 3, 2021 Securities issued 1,600 Preferred shares; represented by 1,600,000 depositary shares Dividend rate per annum 3.55% through September 14, 2026; resets September 15, 2026 and every subsequent 5-year anniversary at 5-year Treasury rate plus 2.854% Dividend payment date Quarterly beginning September 15, 2021 Earliest redemption date September 15, 2026 Aggregate liquidation preference $1,600 million Carrying value (a) $1,584 million (a) Carrying value, presented in the Statements of Shareholders’ Equity, represents the issuance proceeds, net of underwriting fees and offering costs. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the Company, the preferred shares then outstanding take precedence over our common shares for the payment of dividends and the distribution of assets out of funds legally available for distribution to shareholders. We may redeem the outstanding series of preferred shares at $1 million per preferred share (equivalent to $1,000 per depositary share) plus any declared but unpaid dividends in whole or in part, from time to time, on any dividend payment date on or after the earliest redemption date, or in whole, but not in part, within 90 days of certain bank regulatory changes. In 2021, we paid $1.6 billion to redeem in full the previously outstanding Series B and Series C preferred shares. The difference between the redemption value and carrying value of the redeemed Series B and Series C preferred shares resulted in a $16 million reduction to net income available to common shareholders for the year ended December 31, 2021. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AOCI is a balance sheet item in Shareholders’ equity on the Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three years ended December 31 were as follows: (Millions) , net of tax Net Unrealized Gains (Losses) on Debt Foreign Currency Translation Adjustment Gains (Losses), Net of Hedges (a) Net Unrealized Pension Accumulated Other Balances as of December 31, 2020 $ 65 $ (2,229) $ (731) $ (2,895) Net change (42) (163) 155 (50) Balances as of December 31, 2021 23 (2,392) (576) (2,945) Net change (87) (230) 52 (265) Balances as of December 31, 2022 (64) (2,622) (524) (3,210) Net change 50 51 37 138 Balances as of December 31, 2023 $ (14) $ (2,571) $ (487) $ (3,072) (a) Refer to Note 13 for additional information on hedging activity. The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2023 2022 2021 Net unrealized gains (losses) on debt securities $ 16 $ (27) $ (13) Foreign currency translation adjustment, net of hedges (158) 75 51 Pension and other postretirement benefits (3) 27 52 Total tax impact $ (145) $ 75 $ 90 Reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, for the years ended December 31, 2023, 2022 and 2021 were not significant. |
Service Fees and Other Revenue
Service Fees and Other Revenue and Other Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Service Fees and Other Revenue and Other Expenses [Abstract] | |
Service Fees and Other Revenue and Other Expenses | SERVICE FEES AND OTHER REVENUE AND OTHER EXPENSES The following is a detail of Service fees and other revenue for the years ended December 31: (Millions) 2023 2022 2021 Service fees $ 1,518 $ 1,444 $ 1,385 Foreign currency-related revenue 1,428 1,202 624 Delinquency fees 963 809 637 Travel commissions and fees 637 507 244 Other fees and revenues 459 559 426 Total Service fees and other revenue $ 5,005 $ 4,521 $ 3,316 The following is a detail of Other expenses for the years ended December 31: (Millions) 2023 2022 2021 Data processing and equipment $ 2,805 $ 2,606 $ 2,431 Professional services 2,029 2,074 1,958 Net unrealized and realized losses (gains) on Amex Ventures investments (a) 152 302 (767) Other 1,821 1,499 1,195 Total Other expenses $ 6,807 $ 6,481 $ 4,817 (a) Refer to Note 14 for further information regarding Amex Ventures investments accounted for as equity investments without readily determinable fair values. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Charges [Abstract] | |
Restructuring | RESTRUCTURING We periodically initiate restructuring programs to enhance our overall effectiveness and efficiency and to support new business strategies. These programs are generally completed within a year of when they are initiated. In connection with these programs, we will typically incur severance and other exit costs. We had $216 million, $135 million and $67 million accrued in total restructuring reserves as of December 31, 2023, 2022 and 2021, respectively. Restructuring expense, which primarily relates to new severance charges, net of revisions to existing reserves, was $179 million, $142 million and $(10) million for the years ended December 31, 2023, 2022 and 2021, respectively, and is included within Salaries and employee benefits |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2023 2022 2021 Current income tax expense: U.S. federal $ 2,455 $ 2,445 $ 1,656 U.S. state and local 351 339 351 Non-U.S. 662 476 328 Total current income tax expense 3,468 3,260 2,335 Deferred income tax (benefit) expense: U.S. federal (952) (763) 231 U.S. state and local (139) (117) 22 Non-U.S. (238) (309) 41 Total deferred income tax (benefit) expense (1,329) (1,189) 294 Total income tax expense $ 2,139 $ 2,071 $ 2,629 A reconciliation of the U.S. federal statutory rate of 21 percent as of December 31, 2023, 2022 and 2021, to our actual income tax rate was as follows: 2023 2022 2021 U.S. statutory federal income tax rate 21.0 % 21.0 % 21.0 % (Decrease) increase in taxes resulting from: Tax credits and tax-exempt income (0.7) (0.9) (0.1) State and local income taxes, net of federal benefit 2.4 3.1 3.0 Non-U.S. subsidiaries’ earnings (a) (0.8) (0.1) 1.1 Tax settlements and lapse of statute of limitations (2.0) (2.1) (0.3) Valuation allowances 0.1 (0.1) — Other 0.3 0.7 (0.1) Actual tax rates 20.3 % 21.6 % 24.6 % (a) In certain jurisdictions outside the United States, we benefit from agreements that temporarily lower our income tax expense. The impact of these agreements was not material to our Consolidated Statements of Income. We record a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2023 2022 Deferred tax assets: Reserves not yet deducted for tax purposes $ 4,552 $ 4,052 Employee compensation and benefits 335 353 Net operating loss and tax credit carryforwards 466 411 Capitalized developed software 743 — Other 723 776 Gross deferred tax assets 6,819 5,592 Valuation allowance (614) (537) Deferred tax assets after valuation allowance 6,205 5,055 Deferred tax liabilities: Intangibles and fixed assets 683 671 Deferred revenue 62 126 Deferred interest 114 118 Investment in joint ventures — 17 Other 566 618 Gross deferred tax liabilities 1,425 1,550 Net deferred tax assets $ 4,780 $ 3,505 The net operating loss and tax credit carryforward balance as of December 31, 2023, shown in the table above, is related to pre-tax U.S. federal and non-U.S. net operating loss (NOL) carryforwards of $13 million and $1.2 billion, respectively, and foreign tax credit (FTC) carryforwards of $132 million. If not utilized, certain U.S. federal and non-U.S. NOL carryforwards will expire between 2024 and 2034, whereas others have an unlimited carryforward period. The FTC carryforwards will expire between 2030 and 2034. A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances for both periods presented above are associated with certain non-U.S. deferred tax assets, state NOLs, and FTC carryforwards. Accumulated earnings of certain non-U.S. subsidiaries, which totaled approximately $1.1 billion as of December 31, 2023, are intended to be permanently reinvested outside the U.S. We do not provide for state income and foreign withholding taxes on foreign earnings intended to be permanently reinvested outside the U.S. Accordingly, state income and foreign withholding taxes, which would have aggregated to approximately $0.1 billion as of December 31, 2023, have not been provided on those earnings. Net income taxes paid by us during 2023, 2022 and 2021, were approximately $3.3 billion, $3.0 billion and $1.6 billion, respectively. These amounts include estimated tax payments and cash settlements relating to prior tax years. We are subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which we operate. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, we must make judgments in assessing the likelihood that a tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. We adjust the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. We are under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which we have significant business operations. The tax years under examination and open for examination vary by jurisdiction. We are currently under examination by the IRS for the 2017 and 2018 tax years. The following table presents changes in unrecognized tax benefits: (Millions) 2023 2022 2021 Balance, January 1 $ 962 $ 1,024 $ 790 Increases: Current year tax positions 132 119 64 Tax positions related to prior years 40 30 225 Decreases: Tax positions related to prior years (50) (30) (14) Settlements with tax authorities (160) (74) (15) Lapse of statute of limitations (49) (104) (17) Effects of foreign currency translations — (3) (9) Balance, December 31 $ 875 $ 962 $ 1,024 Included in the unrecognized tax benefits of $0.9 billion, $1.0 billion and $1.0 billion for December 31, 2023, 2022 and 2021, respectively, are approximately $670 million, $750 million and $780 million, respectively, that, if recognized, would favorably affect the effective tax rate in a future period. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next twelve months by as much as $117 million, principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $117 million of unrecognized tax benefits, approximately $92 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. For the years ended December 31, 2023, 2022 and 2021, we recognized approximately $30 million, $10 million and $40 million, respectively, in expenses for interest and penalties. We had approximately $410 million and $380 million accrued for the payment of interest and penalties as of December 31, 2023 and 2022, respectively. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | EARNINGS PER COMMON SHARE (EPS) The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2023 2022 2021 Numerator: Basic and diluted: Net income $ 8,374 $ 7,514 $ 8,060 Preferred dividends (58) (57) (71) Equity-related adjustments (a) — — (16) Net income available to common shareholders 8,316 7,457 7,973 Earnings allocated to participating share awards (b) (64) (57) (56) Net income attributable to common shareholders $ 8,252 $ 7,400 $ 7,917 Denominator: (b) Basic: Weighted-average common stock 735 751 789 Add: Weighted-average stock options (c) 1 1 1 Diluted 736 752 790 Basic EPS $ 11.23 $ 9.86 $ 10.04 Diluted EPS $ 11.21 $ 9.85 $ 10.02 (a) Represents the difference between the redemption value and carrying value of the Series C and Series B preferred shares, which were redeemed on September 15, 2021 and November 15, 2021, respectively. The carrying value represents the original issuance proceeds, net of underwriting fees and offering costs for the preferred shares. (b) Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. (c) The dilutive effect of unexercised stock options excludes from the computation of EPS 1.38 million, 0.39 million and 0.01 million of options for the years ended December 31, 2023, 2022 and 2021, respectively, because inclusion of the options would have been anti-dilutive. |
Regulatory Matters and Capital
Regulatory Matters and Capital Adequacy | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Regulatory Matters and Capital Adequacy | REGULATORY MATTERS AND CAPITAL ADEQUACY We are supervised and regulated by the Board of Governors of the Federal Reserve and are subject to the Federal Reserve’s requirements for risk-based capital and leverage ratios. Our U.S. bank subsidiary, AENB, is subject to supervision and regulation, including regulatory capital and leverage requirements, by the OCC. Under the risk-based capital guidelines of the Federal Reserve, we are required to maintain minimum ratios of CET1, Tier 1 and Total (Tier 1 plus Tier 2) capital to risk-weighted assets, as well as a minimum Tier 1 leverage ratio (Tier 1 capital to average adjusted on-balance sheet assets). Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional, discretionary actions by regulators, that, if undertaken, could have a direct material effect on our operating activities. As of December 31, 2023 and 2022, we met all capital requirements to which we were subject and maintained regulatory capital ratios in excess of those required to qualify as well capitalized. The following table presents the regulatory capital ratios: (Millions, except percentages) CET 1 Tier 1 capital Total capital CET 1 capital Tier 1 capital Total capital Tier 1 leverage December 31, 2023: (a) American Express Company $ 23,174 $ 24,779 $ 28,784 10.5 % 11.3 % 13.1 % 9.9 % American Express National Bank $ 17,038 $ 17,038 $ 19,548 11.6 % 11.6 % 13.3 % 9.5 % December 31, 2022: (a) American Express Company $ 20,030 $ 21,627 $ 24,926 10.3 % 11.1 % 12.8 % 9.9 % American Express National Bank $ 14,820 $ 14,820 $ 17,273 11.3 % 11.3 % 13.2 % 9.7 % Well-capitalized ratios (b) American Express Company N/A 6.0 % 10.0 % N/A American Express National Bank 6.5 % 8.0 % 10.0 % 5.0 % Minimum capital ratios (c) 4.5 % 6.0 % 8.0 % 4.0 % Effective Minimum (d) American Express Company 7.0 % 8.5 % 10.5 % 4.0 % American Express National Bank 7.0 % 8.5 % 10.5 % 4.0 % (a) Capital ratios reported using Basel III capital definitions and risk-weighted assets using the Basel III standardized approach. (b) Represents requirements for bank holding companies and banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Reserve Regulation Y and the Federal Deposit Insurance Corporation Improvement Act, respectively. There is no CET1 capital ratio or Tier 1 leverage ratio requirement for a bank holding company to be considered “well capitalized.” (c) As defined by the regulations issued by the Federal Reserve and OCC. (d) Represents Basel III minimum capital requirement and applicable regulatory buffers as defined by the federal banking regulators, which includes the stress capital buffer for American Express Company and the capital conservation buffer for American Express National Bank. RESTRICTED NET ASSETS OF SUBSIDIARIES Certain of our subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on our shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. As of December 31, 2023, the aggregate amount of net assets of subsidiaries that are restricted to be transferred was approximately $13.6 billion. BANK HOLDING COMPANY DIVIDEND RESTRICTIONS We are limited in our ability to pay dividends by the Federal Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condition. Moreover, bank holding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, we are required to develop and maintain a capital plan, which includes planned dividends. We may be subject to limitations and restrictions on our dividends, if, among other things, (i) our regulatory capital ratios do not satisfy applicable minimum requirements and buffers or (ii) we are required to resubmit our capital plan. BANK DIVIDEND RESTRICTIONS In the year ended December 31, 2023, AENB paid dividends from retained earnings to its parent of $3.6 billion. AENB is limited in its ability to pay dividends by banking statutes, regulations and supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as AENB, from making dividend distributions if such distributions are not paid out of available retained earnings or would cause the institution to fail to meet capital adequacy standards. If AENB’s risk-based capital ratios do not satisfy minimum regulatory requirements and applicable buffers, it will face graduated constraints on dividends and other capital distributions. In determining the dividends to pay its parent, AENB must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, AENB’s banking regulators have authority to limit or prohibit the payment of a dividend by AENB under a number of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Significant Credit Concentratio
Significant Credit Concentrations | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Significant Credit Concentrations | SIGNIFICANT CREDIT CONCENTRATIONS Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to American Express’ total credit exposure. Our customers operate in diverse industries, economic sectors and geographic regions. The following table details our maximum credit exposure of the on-balance sheet assets by category as of December 31: (Billions) 2023 2022 Individuals: (a) $ 178 $ 156 United States 145 129 Outside the United States (b) 33 27 Institutions: Financial services (c) 12 11 Other (d) 17 17 Federal Reserve Bank 37 25 U.S. Government and agencies (e) 1 4 Total on-balance sheet $ 245 $ 213 (a) Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management. (b) The geographic regions with the largest concentration outside the United States include the United Kingdom, Japan, the European Union, Australia, Canada and Mexico. (c) Represents banks, broker-dealers, insurance companies and savings and loan associations, which are governed by institutional credit risk management. (d) Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. (e) Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities. Risk management for these balances is governed by our Asset and Liability Management Committee. As of December 31, 2023 and 2022, our most significant concentration of credit risk was with individuals. These amounts are generally advanced on an unsecured basis. However, we review each potential customer’s credit application and evaluate the applicant’s financial history and ability and willingness to repay. We also consider credit performance by customer tenure, industry and geographic location in managing credit exposure. As of December 31, 2023, we had approximately $398 billion of unused credit available to customers, approximately 80 percent of which was related to customers within the United States. As of December 31, 2022, we had approximately $350 billion of unused credit, primarily available to customers as part of established lending product agreements, of which approximately 80 percent was related to customers within the United States. Total unused credit does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Charge card products with no pre-set spending limits are not reflected in unused credit for either period. |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments and Geographic Operations | REPORTABLE OPERATING SEGMENTS AND GEOGRAPHIC OPERATIONS REPORTABLE OPERATING SEGMENTS We consider a combination of factors when evaluating the composition of our reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. The following is a brief description of the primary business activities of our four reportable operating segments: • U.S. Consumer Services (USCS), which issues a wide range of proprietary consumer cards and provides services to U.S. consumers, including travel and lifestyle services as well as banking and non-card financing products. • Commercial Services (CS), which issues a wide range of proprietary corporate and small business cards and provides services to U.S. businesses, including payment and expense management, banking and non-card financing products. CS also issues proprietary corporate cards and provides services to select global corporate clients. • International Card Services (ICS), which issues a wide range of proprietary consumer, small business and corporate cards outside the United States. ICS also provides services to our international customers, including travel and lifestyle services, and manages certain international joint ventures and our loyalty coalition businesses. • Global Merchant and Network Services (GMNS), which operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers (including our network partnership agreements in China), merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network. Corporate functions and certain other businesses and operations are included in Corporate & Other. The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the years ended December 31, 2023, 2022 and 2021: (Millions, except where indicated) USCS CS ICS GMNS Corporate & Other (a) Consolidated 2023 Total non-interest revenues $ 18,464 $ 12,931 $ 9,472 $ 6,620 $ (106) $ 47,381 Revenue from contracts with customers (b) 13,715 11,379 6,155 6,006 (37) 37,218 Interest income 12,336 3,328 2,076 57 2,186 19,983 Interest expense 2,684 1,483 1,118 (719) 2,283 6,849 Total revenues net of interest expense 28,116 14,776 10,430 7,396 (203) 60,515 Pretax income (loss) 5,433 2,861 973 3,656 (2,410) 10,513 Total assets (billions) $ 107 $ 55 $ 42 $ 24 $ 33 $ 261 2022 Total non-interest revenues $ 16,440 $ 12,196 $ 8,262 $ 6,123 $ (54) $ 42,967 Revenue from contracts with customers (b) 12,478 10,844 5,301 5,603 (7) 34,219 Interest income 8,457 2,070 1,453 23 655 12,658 Interest expense 983 697 654 (329) 758 2,763 Total revenues net of interest expense 23,914 13,569 9,061 6,475 (157) 52,862 Pretax income (loss) 5,400 2,880 578 2,954 (2,227) 9,585 Total assets (billions) $ 94 $ 51 $ 37 $ 20 $ 26 $ 228 2021 Total non-interest revenues $ 12,989 $ 9,833 $ 6,761 $ 5,021 $ 26 $ 34,630 Revenue from contracts with customers (b) 9,823 8,659 4,368 4,694 172 27,716 Interest income 6,328 1,408 1,116 16 165 9,033 Interest expense 395 330 442 (92) 208 1,283 Total revenues net of interest expense 18,922 10,911 7,435 5,129 (17) 42,380 Pretax income (loss) 5,958 2,936 929 1,874 (1,008) 10,689 Total assets (billions) $ 77 $ 45 $ 33 $ 15 $ 19 $ 189 (a) Corporate & Other includes adjustments and eliminations for intersegment activity. (b) Includes discount revenue, certain service fees and other revenue and processed revenues from customers. Total Revenues Net of Interest Expense We allocate discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the USCS, CS and ICS segments, discount revenue generally reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMNS segment, discount revenue generally reflects the network and acquirer component of the overall discount revenue being allocated. Net card fees, processed revenue and certain other revenues are directly attributable to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment funding requirements and internal funding rates. Provisions for Credit Losses The provisions for credit losses are directly attributable to the segment in which they are reported. Expenses Card Member rewards and Card Member services expenses are included in each segment based on the actual expenses incurred. Business development and Marketing expenses are included in each segment based on the actual expenses incurred. Global brand advertising is primarily allocated to the segments based on the relative levels of revenue. Salaries and employee benefits and other expenses reflect both costs incurred directly within each segment, as well as allocated expenses. The allocated expenses include service costs, which primarily reflect salaries and benefits associated with our technology and customer servicing groups, and overhead expenses. Service costs are allocated based on activities directly attributable to the segment, and overhead expenses are allocated based on the relative levels of revenue and Card Member loans and receivables. GEOGRAPHIC OPERATIONS The following table presents our total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment. (Millions) United States EMEA (a) APAC (a) LACC (a) Other Unallocated (b) Consolidated 2023 Total revenues net of interest expense $ 47,140 $ 5,633 $ 4,372 $ 3,571 $ (201) $ 60,515 Pretax income (loss) from continuing operations 10,717 854 592 760 (2,410) 10,513 2022 Total revenues net of interest expense $ 41,396 $ 4,871 $ 3,835 $ 2,917 $ (157) $ 52,862 Pretax income (loss) from continuing operations 10,383 550 376 500 (2,224) 9,585 2021 Total revenues net of interest expense $ 33,103 $ 3,643 $ 3,418 $ 2,238 $ (22) $ 42,380 Pretax income (loss) from continuing operations 10,325 460 420 494 (1,010) 10,689 (a) EMEA represents Europe, the Middle East and Africa; APAC represents Asia Pacific, Australia and New Zealand; and LACC represents Latin America, Canada and the Caribbean. (b) Other Unallocated includes net costs which are not directly allocated to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company | PARENT COMPANY PARENT COMPANY – CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31 (Millions) 2023 2022 2021 Revenues Non-interest revenues Other $ 407 $ 388 $ 343 Total non-interest revenues 407 388 343 Interest income 1,558 614 96 Interest expense 1,436 857 482 Total revenues net of interest expense 529 145 (43) Expenses Salaries and employee benefits 487 408 359 Other 408 372 346 Total expenses 895 780 705 Loss before income tax and equity in net income of subsidiaries (366) (635) (748) Income tax benefit (163) (244) (248) Equity in net income of subsidiaries and affiliates 8,577 7,905 8,560 Net income $ 8,374 $ 7,514 $ 8,060 Net unrealized pension and other postretirement benefits, net of tax 5 10 151 Other comprehensive income (loss), net 133 (275) (201) Comprehensive income $ 8,512 $ 7,249 $ 8,010 PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2023 2022 Assets Cash and cash equivalents $ 9,652 $ 8,188 Equity in net assets of subsidiaries and affiliates 28,019 24,702 Loans to subsidiaries and affiliates 25,471 22,658 Due from subsidiaries and affiliates 1,261 1,342 Other assets 349 156 Total assets 64,752 57,046 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 2,188 2,271 Due to subsidiaries and affiliates 555 632 Long-term debt 33,952 29,432 Total liabilities 36,695 32,335 Shareholders’ Equity Total shareholders’ equity 28,057 24,711 Total liabilities and shareholders’ equity $ 64,752 $ 57,046 PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2023 2022 2021 Cash Flows from Operating Activities Net income $ 8,374 $ 7,514 $ 8,060 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (8,577) (7,905) (8,560) Dividends received from subsidiaries and affiliates 5,326 5,549 9,102 Other operating activities, primarily with subsidiaries and affiliates 360 160 (305) Net cash provided by operating activities 5,483 5,318 8,297 Cash Flows from Investing Activities Net increase in loans to subsidiaries and affiliates (2,836) (4,850) (176) Investments in subsidiaries and affiliates — (1) (60) Net cash used in investing activities (2,836) (4,851) (236) Cash Flows from Financing Activities Net decrease in short-term debt from subsidiaries and affiliates — (136) (2,636) Proceeds from long-term debt 9,969 13,202 3,000 Payments of long-term debt (5,750) (5,675) (5,000) Issuance of American Express preferred shares — — 1,584 Redemption of American Express preferred shares — — (1,600) Issuance of American Express common shares 28 56 64 Repurchase of American Express common shares and other (3,650) (3,502) (7,652) Dividends paid (1,780) (1,565) (1,448) Net cash (used in) provided by financing activities (1,183) 2,380 (13,688) Net increase (decrease) in cash and cash equivalents 1,464 2,847 (5,627) Cash and cash equivalents at beginning of year 8,188 5,341 10,968 Cash and cash equivalents at end of year $ 9,652 $ 8,188 $ 5,341 Supplemental cash flow information Years Ended December 31 (Millions) 2023 2022 2021 Non-Cash Investing Activities Loans to subsidiaries and affiliates $ — $ — $ (1,787) Non-Cash Financing Activities Proceeds from long-term debt $ — $ — $ 1,787 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 8,374 | $ 7,514 | $ 8,060 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. We consolidate entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlling financial interest when we are able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, we are considered to hold a controlling financial interest when we are determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE. |
Foreign Currency | FOREIGN CURRENCY Transactions conducted in currencies other than the applicable functional currency of an entity are converted to the functional currency at the exchange rate on the transaction date. At the period end, monetary assets and liabilities are remeasured to the functional currency using period end rates. The resulting transaction gains and losses are recorded in Other, net expenses in the Consolidated Statements of Income. For subsidiaries where the functional currency is not the U.S. dollar, the monetary assets and liabilities and results of operations are translated for consolidation purposes into U.S. dollars at period-end rates for monetary assets and liabilities and generally at average rates for results of operations. The resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. |
Amounts Based on Estimates and Assumptions | AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member credit losses on loans and receivables, Membership Rewards liability, goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. |
Revenue | Revenue is recognized when obligations under the terms of a contract with our customers are satisfied. We are not required to disclose revenue that is expected to be recognized in future periods related to contracts that have an original expected duration of one year or less and contracts with variable consideration (e.g., discount revenue). Non-interest revenue expected to be recognized in future periods related to all other contracts with customers is not material. Discount Revenue Discount revenue represents the amount we earn and retain from the merchant payable for facilitating transactions between Card Members and merchants on payment products issued by American Express. The amount of fees charged for accepting our cards as payment, or merchant discount, varies with, among other factors, the industry in which the merchant conducts business, the merchant’s overall American Express-related transaction volume, the method of payment, the settlement terms with the merchant, the method of submission of transactions and, in certain instances, the geographic scope of the card acceptance agreement between the merchant and us (e.g., local or global) and the transaction amount. Discount revenue is generally recorded at the time the Card Member transaction occurs. Card acceptance agreements, which include the agreed-upon terms for charging the merchant discount fee, vary in duration. Our contracts with small- and mid-sized merchants generally have no fixed contractual duration, while those with large merchants are generally for fixed periods, which typically range from three In cases where the merchant acquirer is a third party, we receive a network rate fee in our settlement with the merchant acquirer, which is negotiated between us and that merchant acquirer and is recorded as discount revenue at the time the Card Member transaction occurs. Net Card Fees Net card fees represent revenue earned from annual card membership fees, which vary based on the type of card and the number of cards for each account. These fees, net of acquisition costs and a reserve for projected refunds for Card Member cancellations, are deferred and recognized on a straight-line basis over the twelve-month card membership period as Net card fees in the Consolidated Statements of Income and are therefore more stable in relation to short term business or economic shifts. The unamortized net card fee balance is reported in Other liabilities on the Consolidated Balance Sheets. Service Fees and Other Revenue Service fees and other revenue includes service fees earned from merchants and other customers and travel commissions and fees, which are generally recognized in the period when the service is performed, and delinquency and foreign currency-related fees, which are primarily recognized in the period when they are charged to the Card Member. In addition, Service fees and other revenue includes income (losses) from our investments in which we have significant influence and therefore account for under the equity method. Refer to Note 18 for additional information. Processed Revenue Processed revenue primarily represents revenues related to network partnership agreements, comprising royalties, fees and amounts earned for facilitating transactions on cards issued by network partners. In our role as the operator of the American Express network, we settle with merchants and our third-party merchant acquirers on behalf of our network card issuing partners. The amount of fees charged for accepting American Express-branded cards is generally deducted from the payment to the merchant or third-party merchant acquirer and recorded as Processed revenue at the time the Card Member transaction occurs. Our network card issuing partners receive an issuer rate that is individually negotiated between that issuer and us and is recorded as contra-revenue within Processed revenue to the extent that there is revenue from the same customer, after which any additional issuer rate is recorded as expense in Business development. Processed revenue also includes fees related to alternative payment solutions, which are generally recognized when the service is performed. Contra-revenue Payments made pursuant to contractual arrangements with our merchants, network partners and other customers are classified as contra-revenue, except where we receive goods, services or other benefits for which the fair value is determinable and measurable, in which case they are recorded as expense. Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is paid, or written off. Interest and dividends on investment securities primarily relate to our performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it becomes likely that future interest payments will not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts. |
Interest Expense | Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions and (ii) debt, which primarily relates to interest expense on our long-term debt and short-term borrowings, as well as the realized impact of derivatives used to hedge interest rate risk on our long-term debt. |
Expenses | Card Member Rewards We issue credit, charge and debit cards that allow Card Members to participate in various rewards programs (e.g., Membership Rewards, cash back and cobrand). Rewards expense is recognized in the period Card Members earn rewards, generally by spending on their enrolled card products. For Membership Rewards and cash back, we record a liability that represents the rewards that are expected to be redeemed, as well as, for Membership Rewards, the estimated cost of points earned. For cobrand, we record a liability based primarily on rewards earned on Card Member spending on cobrand cards, and make associated payments to our cobrand partners. The partner is liable for providing rewards to the Card Member under the cobrand partner’s own loyalty program. Card Member rewards liabilities are impacted over time by enrollment levels, attrition, the volume of points earned and redeemed, and the associated redemption costs. Changes in the Card Member rewards liabilities during the period are taken as an increase or decrease to the Card Member rewards expense in the Consolidated Statements of Income. Business Development Business development expense includes payments to our cobrand partners, corporate client incentive payments earned on achievement of pre-set targets and certain payments to network partners. These costs are generally expensed as incurred. Card Member Services Card Member services expense represents costs incurred in providing our Card Members with various value-added benefits and services, which are generally expensed as incurred. Marketing Marketing expense includes costs incurred in the development and initial placement of advertising, which are expensed in the period in which the advertising first takes place. All other marketing expenses are generally expensed as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements, restricted cash, and other highly liquid investments with original maturities of 90 days or less. Restricted cash primarily represents amounts related to Card Member credit balances as well as upcoming debt maturities of consolidated VIEs. |
Goodwill | Goodwill Goodwill represents the excess of the acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. We allocate goodwill to our reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment, for which discrete financial information is regularly reviewed by the operating segment manager. Prior to completing the annual assessment of goodwill for impairment, we perform a recoverability test of certain long-lived assets. We have historically evaluated goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of our reporting units below its carrying value. In the fourth quarter of 2023, we changed our annual impairment assessment date to November 1 for all reporting units. The change in the annual testing date for goodwill impairment is considered a change in accounting principle, which we believe is preferable as the new date better aligns with our long-term planning and forecasting process. We have determined that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of each November 1 of the prior reporting periods without the use of hindsight. As such, we prospectively applied the change in annual goodwill impairment testing date beginning November 1, 2023. The change in assessment date did not delay, accelerate or avoid a potential impairment charge. We have the option to perform a qualitative assessment of goodwill impairment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Alternatively, we can perform a more detailed quantitative assessment of goodwill impairment. This qualitative assessment entails the evaluation of factors such as economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other company and reporting unit-specific events. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then perform the impairment evaluation using the quantitative assessment. The quantitative assessment compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds the reporting unit’s fair value, an impairment loss is recognized for the amount over and above the reporting unit’s fair value. When measuring the fair value of our reporting units in the quantitative assessment, we use widely accepted valuation techniques, applying a combination of the income approach (discounted cash flows) and market approach (market multiples). When preparing discounted cash flow models under the income approach, we use internal forecasts to estimate future cash flows expected to be generated by the reporting units. To discount these cash flows, we use the expected cost of equity, determined by using a capital asset pricing model. We believe the discount rates appropriately reflect the risks and uncertainties in the financial markets generally and specifically in our internally-developed forecasts. When using market multiples under the market approach, we apply comparable publicly traded companies’ multiples (e.g., earnings or revenues) to our reporting units’ operating results. During the year ended December 31, 2023, we performed assessments for each reporting unit in connection with our annual goodwill impairment evaluation as of both June 30, 2023 and November 1, 2023, in accordance with the change in goodwill impairment testing date. As of both testing dates, we determined that it was more likely than not that the fair values of each of our reporting units exceeded their carrying values and accordingly no impairment was recognized. In addition, during the year ended December 31, 2022, we performed a quantitative goodwill impairment assessment for those reporting units which were impacted by the realignment of our operating segments and concluded that their fair values exceeded their carrying values. OTHER INTANGIBLE ASSETS Intangible assets are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at the acquisition date. Certain costs associated with the acquisition or development of internal-use software are also capitalized and recorded in Premises and equipment. Once the specific software feature is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years. We review these assets for impairment using the same impairment methodology used for our intangible assets. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and range from 5 to 10 years. We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term. |
Leases | Leases We have operating leases worldwide for facilities and equipment, which, for those leases with terms greater than 12 months, are recorded as lease-related assets and liabilities. We do not separate lease and non-lease components. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs and lease incentives. Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. |
Classification of Various Items | CLASSIFICATION OF VARIOUS ITEMS Certain reclassifications of prior period amounts have been made to conform to the current period presentation. |
Recently Adopted and Issued Accounting Standards | RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS Effective January 1, 2023, we adopted new accounting guidance on troubled debt restructurings (TDR) and vintage disclosures on a prospective basis. The new guidance eliminated the existing TDR guidance for those entities that have adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, created a single loan modification accounting model and enhanced disclosure requirements for loan modifications and write-offs. The implementation did not have a material impact to our Consolidated Financial Statements. Refer to Note 2 for further information, including the enhanced disclosures. In March 2023, the Financial Accounting Standards Board issued updated accounting guidance to allow the proportional amortization method (PAM) to be applied to tax credit structures beyond low-income housing tax credit (LIHTC) investments. Having implemented PAM in relation to LIHTC investments in January 2021, we early adopted the updated guidance with respect to other qualifying investments in the fourth quarter of 2023. The impact of this change is immaterial to our Consolidated Financial Statements, therefore we implemented the updated guidance on a prospective basis. In November 2023, the Financial Accounting Standards Board issued updated accounting guidance for Segment Reporting, effective January 1, 2024, with early adoption permitted. The updated guidance requires enhanced disclosures for significant expenses by reportable operating segment. Significant expense categories and amounts are those regularly provided to the chief operating decision maker (CODM) and included in the measure of a segment’s profit or loss. The updated guidance will also require us to disclose the title and position of our CODM, including an explanation of how our CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. We plan to adopt the new standard for the annual reporting period beginning January 1, 2024, and for interim periods beginning January 1, 2025. The updated guidance is not expected to have a material impact to our Consolidated Financial Statements. In December 2023, the Financial Accounting Standards Board issued updated accounting guidance on Disclosures for Income Taxes, effective January 1, 2025, with early adoption permitted. The updated guidance requires additional disclosure and disaggregated information in the Income Tax Rate reconciliation using both percentages and reporting currency amounts, with additional qualitative explanations of individually significant reconciling items. The updated guidance also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by jurisdictional categories (federal (national), state and foreign). We are currently assessing the updated guidance, however it is not expected to have a material impact to our Consolidated Financial Statements. |
Card Member and Other Loans, Card Member Receivables and Reserve for Credit Losses | CARD MEMBER AND OTHER LOANS Card Member loans are generally recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolve-eligible transactions on our card products, as well as any finance charges and associated card-related fees. Card Members with outstanding revolving loans are required to make a minimum monthly payment, and the balances that Card Members choose to revolve are subject to finance charges. These loans have varying terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members and in accordance with applicable regulations and the respective product’s terms and conditions. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued interest and fees. Our policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that we believe will not be collected. Other loans are recorded at the time any extension of credit is provided to consumer and commercial customers for non-card financing products. These loans have a range of fixed terms such as interest rates, fees and repayment periods. Borrowers are typically required to make pre-established monthly payments over the term of the loan. Non-card financing products are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship. Other loans are presented on the Consolidated Balance Sheets net of reserves for credit losses and include principal and any related accrued interest and fees. CARD MEMBER RECEIVABLES Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on our card products and card-related fees that need to be paid in full on or before the Card Member’s payment due date. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued fees. Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The CECL methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses . We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD) and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates. • PD models are used to estimate the likelihood an account will be written-off. • EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors. • Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions. We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions, even if such expected recoveries exceed expected losses. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses. This history includes the performance of loans and receivables modifications for borrowers experiencing financial difficulty, including their subsequent defaults. Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios each period and assigns probability weights to each scenario, generally with a consistent initial distribution. At times, due to macroeconomic uncertainty and volatility, management may apply judgment and assign different probability weights to scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models. We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions. Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually and incorporate a discounted cash flow model. See Note 2 for information on TDRs. |
Investment Securities | Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. The methodology for estimating credit losses for available for sale debt securities requires us to estimate lifetime credit losses for all available-for-sale debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, we assess the security’s credit indicators, including credit ratings. If our assessment indicates that an estimated credit loss exists, we determine the portion of the unrealized loss attributable to credit deterioration and record a reserve for the estimated credit loss through the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. |
Asset Securitizations | We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors. The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. Refer to Note 1 for further details on the principles of consolidation. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. Our ownership of variable interests in the Lending Trust was $15.3 billion and $16.0 billion as of December 31, 2023 and 2022, respectively, and in the Charge Trust was $4.6 billion and $5.2 billion as of December 31, 2023 and 2022, respectively. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts and therefore consolidate the Trusts. The debt securities issued by the Trusts are non-recourse to us. The securitized Card Member loans and receivables held by the Lending Trust and the Charge Trust, respectively, are available only for payment of the debt securities or other obligations issued or arising in the securitization transactions (refer to Note 2). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 8). |
Other Assets | We account for such tax credit investments using the Proportional Amortization Method, which we elected to implement prospectively on January 1, 2021 for LIHTC investments and in the fourth quarter of 2023 for other qualifying investments. |
Membership Rewards | MEMBERSHIP REWARDS The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad variety of rewards including, but not limited to, travel, shopping, gift cards, and covering eligible charges. We record a Membership Rewards liability that represents our best estimate of the cost of points earned that are expected to be redeemed by Card Members in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are the key assumptions used to estimate the liability. We use statistical and actuarial models to estimate the URR based on redemption trends, card product type, enrollment tenure, card spend levels and credit attributes. The WAC per point assumption is derived from 12 months of redemptions and is adjusted as appropriate for certain changes in redemption costs that are not representative of future cost expectations and expected developments in redemption patterns. The expense for Membership Rewards points is included in Card Member rewards expense. We periodically evaluate our liability estimation process and assumptions based on changes in cost per point redeemed, partner contract changes and developments in redemption patterns, which may be impacted by product refreshes, changes in redemption options and mix of proprietary cards-in-force. |
Stock-based Compensation | Stock-based compensation expense is generally recognized ratably based on the grant-date fair value of the awards, net of expected forfeitures, over the vesting period. Generally, the vesting period is the time from the grant date to the earlier of the vesting date defined in each award agreement or the date the colleague will become eligible to retire. Retirement eligibility is dependent upon age and/or years of service. |
Retirement Plans | We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the Consolidated Balance Sheets. |
Legal Contingencies | We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. For those disclosed legal proceedings where a loss is reasonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies, or where there is no such accrual, and for which we are able to estimate a range of possible loss, the current estimated range is zero to $400 million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business and results of operations. |
Derivatives and Hedging Activities | A majority of our derivative assets and liabilities as of December 31, 2023 and 2022 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets. Our derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below.We formally assess, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, we will discontinue the application of hedge accounting.Gains or losses on the fair value hedging instrument principally offset the losses or gains on the hedged item attributable to the hedged risk.We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We have derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified date. |
Fair Value Measurements | We monitor the market conditions and evaluate the fair value hierarchy levels at least quarterly. We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. We estimate the Level 3 fair value of equity investments without readily determinable fair values, which include investments in our Amex Ventures portfolio, based on price changes as of the date of new similar equity financing transactions completed by the companies in the portfolio. In addition, impairments on such investments are recorded to account for the difference between the estimated fair value and carrying value of an investment based on a qualitative assessment of impairment indicators such as business performance, general market conditions and the economic and regulatory environment. When an impairment triggering event occurs, the fair value measurement is generally derived by taking into account all available information, such as share prices of publicly traded peer companies, internal valuations performed by our investees, and other third-party fair value data. The fair value of impaired investments represents a Level 3 fair value measurement. The carrying value of equity investments without readily determinable fair values totaled $0.9 billion and $1.0 billion as of December 31, 2023 and 2022, respectively, of which approximately nil and $0.6 billion as of December 31, 2023 and 2022, respectively, represented a nonrecurring Level 3 fair value measurement for certain of our equity investments. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded unrealized gains of $18 million, $94 million and $729 million for the years ended December 31, 2023, 2022 and 2021, respectively. Unrealized losses were $142 million, $388 million and $2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Unrealized gains and losses are recorded in Other, net on the Consolidated Statements of Income. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion and $1.2 billion as of December 31, 2023 and 2022, respectively, and cumulative unrealized losses were $431 million and $394 million as of December 31, 2023 and 2022, respectively. In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both December 31, 2023 and 2022. |
Guarantees | Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated. |
Income Taxes | We record a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances for both periods presented above are associated with certain non-U.S. deferred tax assets, state NOLs, and FTC carryforwards. |
Income Tax Uncertainties | The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. We adjust the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. |
Regulatory Matters and Capital Adequacy | RESTRICTED NET ASSETS OF SUBSIDIARIES Certain of our subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on our shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. As of December 31, 2023, the aggregate amount of net assets of subsidiaries that are restricted to be transferred was approximately $13.6 billion. BANK HOLDING COMPANY DIVIDEND RESTRICTIONS We are limited in our ability to pay dividends by the Federal Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condition. Moreover, bank holding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, we are required to develop and maintain a capital plan, which includes planned dividends. We may be subject to limitations and restrictions on our dividends, if, among other things, (i) our regulatory capital ratios do not satisfy applicable minimum requirements and buffers or (ii) we are required to resubmit our capital plan. BANK DIVIDEND RESTRICTIONS In the year ended December 31, 2023, AENB paid dividends from retained earnings to its parent of $3.6 billion. AENB is limited in its ability to pay dividends by banking statutes, regulations and supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as AENB, from making dividend distributions if such distributions are not paid out of available retained earnings or would cause the institution to fail to meet capital adequacy standards. If AENB’s risk-based capital ratios do not satisfy minimum regulatory requirements and applicable buffers, it will face graduated constraints on dividends and other capital distributions. In determining the dividends to pay its parent, AENB must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, AENB’s banking regulators have authority to limit or prohibit the payment of a dividend by AENB under a number of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Segment Reporting | We consider a combination of factors when evaluating the composition of our reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. Total Revenues Net of Interest Expense We allocate discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the USCS, CS and ICS segments, discount revenue generally reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMNS segment, discount revenue generally reflects the network and acquirer component of the overall discount revenue being allocated. Net card fees, processed revenue and certain other revenues are directly attributable to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment funding requirements and internal funding rates. Provisions for Credit Losses The provisions for credit losses are directly attributable to the segment in which they are reported. Expenses Card Member rewards and Card Member services expenses are included in each segment based on the actual expenses incurred. Business development and Marketing expenses are included in each segment based on the actual expenses incurred. Global brand advertising is primarily allocated to the segments based on the relative levels of revenue. Salaries and employee benefits and other expenses reflect both costs incurred directly within each segment, as well as allocated expenses. The allocated expenses include service costs, which primarily reflect salaries and benefits associated with our technology and customer servicing groups, and overhead expenses. Service costs are allocated based on activities directly attributable to the segment, and overhead expenses are allocated based on the relative levels of revenue and Card Member loans and receivables. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of other significant accounting policies | The following table identifies our other significant accounting policies, along with the related Note. Significant Accounting Policy Note Note Title Loans and Card Member Receivables Note 2 Loans and Card Member Receivables Reserves for Credit Losses Note 3 Reserves for Credit Losses Investment Securities Note 4 Investment Securities Asset Securitizations Note 5 Asset Securitizations Legal Contingencies Note 12 Contingencies and Commitments Derivative Financial Instruments and Hedging Activities Note 13 Derivatives and Hedging Activities Fair Value Measurements Note 14 Fair Values Guarantees Note 15 Guarantees Income Taxes Note 20 Income Taxes |
Loans and Card Member Receiva_2
Loans and Card Member Receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Card member and other loan detail | Card Member and Other loans as of December 31, 2023 and 2022 consisted of: (Millions) 2023 2022 Consumer (a) $ 98,111 $ 84,964 Small Business 27,833 22,947 Corporate 51 53 Card Member loans 125,995 107,964 Less: Reserves for credit losses 5,118 3,747 Card Member loans, net $ 120,877 $ 104,217 Other loans, net (b) $ 6,960 $ 5,357 (a) Includes approximately $28.6 billion and $28.5 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2023 and 2022, respectively. (b) Other loans are presented net of reserves for credit losses of $126 million and $59 million as of December 31, 2023 and 2022, respectively. Card Member receivables as of December 31, 2023 and 2022 consisted of: (Millions) 2023 2022 Consumer $ 25,578 $ 22,885 Small Business 19,286 19,629 Corporate (a) 15,547 15,099 Card Member receivables 60,411 57,613 Less: Reserves for credit losses 174 229 Card Member receivables, net $ 60,237 $ 57,384 (a) Includes $4.6 billion and $5.2 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2023 and 2022, respectively. |
Aging of receivables | The following table presents the aging of Card Member loans and receivables as of December 31, 2023 and 2022: 2023 ( Millions ) Current 30-59 60-89 90+ Total 90+ Days Past Due and Still Accruing Interest (c) Non-Accruals (d) Card Member Loans: Consumer $ 96,779 $ 420 $ 298 $ 614 $ 98,111 $ 393 $ 344 Small Business 27,444 133 85 171 27,833 109 95 Corporate (a) (b) (b) (b) — 51 — — Card Member Receivables: Consumer 25,355 70 47 106 25,578 — — Small Business $ 19,020 $ 104 $ 62 $ 100 $ 19,286 $ — $ — Corporate (a) (b) (b) (b) $ 67 $ 15,547 $ — $ — 2022 ( Millions ) Current 30-59 60-89 90+ Total Card Member Loans: Consumer $ 84,102 $ 281 $ 198 $ 383 $ 84,964 Small Business 22,731 81 49 86 22,947 Corporate (a) (b) (b) (b) — 53 Card Member Receivables: Consumer 22,634 83 56 112 22,885 Small Business $ 19,330 $ 120 $ 69 110 19,629 Corporate (a) (b) (b) (b) $ 85 $ 15,099 (a) For corporate accounts, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b). (b) Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. (c) Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. (d) Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. |
Credit quality indicators for loans and receivables | The following tables present the key credit quality indicators as of or for the years ended December 31: 2023 2022 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Principal Only (a) Principal, Interest & Fees (a) 30+ Card Member Loans: Consumer 1.8 % 2.2 % 1.4 % 0.9 % 1.2 % 1.0 % Small Business 1.7 % 1.9 % 1.4 % 0.7 % 0.8 % 0.9 % Card Member Receivables: Consumer 1.5 % 1.6 % 0.9 % 0.8 % 0.9 % 1.1 % Small Business 2.2 % 2.4 % 1.4 % 1.1 % 1.2 % 1.5 % Corporate (b) 0.6 % (c) (b) 0.4 % (c) (a) We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (b) Net write-off rate based on principal losses only is not available due to system constraints. (c) For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ days past billing as a % of total was 0.4% and 0.6% as of December 31, 2023 and 2022, respectively. |
Modifications of loans and receivables | The following table provides information relating to loans and receivables modifications for borrowers experiencing financial difficulty during the year ended December 31, 2023: As of December 31, 2023 2023 ( Millions ) Account Balances ( Millions ) (a) % of Total Class of Weighted Average Interest Rate Reduction Weighted Average Payment Interest Rate Reduction Card Member Loans Consumer $ 1,572 1.6 % 16.4 % (b) Small Business 550 2.0 % 15.9 % (b) Corporate — — — (b) Term Extension Card Member Receivables Consumer 346 1.4 % (c) 27 Small Business 543 2.8 % (c) 28 Corporate 13 0.1 % (c) 9 Other Loans 23 0.3 % — 18 Interest Rate Reduction Other Loans $ 42 0.6 % 2.1 % 20 Total $ 3,089 (a) Represents the outstanding balances as of December 31, 2023 of all modifications undertaken in the last year for loans and receivables that remain in modification programs as of, or that defaulted on or before, December 31, 2023. The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance. (b) For Card Member loans, there have been no payment term extensions. (c) We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information with respect to loans and receivables modified on or after January 1, 2023 that subsequently defaulted in the period presented. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. As of December 31, 2023 Account Balance ( Millions ) (a) Interest Rate Reduction Term Extension Interest Rate Reduction and Term Extension Total Card Member Loans Consumer $ 53 (b) $ — $ 53 Small Business 20 (b) — 20 Corporate — (b) — — Card Member Receivables Consumer (c) 9 — 9 Small Business (c) 14 — 14 Corporate (c) — — — Other Loans — — 1 1 Total $ 73 $ 23 $ 1 $ 97 (a) Represents the outstanding balances as of December 31, 2023 of all modifications undertaken on or after January 1, 2023 and subsequently defaulted in the past year. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. (b) For Card Member loans, there have been no payment term extensions. (c) We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information relating to the performance of loans and receivables that were modified on or after January 1, 2023. As of December 31, 2023 Account Balances ( Millions ) (a) Current 30-89 Days Past Due 90+ Days Past Due Card Member Loans Consumer $ 1,433 $ 103 $ 36 Small Business 489 45 16 Corporate — — — Card Member Receivables: Consumer 314 25 7 Small Business 479 52 12 Corporate 11 2 — Other Loans 59 4 2 Total $ 2,785 $ 231 $ 73 (a) Represents the outstanding balances as of December 31, 2023 of all modifications undertaken on or after January 1, 2023 for loans and receivables that remain in modification programs as of, or that defaulted on or before, December 31, 2023. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables The following tables provide additional information with respect to loans and receivables that were modified as TDRs during the years ended December 31, 2022 and 2021: 2022 Number of Accounts (Thousands) Account Balances (Millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 149 $ 1,002 14 (b) Card Member Receivables 27 900 (c) 20 Other Loans (d) 4 $ 8 2 17 Total 180 $ 1,910 2021 Number of Accounts (Thousands) Account Balances (Millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 112 $ 789 13 (b) Card Member Receivables 21 437 (c) 18 Other Loans (d) 4 $ 13 3 16 Total 137 $ 1,239 (a) Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance. (b) For Card Member loans, there have been no payment term extensions. (c) We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. (d) Other loans primarily represent consumer and commercial non-card financing products. |
Impaired card member loans and receivables | The following tables provide additional information with respect to our impaired loans and receivables as of December 31, 2022 and 2021: As of December 31, 2022 Accounts Classified as a TDR (c) 2022 (Millions) Over 90 days Past Due & Accruing Interest (a) Non- Accruals (b) In Program (d) Out of Program (e) Total Reserve for Credit Card Member Loans Consumer 252 155 781 1,098 2,286 335 Small Business 54 34 267 380 735 108 Corporate — — — — — — Card Member Receivables Consumer — — 257 179 436 20 Small Business — — 403 402 805 40 Corporate — — 6 7 13 1 Other Loans 3 2 19 2 26 — Total 309 $ 191 1,733 $ 2,068 $ 4,301 $ 504 As of December 31, 2021 Accounts Classified as a TDR (c) 2021 (Millions) Over 90 days Past Due & Accruing Interest (a) Non- Accruals (b) In Program (d) Out of Program (e) Total Reserve for Credit Card Member Loans Consumer 149 82 708 997 1,936 415 Small Business 19 14 176 332 541 132 Corporate — — — — — — Card Member Receivables Consumer — — 133 130 263 9 Small Business — — 247 297 544 39 Corporate — — 1 6 7 — Other Loans 1 — 67 2 70 1 Total 169 $ 96 1,332 $ 1,764 $ 3,361 $ 596 (a) Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR. (b) Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs. (c) Accounts classified as a TDR include $48 million and $41 million that were over 90 days past due and accruing interest and $17 million and $19 million that were non-accruals as of December 31, 2022 and 2021, respectively. (d) In Program TDRs include accounts that are currently enrolled in a modification program. (e) Out of Program TDRs include $1,922 million and $1,621 million of accounts that have successfully completed a modification program and $146 million and $143 million of accounts that were not in compliance with the terms of the modification programs as of December 31, 2022 and 2021, respectively. |
Troubled debt restructurings on financing receivables with subsequent default | The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. 2022 Number of Accounts (Thousands) Aggregated Outstanding Balances Upon Default (Millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 14 $ 81 Card Member Receivables 3 38 Other Loans (b) 1 1 Total 18 $ 120 2021 Number of Accounts (Thousands) Aggregated Outstanding Balances Upon Default (Millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 24 $ 174 Card Member Receivables 5 56 Other Loans (b) 3 9 Total 32 $ 239 (a) The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables. (b) Other loans primarily represent consumer and commercial non-card financing products. |
Reserves for Credit Losses (Tab
Reserves for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule of key variables in macroeconomic scenarios utilized for computation of reserves for credit losses | The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses: U.S. Unemployment Rate U.S. GDP Growth (Contraction) (a) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Fourth quarter of 2023 4% 3% - 8% 1% 6% - 0.2% First quarter of 2024 3% - 6% 3% - 8% 4% - (3)% 2% - 0.3% Fourth quarter of 2024 3% - 8% 3% - 7% 3% - 1% 3% - 2% Fourth quarter of 2025 3% - 7% 3% - 6% 2% 4% - 3% (a) Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates. |
Schedule of changes in card member loans and receivables | The following table presents changes in the Card Member loans reserve for credit losses for the years ended December 31: (Millions) 2023 2022 2021 Beginning Balance $ 3,747 $ 3,305 $ 5,344 Provisions (a) 3,839 1,514 (1,155) Net write-offs (b) Principal (2,043) (837) (672) Interest and fees (443) (229) (207) Other (c) 18 (6) (5) Ending Balance $ 5,118 $ 3,747 $ 3,305 (a) Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (b) Principal write-offs are presented less recoveries of $537 million, $539 million and $657 million for the years ended December 31, 2023, 2022 and 2021, respectively. Recoveries of interest and fees were not significant. (c) Primarily includes foreign currency translation adjustments of $18 million for the year ended December 31, 2023, and $(6) million for both the years ended December 31, 2022 and 2021. The following table presents changes in the Card Member receivables reserve for credit losses for the years ended December 31: (Millions) 2023 2022 2021 Beginning Balance $ 229 $ 64 $ 267 Provisions (a) 880 627 (73) Net write-offs (b) (937) (462) (129) Other (c) 2 — (1) Ending Balance $ 174 $ 229 $ 64 (a) Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (b) Net write-offs are presented less recoveries of $297 million, $257 million and $378 million for the years ended December 31, 2023, 2022 and 2021, respectively. (c) Primarily includes foreign currency translation adjustments of $1 million, $2 million and $(1) million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available for sale securities by type | The following is a summary of investment securities as of December 31: 2023 2022 Description of Securities (Millions) Cost Gross Gross Estimated Cost Gross Gross Estimated Available-for-sale debt securities: State and municipal obligations $ 61 $ — $ (6) $ 55 $ 64 $ — $ (10) $ 54 U.S. Government agency obligations 4 — — 4 5 — — 5 U.S. Government treasury obligations 1,217 1 (12) 1,206 3,859 — (73) 3,786 Mortgage-backed securities (a) 12 — (1) 11 13 — — 13 Foreign government bonds and obligations 770 — — 770 633 — (1) 632 Other (b) 74 — — 74 47 — — 47 Equity securities (c)(d) 60 16 (10) 66 50 — (9) 41 Total $ 2,198 $ 17 $ (29) $ 2,186 $ 4,671 $ — $ (93) $ 4,578 (a) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (b) Represents investments in debt securities issued by Community Development Financial Institutions. (c) Equity securities comprise investments in common stock, exchange-traded funds and mutual funds. (d) During the third quarter of 2023, certain equity securities were reclassified from Other assets to Investment securities following the completion of transactions pursuant to which the issuers of the securities became public companies. The investments had a fair value of $24 million with an associated cost basis of $10 million as of December 31, 2023. The gross unrealized gain and loss amounts include net unrealized gains of $37 million that were recognized prior to such transactions. |
Available-for-sale securities, continuous unrealized loss position, fair value | The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and 2022: 2023 2022 Less than 12 months 12 months or more Less than 12 months 12 months or more Description of Securities (Millions) Estimated Gross Unrealized Estimated Gross Unrealized Estimated Gross Unrealized Estimated Gross Unrealized State and municipal obligations $ — $ — $ 33 $ (6) $ 52 $ (10) $ — $ — U.S. Government treasury obligations — — 1,114 (12) 3,710 (72) 52 (1) Mortgage-backed securities — — 7 (1) — — — — Foreign government bonds and obligations — — — — 549 (1) — — Total $ — $ — $ 1,154 $ (19) $ 4,311 $ (83) $ 52 $ (1) |
Available for sale securities ratio of fair value to amortized cost | The following table summarizes the gross unrealized losses for available-for-sale debt securities by ratio of fair value to amortized cost as of December 31, 2023 and 2022: Less than 12 months 12 months or more Total Ratio of Fair Value to Amortized Cost (Dollars in millions) Number of Estimated Gross Number of Estimated Gross Number of Estimated Gross 2023: 90%–100% — $ — $ — 69 $ 1,140 $ (14) 69 $ 1,140 $ (14) Less than 90% — — — 2 14 (5) 2 14 (5) Total as of December 31, 2023 — $ — $ — 71 $ 1,154 $ (19) 71 $ 1,154 $ (19) 2022: 90%–100% 74 $ 4,287 $ (74) 3 $ 52 $ (1) 77 $ 4,339 $ (75) Less than 90% 14 24 (9) — — — 14 24 (9) Total as of December 31, 2022 88 $ 4,311 $ (83) 3 $ 52 $ (1) 91 $ 4,363 $ (84) |
Contractual maturities of investment securities | Weighted average yields and contractual maturities for available-for-sale debt securities with stated maturities as of December 31, 2023 were as follows: (Millions) Due within 1 year Due after 1 year but within 5 years Due after 5 years but within 10 years Due after 10 years Total State and municipal obligations (a) $ — $ 1 $ 20 $ 34 $ 55 U.S. Government agency obligations (a) — — — 4 4 U.S. Government treasury obligations 1,010 194 2 — 1,206 Mortgage-backed securities (a)(b) — — — 11 11 Foreign government bonds and obligations 768 2 — — 770 Other (c) — 64 10 — 74 Total Estimated Fair Value $ 1,778 $ 261 $ 32 $ 49 $ 2,120 Total Cost $ 1,784 $ 265 $ 33 $ 56 $ 2,138 Weighted average yield (d) 4.68 % 3.17 % 4.76 % 2.80 % 4.44 % (a) The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. (b) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (c) Represents investments in debt securities issued by Community Development Financial Institutions. (d) Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Other assets | The following is a summary of Other assets as of December 31: (Millions) 2023 2022 Goodwill $ 3,851 $ 3,786 Other intangible assets, at amortized cost 98 146 Other (a) 15,165 13,757 Total $ 19,114 $ 17,689 (a) Primarily includes net deferred tax assets, other receivables net of reserves, investments in non-consolidated entities, prepaid assets, tax credit investments and right-of-use lease assets. |
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows: (Millions) USCS CS ICS GMNS Total Balance as of December 31, 2021 $ 368 $ 2,123 $ 753 $ 560 $ 3,804 Acquisitions 13 — — — 13 Dispositions — — — — — Other (a) (2) (1) (28) — (31) Balance as of December 31, 2022 $ 379 $ 2,122 $ 725 $ 560 $ 3,786 Acquisitions — 30 — 18 48 Dispositions — — — — — Other (a) — (1) 18 — 17 Balance as of December 31, 2023 $ 379 $ 2,151 $ 743 $ 578 $ 3,851 (a) Primarily includes foreign currency translation. |
Tax credit investments expenses and related income tax credits and other tax benefits | The following table presents tax credit investment expenses and associated income tax credits and other income tax benefits for the years ended December 31: (Millions) 2023 2022 2021 Proportional amortization recognized in tax provision $ 185 $ 161 $ 226 Equity method expenses recognized in Other, net expenses $ — $ 9 $ 13 Income tax credits and Other income tax benefits (a) recognized in tax provision $ 204 $ 196 $ 182 (a) Other income tax benefits are a result of tax deductible expenses generated by our tax credit investments. |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Customer deposits by component and type | As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2023 2022 U.S.: Interest-bearing $ 128,146 $ 109,119 Non-interest-bearing (includes Card Member credit balances of: 2023, $495; 2022, $605) 557 663 Non-U.S.: Interest-bearing 12 15 Non-interest-bearing (includes Card Member credit balances of: 2023, $426; 2022, $439) 429 442 Total customer deposits $ 129,144 $ 110,239 Customer deposits by deposit type as of December 31 were as follows: (Millions) 2023 2022 U.S. retail deposits: Savings and transaction accounts $ 93,722 $ 76,731 Certificates of deposit: Direct 5,557 2,760 Third-party (brokered) 12,960 13,331 Sweep accounts ― Third-party (brokered) 15,907 16,297 Total U.S. retail deposits $ 128,146 $ 109,119 Other deposits 77 76 Card Member credit balances 921 1,044 Total customer deposits $ 129,144 $ 110,239 |
Time deposits by maturity | The scheduled maturities of certificates of deposit as of December 31, 2023 were as follows: (Millions) 2024 2025 2026 2027 2028 After 5 years Total Certificates of deposit (a) $ 11,740 $ 4,370 $ 933 $ 776 $ 704 $ — $ 18,523 (a) Includes $6 million of non-U.S. direct certificates of deposit as of December 31, 2023. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | Our short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2023 2022 (Millions, except percentages) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Short-term borrowings (b) $ 1,293 1.03 % $ 1,348 0.94 % Total $ 1,293 1.03 % $ 1,348 0.94 % (a) For floating-rate issuances, the stated interest rates are weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2023 and 2022. (b) Includes borrowings from banks and book overdrafts with banks, which represents negative cash balances for accounts with an associated overdraft facility, due to timing differences arising in the ordinary course of business. |
Long-term debt | Our long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2023 2022 (Millions, except percentages) Original Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) American Express Company Fixed Rate Senior Notes 2024 - 2042 $ 20,930 3.48 % 4.14 % $ 23,813 3.34 % 4.00 % Floating Rate Senior Notes 2024 - 2027 2,400 6.21 — 3,000 4.78 — Fixed-to-Floating Rate Senior Notes 2026 - 2034 8,769 5.38 5.91 1,250 4.42 — Fixed Rate Subordinated Notes 2024 586 3.63 6.74 574 3.63 5.46 Fixed-to-Floating Rate Subordinated Notes 2033 - 2034 1,257 5.24 5.92 750 4.99 — American Express Credit Corporation Fixed Rate Senior Notes 2027 330 3.30 328 3.30 — Lending Trust Fixed Rate Senior Notes 2024 - 2028 13,449 3.36 3.49 10,499 2.81 — Floating Rate Senior Notes — — — 2,125 4.67 — Floating Rate Subordinated Notes — — — 61 4.89 — Other Finance Leases — — 3 5.76 — Floating Rate Borrowings 2024 - 2026 238 0.42 254 0.41 — % Unamortized Underwriting Fees (93) (84) Total Long-Term Debt $ 47,866 3.96 % $ 42,573 3.42 % (a) The outstanding balances include (i) unamortized discount, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Refer to Note 13 for more details on our treatment of fair value hedges. (b) For floating-rate issuances, the stated interest rate on debt is weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2023 and 2022. (c) |
Aggregate annual maturities on long-term debt obligations | Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2023 were as follows: (Millions) 2024 2025 2026 2027 2028 Thereafter Total American Express Company (Parent Company only) $ 7,500 $ 5,250 $ 6,700 $ 6,411 $ — $ 8,523 $ 34,384 American Express Credit Corporation — — — 339 — — 339 Lending Trust 2,750 7,250 2,100 — 1,350 — 13,450 Other 105 63 70 238 $ 10,355 $ 12,563 $ 8,870 $ 6,750 $ 1,350 $ 8,523 $ 48,411 Unamortized Underwriting Fees (93) Unamortized Discount and Premium (505) Impacts due to Fair Value Hedge Accounting 53 Total Long-Term Debt $ 47,866 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other liabilities | The following is a summary of Other liabilities as of December 31: (Millions) 2023 2022 Membership Rewards liability $ 13,742 $ 12,789 Book overdraft balances (a) 9,897 7,352 Deferred card and other fees, net 3,442 3,027 Employee-related liabilities (b) 2,567 2,530 Card Member rebate and reward accruals (c) 2,061 2,126 Income tax liability (d) 1,275 1,651 Other (e) 8,655 7,875 Total $ 41,639 $ 37,350 (a) Primarily includes negative cash balances for accounts without an associated overdraft facility, due to timing differences arising in the ordinary course of business. (b) Includes employee benefit plan obligations and incentive compensation. (c) Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. (d) Includes repatriation tax liability of $998 million and $1,012 million as of December 31, 2023 and 2022, respectively, which represents our remaining obligation under the Tax Cuts and Jobs Act enacted on December 22, 2017 (Tax Act) to pay a one-time transition tax on unrepatriated earnings and profits of certain foreign subsidiaries, the net position for current federal, state and non-U.S. income tax liabilities and deferred tax liabilities for foreign jurisdictions. (e) Primarily includes prepaid products and Travelers Cheques, lease liabilities, derivative liabilities, accruals for general operating expenses, payments to cobrand partners, unfunded commitments for tax credit investments, client incentives and dividends payable. |
Carrying amount of deferred card and other fees | The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations, as of December 31, 2023 was as follows: (Millions) 2023 2022 Deferred card and other fees (a) $ 3,818 $ 3,380 Deferred direct acquisition costs (158) (173) Reserves for membership cancellations (218) (180) Deferred card and other fees, net $ 3,442 $ 3,027 (a) Includes deferred fees for Membership Rewards program participants. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of stock option and RSU activity | Our stock options and RSUs outstanding as of December 31, 2023, and changes during the year, are as follows: Stock Options Service-Based RSUs Service and Performance-Based RSUs (Numbers in thousands) Number Weighted-Average Number Weighted- Average Grant- Date Fair Value Number Weighted- Average Grant- Date Fair Value Outstanding as of December 31, 2022 3,634 $ 113.80 1,788 $ 142.92 3,472 $ 135.57 Granted 230 173.61 910 172.02 1,395 158.57 Options exercised/RSUs vested (311) 89.62 (787) 134.97 (1,498) 136.16 Forfeited — — (84) 162.18 (73) 153.04 Expired — — — — — — Outstanding as of December 31, 2023 3,553 119.80 1,827 $ 159.95 3,296 $ 144.64 Options vested and expected to vest as of December 31, 2023 3,547 119.74 Options exercisable as of December 31, 2023 1,810 $ 90.94 |
Weighted-average assumptions used for options | The fair value of options without market conditions is estimated on the grant date using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2023, 2022 and 2021: 2023 2022 2021 Dividend yield 1.4 % 1.0 % 1.5 % Expected volatility (a) 32 % 31 % 31 % Risk-free interest rate 3.5 % 1.7 % 0.8 % Expected life of stock option ( in years ) (b) 7.1 7.1 7.2 Weighted-average fair value per option $ 60.03 $ 55.30 $ 32.38 (a) The expected volatility is based on historical and implied volatilities of our common stock price. (b) The expected life of stock options was determined using historical option exercise behavior. |
Weighted-average remaining contractual life and aggregate intrinsic value of stock options | The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock price exceeds the exercise price of the option) of the stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2023, were as follows: Outstanding Exercisable Vested and Weighted-average remaining contractual life (in years) 5.2 3.5 5.2 Aggregate intrinsic value (millions) $ 240 $ 174 $ 240 |
Schedule of share-based payment award, valuation assumptions | The weighted averages of the following assumptions used in 2023, 2022 and 2021 were: 2023 2022 2021 Expected volatility 45 % 42 % 41 % Risk-free interest rate 3.7 % 1.4 % 0.2 % Remaining performance period (in years) 2.9 2.9 2.9 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | The following represents the maturities of our outstanding lease commitments as of December 31, 2023: (Millions) 2024 $ 159 2025 139 2026 121 2027 104 2028 98 Thereafter 841 Total Outstanding Fixed Lease Payments $ 1,462 Less: Amount representing interest $ (536) Lease Liabilities $ 926 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: Other Assets Fair Value Other Liabilities Fair Value (Millions) 2023 2022 2023 2022 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ — $ — $ 99 $ 211 Net investment hedges - Foreign exchange contracts 9 350 455 251 Total derivatives designated as hedging instruments 9 350 554 462 Derivatives not designated as hedging instruments: Foreign exchange contracts and other 71 171 423 339 Total derivatives, gross 80 521 977 801 Derivative asset and derivative liability netting (b) (57) (257) (57) (257) Cash collateral netting (c) — (11) (106) (212) Total derivatives, net $ 23 $ 253 $ 814 $ 332 (a) For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral. (b) Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. (c) Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty. |
Effect of fair value hedges on results of operations | The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the years ended December 31: Gains (losses) (Millions) 2023 2022 2021 Fixed-rate long-term debt $ (289) $ 473 $ 385 Derivatives designated as hedging instruments 290 (476) (385) Total $ 1 $ (3) $ — |
Fair Values (Tables)
Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy (as described in the preceding paragraphs), as of December 31: 2023 2022 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 66 $ 66 $ — $ — $ 41 $ 40 $ 1 $ — Debt securities 2,120 — 2,046 74 4,537 — 4,490 47 Derivatives, gross (a)(b) 80 — 62 18 521 — 494 27 Total Assets 2,266 66 2,108 92 5,099 40 4,985 74 Liabilities: Derivatives, gross (a) 977 — 977 — 801 — 801 — Total Liabilities $ 977 $ — $ 977 $ — $ 801 $ — $ 801 $ — (a) Refer to Note 4 for the fair values of investment securities and to Note 13 for the fair values of derivative assets and liabilities, on a further disaggregated basis. (b) Level 3 fair value reflects an embedded derivative. Management reviews and applies judgment to the valuation of the embedded derivative that is performed by an independent third party using a Monte Carlo simulation that models a range of probable future stock prices based on implied volatility in a risk neutral framework. Refer to Note 13 for additional information about this embedded derivative. |
Estimated fair value of financial assets and financial liabilities | The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of December 31, 2023 and 2022. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2023 and 2022, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented. 2023 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 47 $ 47 $ 45 $ 2 $ — Other financial assets (b) 63 63 — 63 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 128 133 — — 133 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 143 143 — 143 — Financial liabilities carried at other than fair value Certificates of deposit (d) 19 18 — 18 — Long-term debt (c) $ 48 $ 48 $ — $ 48 $ — 2022 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 34 $ 34 $ 32 $ 2 $ — Other financial assets (b) 60 60 — 60 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 110 113 — — 113 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 123 123 — 123 — Financial liabilities carried at other than fair value Certificates of deposit (d) 16 16 — 16 — Long-term debt (c) $ 43 $ 42 $ — $ 42 $ — (a) Level 2 fair value amounts reflect time deposits and short-term investments. (b) Balances include Card Member receivables (including fair values of Card Member receivables of $4.6 billion and 5.2 billion held by a consolidated VIE as of December 31, 2023 and 2022, respectively), other receivables and other miscellaneous assets. (c) Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $28.6 billion and $28.4 billion as of December 31, 2023 and 2022, respectively, and the fair values of Long-term debt were $13.3 billion and $12.3 billion as of December 31, 2023 and 2022, respectively. (d) Presented as a component of Customer deposits on the Consolidated Balance Sheets. |
Common and Preferred Shares (Ta
Common and Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Authorized shares and a reconciliation of common shares issued and outstanding | The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31: (Millions, except where indicated) 2023 2022 2021 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 743 761 805 Repurchases of common shares (22) (20) (46) Net shares issued for RSUs and stock option exercises (b) 2 2 2 Shares issued and outstanding as of December 31 723 743 761 (a) Of the common shares authorized but unissued as of December 31, 2023, approximately 16 million shares are reserved for issuance under employee stock and employee benefit plans. (b) Shares issued for RSUs are reported net of shares withheld for tax withholding obligations. |
Perpetual fixed rate noncumulative preferred shares issued and outstanding | We have the following perpetual Fixed Rate Reset Noncumulative Preferred Share series issued and outstanding as of December 31, 2023: Series D Issuance date August 3, 2021 Securities issued 1,600 Preferred shares; represented by 1,600,000 depositary shares Dividend rate per annum 3.55% through September 14, 2026; resets September 15, 2026 and every subsequent 5-year anniversary at 5-year Treasury rate plus 2.854% Dividend payment date Quarterly beginning September 15, 2021 Earliest redemption date September 15, 2026 Aggregate liquidation preference $1,600 million Carrying value (a) $1,584 million (a) Carrying value, presented in the Statements of Shareholders’ Equity, represents the issuance proceeds, net of underwriting fees and offering costs. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 years ended December 31 were as follows: (Millions) , net of tax Net Unrealized Gains (Losses) on Debt Foreign Currency Translation Adjustment Gains (Losses), Net of Hedges (a) Net Unrealized Pension Accumulated Other Balances as of December 31, 2020 $ 65 $ (2,229) $ (731) $ (2,895) Net change (42) (163) 155 (50) Balances as of December 31, 2021 23 (2,392) (576) (2,945) Net change (87) (230) 52 (265) Balances as of December 31, 2022 (64) (2,622) (524) (3,210) Net change 50 51 37 138 Balances as of December 31, 2023 $ (14) $ (2,571) $ (487) $ (3,072) (a) Refer to Note 13 for additional information on hedging activity. |
AOCI income tax effect | The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2023 2022 2021 Net unrealized gains (losses) on debt securities $ 16 $ (27) $ (13) Foreign currency translation adjustment, net of hedges (158) 75 51 Pension and other postretirement benefits (3) 27 52 Total tax impact $ (145) $ 75 $ 90 |
Service Fees and Other Revenu_2
Service Fees and Other Revenue and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Service Fees and Other Revenue and Other Expenses [Abstract] | |
Service fees and other revenue | The following is a detail of Service fees and other revenue for the years ended December 31: (Millions) 2023 2022 2021 Service fees $ 1,518 $ 1,444 $ 1,385 Foreign currency-related revenue 1,428 1,202 624 Delinquency fees 963 809 637 Travel commissions and fees 637 507 244 Other fees and revenues 459 559 426 Total Service fees and other revenue $ 5,005 $ 4,521 $ 3,316 |
Other expenses | The following is a detail of Other expenses for the years ended December 31: (Millions) 2023 2022 2021 Data processing and equipment $ 2,805 $ 2,606 $ 2,431 Professional services 2,029 2,074 1,958 Net unrealized and realized losses (gains) on Amex Ventures investments (a) 152 302 (767) Other 1,821 1,499 1,195 Total Other expenses $ 6,807 $ 6,481 $ 4,817 (a) Refer to Note 14 for further information regarding Amex Ventures investments accounted for as equity investments without readily determinable fair values. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense | The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2023 2022 2021 Current income tax expense: U.S. federal $ 2,455 $ 2,445 $ 1,656 U.S. state and local 351 339 351 Non-U.S. 662 476 328 Total current income tax expense 3,468 3,260 2,335 Deferred income tax (benefit) expense: U.S. federal (952) (763) 231 U.S. state and local (139) (117) 22 Non-U.S. (238) (309) 41 Total deferred income tax (benefit) expense (1,329) (1,189) 294 Total income tax expense $ 2,139 $ 2,071 $ 2,629 |
Effective income tax rate reconciliation | A reconciliation of the U.S. federal statutory rate of 21 percent as of December 31, 2023, 2022 and 2021, to our actual income tax rate was as follows: 2023 2022 2021 U.S. statutory federal income tax rate 21.0 % 21.0 % 21.0 % (Decrease) increase in taxes resulting from: Tax credits and tax-exempt income (0.7) (0.9) (0.1) State and local income taxes, net of federal benefit 2.4 3.1 3.0 Non-U.S. subsidiaries’ earnings (a) (0.8) (0.1) 1.1 Tax settlements and lapse of statute of limitations (2.0) (2.1) (0.3) Valuation allowances 0.1 (0.1) — Other 0.3 0.7 (0.1) Actual tax rates 20.3 % 21.6 % 24.6 % (a) In certain jurisdictions outside the United States, we benefit from agreements that temporarily lower our income tax expense. The impact of these agreements was not material to our Consolidated Statements of Income. |
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2023 2022 Deferred tax assets: Reserves not yet deducted for tax purposes $ 4,552 $ 4,052 Employee compensation and benefits 335 353 Net operating loss and tax credit carryforwards 466 411 Capitalized developed software 743 — Other 723 776 Gross deferred tax assets 6,819 5,592 Valuation allowance (614) (537) Deferred tax assets after valuation allowance 6,205 5,055 Deferred tax liabilities: Intangibles and fixed assets 683 671 Deferred revenue 62 126 Deferred interest 114 118 Investment in joint ventures — 17 Other 566 618 Gross deferred tax liabilities 1,425 1,550 Net deferred tax assets $ 4,780 $ 3,505 |
Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits: (Millions) 2023 2022 2021 Balance, January 1 $ 962 $ 1,024 $ 790 Increases: Current year tax positions 132 119 64 Tax positions related to prior years 40 30 225 Decreases: Tax positions related to prior years (50) (30) (14) Settlements with tax authorities (160) (74) (15) Lapse of statute of limitations (49) (104) (17) Effects of foreign currency translations — (3) (9) Balance, December 31 $ 875 $ 962 $ 1,024 |
Earnings Per Common Share (EP_2
Earnings Per Common Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2023 2022 2021 Numerator: Basic and diluted: Net income $ 8,374 $ 7,514 $ 8,060 Preferred dividends (58) (57) (71) Equity-related adjustments (a) — — (16) Net income available to common shareholders 8,316 7,457 7,973 Earnings allocated to participating share awards (b) (64) (57) (56) Net income attributable to common shareholders $ 8,252 $ 7,400 $ 7,917 Denominator: (b) Basic: Weighted-average common stock 735 751 789 Add: Weighted-average stock options (c) 1 1 1 Diluted 736 752 790 Basic EPS $ 11.23 $ 9.86 $ 10.04 Diluted EPS $ 11.21 $ 9.85 $ 10.02 (a) Represents the difference between the redemption value and carrying value of the Series C and Series B preferred shares, which were redeemed on September 15, 2021 and November 15, 2021, respectively. The carrying value represents the original issuance proceeds, net of underwriting fees and offering costs for the preferred shares. (b) Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. (c) The dilutive effect of unexercised stock options excludes from the computation of EPS 1.38 million, 0.39 million and 0.01 million of options for the years ended December 31, 2023, 2022 and 2021, respectively, because inclusion of the options would have been anti-dilutive. |
Regulatory Matters and Capita_2
Regulatory Matters and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Regulatory capital ratios | The following table presents the regulatory capital ratios: (Millions, except percentages) CET 1 Tier 1 capital Total capital CET 1 capital Tier 1 capital Total capital Tier 1 leverage December 31, 2023: (a) American Express Company $ 23,174 $ 24,779 $ 28,784 10.5 % 11.3 % 13.1 % 9.9 % American Express National Bank $ 17,038 $ 17,038 $ 19,548 11.6 % 11.6 % 13.3 % 9.5 % December 31, 2022: (a) American Express Company $ 20,030 $ 21,627 $ 24,926 10.3 % 11.1 % 12.8 % 9.9 % American Express National Bank $ 14,820 $ 14,820 $ 17,273 11.3 % 11.3 % 13.2 % 9.7 % Well-capitalized ratios (b) American Express Company N/A 6.0 % 10.0 % N/A American Express National Bank 6.5 % 8.0 % 10.0 % 5.0 % Minimum capital ratios (c) 4.5 % 6.0 % 8.0 % 4.0 % Effective Minimum (d) American Express Company 7.0 % 8.5 % 10.5 % 4.0 % American Express National Bank 7.0 % 8.5 % 10.5 % 4.0 % (a) Capital ratios reported using Basel III capital definitions and risk-weighted assets using the Basel III standardized approach. (b) Represents requirements for bank holding companies and banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Reserve Regulation Y and the Federal Deposit Insurance Corporation Improvement Act, respectively. There is no CET1 capital ratio or Tier 1 leverage ratio requirement for a bank holding company to be considered “well capitalized.” (c) As defined by the regulations issued by the Federal Reserve and OCC. (d) |
Significant Credit Concentrat_2
Significant Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Maximum credit exposure by category | The following table details our maximum credit exposure of the on-balance sheet assets by category as of December 31: (Billions) 2023 2022 Individuals: (a) $ 178 $ 156 United States 145 129 Outside the United States (b) 33 27 Institutions: Financial services (c) 12 11 Other (d) 17 17 Federal Reserve Bank 37 25 U.S. Government and agencies (e) 1 4 Total on-balance sheet $ 245 $ 213 (a) Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management. (b) The geographic regions with the largest concentration outside the United States include the United Kingdom, Japan, the European Union, Australia, Canada and Mexico. (c) Represents banks, broker-dealers, insurance companies and savings and loan associations, which are governed by institutional credit risk management. (d) Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. (e) Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities. Risk management for these balances is governed by our Asset and Liability Management Committee. |
Reportable Operating Segments_2
Reportable Operating Segments and Geographic Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Operating segment information | The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the years ended December 31, 2023, 2022 and 2021: (Millions, except where indicated) USCS CS ICS GMNS Corporate & Other (a) Consolidated 2023 Total non-interest revenues $ 18,464 $ 12,931 $ 9,472 $ 6,620 $ (106) $ 47,381 Revenue from contracts with customers (b) 13,715 11,379 6,155 6,006 (37) 37,218 Interest income 12,336 3,328 2,076 57 2,186 19,983 Interest expense 2,684 1,483 1,118 (719) 2,283 6,849 Total revenues net of interest expense 28,116 14,776 10,430 7,396 (203) 60,515 Pretax income (loss) 5,433 2,861 973 3,656 (2,410) 10,513 Total assets (billions) $ 107 $ 55 $ 42 $ 24 $ 33 $ 261 2022 Total non-interest revenues $ 16,440 $ 12,196 $ 8,262 $ 6,123 $ (54) $ 42,967 Revenue from contracts with customers (b) 12,478 10,844 5,301 5,603 (7) 34,219 Interest income 8,457 2,070 1,453 23 655 12,658 Interest expense 983 697 654 (329) 758 2,763 Total revenues net of interest expense 23,914 13,569 9,061 6,475 (157) 52,862 Pretax income (loss) 5,400 2,880 578 2,954 (2,227) 9,585 Total assets (billions) $ 94 $ 51 $ 37 $ 20 $ 26 $ 228 2021 Total non-interest revenues $ 12,989 $ 9,833 $ 6,761 $ 5,021 $ 26 $ 34,630 Revenue from contracts with customers (b) 9,823 8,659 4,368 4,694 172 27,716 Interest income 6,328 1,408 1,116 16 165 9,033 Interest expense 395 330 442 (92) 208 1,283 Total revenues net of interest expense 18,922 10,911 7,435 5,129 (17) 42,380 Pretax income (loss) 5,958 2,936 929 1,874 (1,008) 10,689 Total assets (billions) $ 77 $ 45 $ 33 $ 15 $ 19 $ 189 (a) Corporate & Other includes adjustments and eliminations for intersegment activity. (b) Includes discount revenue, certain service fees and other revenue and processed revenues from customers. |
Total revenues net of interest expense and pretax income | The following table presents our total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment. (Millions) United States EMEA (a) APAC (a) LACC (a) Other Unallocated (b) Consolidated 2023 Total revenues net of interest expense $ 47,140 $ 5,633 $ 4,372 $ 3,571 $ (201) $ 60,515 Pretax income (loss) from continuing operations 10,717 854 592 760 (2,410) 10,513 2022 Total revenues net of interest expense $ 41,396 $ 4,871 $ 3,835 $ 2,917 $ (157) $ 52,862 Pretax income (loss) from continuing operations 10,383 550 376 500 (2,224) 9,585 2021 Total revenues net of interest expense $ 33,103 $ 3,643 $ 3,418 $ 2,238 $ (22) $ 42,380 Pretax income (loss) from continuing operations 10,325 460 420 494 (1,010) 10,689 (a) EMEA represents Europe, the Middle East and Africa; APAC represents Asia Pacific, Australia and New Zealand; and LACC represents Latin America, Canada and the Caribbean. (b) Other Unallocated includes net costs which are not directly allocated to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed statements of income and comprehensive income | PARENT COMPANY – CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31 (Millions) 2023 2022 2021 Revenues Non-interest revenues Other $ 407 $ 388 $ 343 Total non-interest revenues 407 388 343 Interest income 1,558 614 96 Interest expense 1,436 857 482 Total revenues net of interest expense 529 145 (43) Expenses Salaries and employee benefits 487 408 359 Other 408 372 346 Total expenses 895 780 705 Loss before income tax and equity in net income of subsidiaries (366) (635) (748) Income tax benefit (163) (244) (248) Equity in net income of subsidiaries and affiliates 8,577 7,905 8,560 Net income $ 8,374 $ 7,514 $ 8,060 Net unrealized pension and other postretirement benefits, net of tax 5 10 151 Other comprehensive income (loss), net 133 (275) (201) Comprehensive income $ 8,512 $ 7,249 $ 8,010 |
Condensed balance sheets | PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2023 2022 Assets Cash and cash equivalents $ 9,652 $ 8,188 Equity in net assets of subsidiaries and affiliates 28,019 24,702 Loans to subsidiaries and affiliates 25,471 22,658 Due from subsidiaries and affiliates 1,261 1,342 Other assets 349 156 Total assets 64,752 57,046 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 2,188 2,271 Due to subsidiaries and affiliates 555 632 Long-term debt 33,952 29,432 Total liabilities 36,695 32,335 Shareholders’ Equity Total shareholders’ equity 28,057 24,711 Total liabilities and shareholders’ equity $ 64,752 $ 57,046 |
Condensed statements of cash flows | PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2023 2022 2021 Cash Flows from Operating Activities Net income $ 8,374 $ 7,514 $ 8,060 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (8,577) (7,905) (8,560) Dividends received from subsidiaries and affiliates 5,326 5,549 9,102 Other operating activities, primarily with subsidiaries and affiliates 360 160 (305) Net cash provided by operating activities 5,483 5,318 8,297 Cash Flows from Investing Activities Net increase in loans to subsidiaries and affiliates (2,836) (4,850) (176) Investments in subsidiaries and affiliates — (1) (60) Net cash used in investing activities (2,836) (4,851) (236) Cash Flows from Financing Activities Net decrease in short-term debt from subsidiaries and affiliates — (136) (2,636) Proceeds from long-term debt 9,969 13,202 3,000 Payments of long-term debt (5,750) (5,675) (5,000) Issuance of American Express preferred shares — — 1,584 Redemption of American Express preferred shares — — (1,600) Issuance of American Express common shares 28 56 64 Repurchase of American Express common shares and other (3,650) (3,502) (7,652) Dividends paid (1,780) (1,565) (1,448) Net cash (used in) provided by financing activities (1,183) 2,380 (13,688) Net increase (decrease) in cash and cash equivalents 1,464 2,847 (5,627) Cash and cash equivalents at beginning of year 8,188 5,341 10,968 Cash and cash equivalents at end of year $ 9,652 $ 8,188 $ 5,341 Supplemental cash flow information Years Ended December 31 (Millions) 2023 2022 2021 Non-Cash Investing Activities Loans to subsidiaries and affiliates $ — $ — $ (1,787) Non-Cash Financing Activities Proceeds from long-term debt $ — $ — $ 1,787 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Discount Revenue (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Contract terms with large merchants | 3 years |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Contract terms with large merchants | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |
Goodwill impairment charges | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Premises and Equipment (Details) | Dec. 31, 2023 |
Equipment, Furniture And Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment, Furniture And Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Premises | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Premises | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 50 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Loans and Card Member Receiva_3
Loans and Card Member Receivables - Card Member and other Loans (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Card Member loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | $ 125,995 | $ 107,964 | ||
Financing receivables, reserves for credit losses | 5,118 | 3,747 | $ 3,305 | $ 5,344 |
Financing receivables, net | 120,877 | 104,217 | ||
Card Member loans | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 98,111 | 84,964 | ||
Card Member loans | Small Business | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 27,833 | 22,947 | ||
Card Member loans | Corporate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 51 | 53 | ||
Other loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, reserves for credit losses | 126 | 59 | ||
Financing receivables, net | 6,960 | 5,357 | ||
Variable Interest Entity, Primary Beneficiary | Card Member loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 28,590 | 28,461 | ||
Variable Interest Entity, Primary Beneficiary | Card Member loans | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | $ 28,600 | $ 28,500 |
Loans and Card Member Receiva_4
Loans and Card Member Receivables - Card Member Receivables (Details) - Card Member receivables - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | $ 60,411 | $ 57,613 | ||
Financing receivables, reserves for credit losses | 174 | 229 | $ 64 | $ 267 |
Financing receivables, net | 60,237 | 57,384 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 25,578 | 22,885 | ||
Small Business | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 19,286 | 19,629 | ||
Corporate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 15,547 | 15,099 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 4,587 | 5,193 | ||
Variable Interest Entity, Primary Beneficiary | Corporate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | $ 4,600 | $ 5,200 |
Loans and Card Member Receiva_5
Loans and Card Member Receivables - Aging (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans over 90 days past due and accruing interest | $ 309 | $ 169 | |
Non-accruals | $ 191 | 96 | |
Threshold period past due for write-off | 180 days | ||
Card Member loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due | 30 days | ||
Financing receivables, gross | $ 125,995 | $ 107,964 | |
Threshold period past due for write-off | 180 days | ||
Card Member loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | $ 98,111 | 84,964 | |
Loans over 90 days past due and accruing interest | 393 | 252 | 149 |
Non-accruals | 344 | 155 | 82 |
Card Member loans | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 27,833 | 22,947 | |
Loans over 90 days past due and accruing interest | 109 | 54 | 19 |
Non-accruals | 95 | 34 | 14 |
Card Member loans | Corporate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 51 | 53 | |
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accruals | $ 0 | 0 | 0 |
Card Member receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due | 30 days | ||
Financing receivables, gross | $ 60,411 | 57,613 | |
Threshold period past due for write-off | 180 days | ||
Card Member receivables | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | $ 25,578 | 22,885 | |
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accruals | 0 | 0 | 0 |
Card Member receivables | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 19,286 | 19,629 | |
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accruals | 0 | 0 | 0 |
Card Member receivables | Corporate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 15,547 | 15,099 | |
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accruals | 0 | 0 | $ 0 |
Current | Card Member loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 96,779 | 84,102 | |
Current | Card Member loans | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 27,444 | 22,731 | |
Current | Card Member receivables | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 25,355 | 22,634 | |
Current | Card Member receivables | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 19,020 | 19,330 | |
30-59 Days Past Due | Card Member loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 420 | 281 | |
30-59 Days Past Due | Card Member loans | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 133 | 81 | |
30-59 Days Past Due | Card Member receivables | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 70 | 83 | |
30-59 Days Past Due | Card Member receivables | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 104 | 120 | |
60-89 Days Past Due | Card Member loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 298 | 198 | |
60-89 Days Past Due | Card Member loans | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 85 | 49 | |
60-89 Days Past Due | Card Member receivables | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 47 | 56 | |
60-89 Days Past Due | Card Member receivables | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 62 | 69 | |
90+ Days Past Due | Card Member loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 614 | 383 | |
90+ Days Past Due | Card Member loans | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 171 | 86 | |
90+ Days Past Due | Card Member loans | Corporate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 0 | 0 | |
90+ Days Past Due | Card Member receivables | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 106 | 112 | |
90+ Days Past Due | Card Member receivables | Small Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | 100 | 110 | |
90+ Days Past Due | Card Member receivables | Corporate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross | $ 67 | $ 85 |
Loans and Card Member Receiva_6
Loans and Card Member Receivables - Credit Quality (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Credit Quality Indicator for Loans and Receivables | ||
90+ Days Past Billing as a % of total | 0.40% | 0.60% |
Card Member loans | Consumer | ||
Credit Quality Indicator for Loans and Receivables | ||
30+ Days Past Due as a % of Total | 1.40% | 1% |
Card Member loans | Small Business | ||
Credit Quality Indicator for Loans and Receivables | ||
30+ Days Past Due as a % of Total | 1.40% | 0.90% |
Card Member loans | Net Write-Off Rate - Principal Only | Consumer | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 1.80% | 0.90% |
Card Member loans | Net Write-Off Rate - Principal Only | Small Business | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 1.70% | 0.70% |
Card Member loans | Net Write-Off Rate Principal Interest, and Fees | Consumer | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 2.20% | 1.20% |
Card Member loans | Net Write-Off Rate Principal Interest, and Fees | Small Business | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 1.90% | 0.80% |
Card Member receivables | Consumer | ||
Credit Quality Indicator for Loans and Receivables | ||
30+ Days Past Due as a % of Total | 0.90% | 1.10% |
Card Member receivables | Small Business | ||
Credit Quality Indicator for Loans and Receivables | ||
30+ Days Past Due as a % of Total | 1.40% | 1.50% |
Card Member receivables | Net Write-Off Rate - Principal Only | Consumer | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 1.50% | 0.80% |
Card Member receivables | Net Write-Off Rate - Principal Only | Small Business | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 2.20% | 1.10% |
Card Member receivables | Net Write-Off Rate Principal Interest, and Fees | Consumer | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 1.60% | 0.90% |
Card Member receivables | Net Write-Off Rate Principal Interest, and Fees | Small Business | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 2.40% | 1.20% |
Card Member receivables | Net Write-Off Rate Principal Interest, and Fees | Corporate | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate | 0.60% | 0.40% |
Loans and Card Member Receiva_7
Loans and Card Member Receivables - Modifications (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Modifications [Line Items] | |
Maximum payment term extension | 60 months |
Unused credit available | $ 83 |
Account Balances | 3,089 |
Card Member loans | Interest Rate Reduction | Consumer | |
Financing Receivable, Modifications [Line Items] | |
Account Balances | $ 1,572 |
% of Total Class of Financing Receivables | 1.60% |
Weighted Average Interest Rate Reduction (% points) | 16.40% |
Card Member loans | Interest Rate Reduction | Small Business | |
Financing Receivable, Modifications [Line Items] | |
Account Balances | $ 550 |
% of Total Class of Financing Receivables | 2% |
Weighted Average Interest Rate Reduction (% points) | 15.90% |
Card Member loans | Interest Rate Reduction | Corporate | |
Financing Receivable, Modifications [Line Items] | |
Account Balances | $ 0 |
% of Total Class of Financing Receivables | 0% |
Weighted Average Interest Rate Reduction (% points) | 0% |
Card Member receivables | Term Extension | Consumer | |
Financing Receivable, Modifications [Line Items] | |
Account Balances | $ 346 |
% of Total Class of Financing Receivables | 1.40% |
Weighted Average Payment Term Extensions (# of months) | 27 months |
Card Member receivables | Term Extension | Small Business | |
Financing Receivable, Modifications [Line Items] | |
Account Balances | $ 543 |
% of Total Class of Financing Receivables | 2.80% |
Weighted Average Payment Term Extensions (# of months) | 28 months |
Card Member receivables | Term Extension | Corporate | |
Financing Receivable, Modifications [Line Items] | |
Account Balances | $ 13 |
% of Total Class of Financing Receivables | 0.10% |
Weighted Average Payment Term Extensions (# of months) | 9 months |
Other loans | Interest Rate Reduction and Term Extension | |
Financing Receivable, Modifications [Line Items] | |
Account Balances | $ 42 |
% of Total Class of Financing Receivables | 0.60% |
Weighted Average Interest Rate Reduction (% points) | 2.10% |
Weighted Average Payment Term Extensions (# of months) | 20 months |
Other loans | Term Extension | |
Financing Receivable, Modifications [Line Items] | |
Account Balances | $ 23 |
% of Total Class of Financing Receivables | 0.30% |
Weighted Average Interest Rate Reduction (% points) | 0% |
Weighted Average Payment Term Extensions (# of months) | 18 months |
Loans and Card Member Receiva_8
Loans and Card Member Receivables - Modifications that Subsequently Defaulted (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | $ 97 | $ 120 | $ 239 |
Interest Rate Reduction and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 1 | ||
Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 73 | ||
Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 23 | ||
Card Member loans | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 81 | 174 | |
Card Member loans | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 53 | ||
Card Member loans | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 20 | ||
Card Member loans | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member loans | Interest Rate Reduction and Term Extension | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member loans | Interest Rate Reduction and Term Extension | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member loans | Interest Rate Reduction and Term Extension | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member loans | Interest Rate Reduction | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 53 | ||
Card Member loans | Interest Rate Reduction | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 20 | ||
Card Member loans | Interest Rate Reduction | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member receivables | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 38 | 56 | |
Card Member receivables | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 9 | ||
Card Member receivables | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 14 | ||
Card Member receivables | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member receivables | Interest Rate Reduction and Term Extension | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member receivables | Interest Rate Reduction and Term Extension | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member receivables | Interest Rate Reduction and Term Extension | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Card Member receivables | Term Extension | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 9 | ||
Card Member receivables | Term Extension | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 14 | ||
Card Member receivables | Term Extension | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Other loans | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 1 | $ 1 | $ 9 |
Other loans | Interest Rate Reduction and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 1 | ||
Other loans | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | 0 | ||
Other loans | Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Account balance, modified and subsequent default | $ 0 |
Loans and Card Member Receiva_9
Loans and Card Member Receivables - Performance (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Modifications [Line Items] | |||
Account Balances | $ 1,733 | $ 1,332 | |
Current | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | $ 2,785 | ||
30-89 Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 231 | ||
90+ Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 73 | ||
Card Member loans | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 781 | 708 | |
Card Member loans | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 267 | 176 | |
Card Member loans | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 0 | 0 | |
Card Member loans | Current | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 1,433 | ||
Card Member loans | Current | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 489 | ||
Card Member loans | Current | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 0 | ||
Card Member loans | 30-89 Days Past Due | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 103 | ||
Card Member loans | 30-89 Days Past Due | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 45 | ||
Card Member loans | 30-89 Days Past Due | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 0 | ||
Card Member loans | 90+ Days Past Due | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 36 | ||
Card Member loans | 90+ Days Past Due | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 16 | ||
Card Member loans | 90+ Days Past Due | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 0 | ||
Card Member receivables | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 257 | 133 | |
Card Member receivables | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 403 | 247 | |
Card Member receivables | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 6 | 1 | |
Card Member receivables | Current | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 314 | ||
Card Member receivables | Current | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 479 | ||
Card Member receivables | Current | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 11 | ||
Card Member receivables | 30-89 Days Past Due | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 25 | ||
Card Member receivables | 30-89 Days Past Due | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 52 | ||
Card Member receivables | 30-89 Days Past Due | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 2 | ||
Card Member receivables | 90+ Days Past Due | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 7 | ||
Card Member receivables | 90+ Days Past Due | Small Business | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 12 | ||
Card Member receivables | 90+ Days Past Due | Corporate | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 0 | ||
Other loans | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | $ 19 | $ 67 | |
Other loans | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 59 | ||
Other loans | 30-89 Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | 4 | ||
Other loans | 90+ Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Account Balances | $ 2 |
Loans and Card Member Receiv_10
Loans and Card Member Receivables - Impaired Loans and Receivables, Prior to Adoption (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | $ 309 | $ 169 | |
Non-accruals | 191 | 96 | |
Account classified as a TDR in program | 1,733 | 1,332 | |
Account classified as a TDR out of program | 2,068 | 1,764 | |
Total impaired loans and receivables | 4,301 | 3,361 | |
Reserve for Credit Losses - TDRs | $ 504 | 596 | |
Accounts Receivable and Loans Textuals | |||
Threshold period past due for write-off | 180 days | ||
Account classified as TDR, past due 90 days and still accruing | $ 48 | 41 | |
Accounts classified as TDR, non-accrual | 17 | 19 | |
Out of Program TDR accounts that completed modification programs | 1,922 | 1,621 | |
Out of Program TDR accounts not in compliance with modification programs | 146 | 143 | |
Card Member loans | |||
Accounts Receivable and Loans Textuals | |||
Threshold period past due for write-off | 180 days | ||
Card Member loans | Consumer | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | $ 393 | 252 | 149 |
Non-accruals | 344 | 155 | 82 |
Account classified as a TDR in program | 781 | 708 | |
Account classified as a TDR out of program | 1,098 | 997 | |
Total impaired loans and receivables | 2,286 | 1,936 | |
Reserve for Credit Losses - TDRs | 335 | 415 | |
Card Member loans | Small Business | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 109 | 54 | 19 |
Non-accruals | 95 | 34 | 14 |
Account classified as a TDR in program | 267 | 176 | |
Account classified as a TDR out of program | 380 | 332 | |
Total impaired loans and receivables | 735 | 541 | |
Reserve for Credit Losses - TDRs | 108 | 132 | |
Card Member loans | Corporate | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accruals | $ 0 | 0 | 0 |
Account classified as a TDR in program | 0 | 0 | |
Account classified as a TDR out of program | 0 | 0 | |
Total impaired loans and receivables | 0 | 0 | |
Reserve for Credit Losses - TDRs | 0 | 0 | |
Card Member receivables | |||
Accounts Receivable and Loans Textuals | |||
Threshold period past due for write-off | 180 days | ||
Card Member receivables | Consumer | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | $ 0 | 0 | 0 |
Non-accruals | 0 | 0 | 0 |
Account classified as a TDR in program | 257 | 133 | |
Account classified as a TDR out of program | 179 | 130 | |
Total impaired loans and receivables | 436 | 263 | |
Reserve for Credit Losses - TDRs | 20 | 9 | |
Card Member receivables | Small Business | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accruals | 0 | 0 | 0 |
Account classified as a TDR in program | 403 | 247 | |
Account classified as a TDR out of program | 402 | 297 | |
Total impaired loans and receivables | 805 | 544 | |
Reserve for Credit Losses - TDRs | 40 | 39 | |
Card Member receivables | Corporate | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accruals | $ 0 | 0 | 0 |
Account classified as a TDR in program | 6 | 1 | |
Account classified as a TDR out of program | 7 | 6 | |
Total impaired loans and receivables | 13 | 7 | |
Reserve for Credit Losses - TDRs | 1 | 0 | |
Other loans | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 3 | 1 | |
Non-accruals | 2 | 0 | |
Account classified as a TDR in program | 19 | 67 | |
Account classified as a TDR out of program | 2 | 2 | |
Total impaired loans and receivables | 26 | 70 | |
Reserve for Credit Losses - TDRs | $ 0 | $ 1 |
Loans and Card Member Receiv_11
Loans and Card Member Receivables - Modified as TDR, Prior to Adoption (Details) account in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) account | Dec. 31, 2021 USD ($) account | |
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | account | 180 | 137 |
Account Balances | $ | $ 1,910 | $ 1,239 |
Card Member loans | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | account | 149 | 112 |
Account Balances | $ | $ 1,002 | $ 789 |
Average Interest Rate Reduction (as a percent) | 14% | 13% |
Card Member receivables | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | account | 27 | 21 |
Account Balances | $ | $ 900 | $ 437 |
Average Payment Term Extension (in months) | 20 months | 18 months |
Other loans | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | account | 4 | 4 |
Account Balances | $ | $ 8 | $ 13 |
Average Interest Rate Reduction (as a percent) | 2% | 3% |
Average Payment Term Extension (in months) | 17 months | 16 months |
Loans and Card Member Receiv_12
Loans and Card Member Receivables - TDR Subsequently Defaulted, Prior to Adoption (Details) account in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) account | Dec. 31, 2021 USD ($) account | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 18 | 32 | |
Aggregated Outstanding Balances Upon Default | $ | $ 97 | $ 120 | $ 239 |
Card Member loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 14 | 24 | |
Aggregated Outstanding Balances Upon Default | $ | $ 81 | $ 174 | |
Card Member receivables | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 3 | 5 | |
Aggregated Outstanding Balances Upon Default | $ | $ 38 | $ 56 | |
Other loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 1 | 3 | |
Aggregated Outstanding Balances Upon Default | $ | $ 1 | $ 1 | $ 9 |
Reserves for Credit Losses (Det
Reserves for Credit Losses (Details Textual) | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
CECL reasonable and supportable period | 3 years | |
Threshold period past due for write-off | 180 days | |
Revolving Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Threshold period past due for write-off | 180 days | |
Pay In Full Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Threshold period past due for write-off | 180 days | |
Term Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Threshold period past due for write-off | 120 days |
Reserves for Credit Losses - Ke
Reserves for Credit Losses - Key Variables (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
U.S. Unemployment Rate | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.04 | |
U.S. Unemployment Rate | Minimum | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | |
U.S. Unemployment Rate | Minimum | First quarter of 2024 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | 0.03 |
U.S. Unemployment Rate | Minimum | Fourth quarter of 2024 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | 0.03 |
U.S. Unemployment Rate | Minimum | Fourth quarter of 2025 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | 0.03 |
U.S. Unemployment Rate | Maximum | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.08 | |
U.S. Unemployment Rate | Maximum | First quarter of 2024 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.06 | 0.08 |
U.S. Unemployment Rate | Maximum | Fourth quarter of 2024 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.08 | 0.07 |
U.S. Unemployment Rate | Maximum | Fourth quarter of 2025 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.07 | 0.06 |
U.S. GDP Growth (Contraction) | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.01 | |
U.S. GDP Growth (Contraction) | Fourth quarter of 2025 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.02 | |
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.002 | |
U.S. GDP Growth (Contraction) | Minimum | First quarter of 2024 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | (0.03) | 0.003 |
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2024 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.01 | 0.02 |
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2025 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | |
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.06 | |
U.S. GDP Growth (Contraction) | Maximum | First quarter of 2024 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.04 | 0.02 |
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2024 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | 0.03 |
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2025 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.04 |
Reserves for Credit Losses - Ch
Reserves for Credit Losses - Changes in Loan Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provisions | $ 4,923 | $ 2,182 | $ (1,419) |
Card Member loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 3,747 | 3,305 | 5,344 |
Provisions | 3,839 | 1,514 | (1,155) |
Other | 18 | (6) | (5) |
Ending Balance | 5,118 | 3,747 | 3,305 |
Recoveries | 537 | 539 | 657 |
Foreign currency translation adjustments | 18 | (6) | (6) |
Card Member loans | Principal | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Net write-offs | (2,043) | (837) | (672) |
Card Member loans | Interest and fees | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Net write-offs | $ (443) | $ (229) | $ (207) |
Reserves for Credit Losses - _2
Reserves for Credit Losses - Change in Receivables Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provisions | $ 4,923 | $ 2,182 | $ (1,419) |
Card Member receivables | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 229 | 64 | 267 |
Provisions | 880 | 627 | (73) |
Net write-offs | (937) | (462) | (129) |
Other | 2 | 0 | (1) |
Ending Balance | 174 | 229 | 64 |
Recoveries | 297 | 257 | 378 |
Card Member receivables | Foreign Currency Translation Adjustments | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Foreign currency translation adjustments | $ 1 | $ 2 | $ (1) |
Investment Securities (Details
Investment Securities (Details Textual) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued interest available-for-sale debt securities | $ 5 | $ 12 |
Investment Securities - Summary
Investment Securities - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Available-for-sale debt securities: | |||
Cost | $ 2,138 | ||
Estimated Fair Value | 2,120 | $ 4,537 | |
Equity securities | |||
Cost | 60 | 50 | |
Gross Unrealized Gains | 16 | 0 | |
Gross Unrealized Losses | (10) | (9) | |
Estimated Fair Value | 66 | 41 | |
Total Cost | 2,198 | 4,671 | |
Total Gross Unrealized Gains | 17 | 0 | |
Total Gross Unrealized Losses | (29) | (93) | |
Total Estimated Fair Value | 2,186 | 4,578 | |
New public companies | |||
Equity securities | |||
Cost | 10 | ||
Estimated Fair Value | 24 | ||
Net unrealized gains on equity securities | $ 37 | ||
State and municipal obligations | |||
Available-for-sale debt securities: | |||
Cost | 61 | 64 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (6) | (10) | |
Estimated Fair Value | 55 | 54 | |
U.S. Government agency obligations | |||
Available-for-sale debt securities: | |||
Cost | 4 | 5 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 4 | 5 | |
U.S. Government treasury obligations | |||
Available-for-sale debt securities: | |||
Cost | 1,217 | 3,859 | |
Gross Unrealized Gains | 1 | 0 | |
Gross Unrealized Losses | (12) | (73) | |
Estimated Fair Value | 1,206 | 3,786 | |
Mortgage-backed securities | |||
Available-for-sale debt securities: | |||
Cost | 12 | 13 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (1) | 0 | |
Estimated Fair Value | 11 | 13 | |
Foreign government bonds and obligations | |||
Available-for-sale debt securities: | |||
Cost | 770 | 633 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | (1) | |
Estimated Fair Value | 770 | 632 | |
Other | |||
Available-for-sale debt securities: | |||
Cost | 74 | 47 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | $ 74 | $ 47 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 4,311 |
Estimated Fair Value, 12 months or more | 1,154 | 52 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | (83) |
Gross Unrealized Losses, 12 months or more | (19) | (1) |
State and municipal obligations | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 52 |
Estimated Fair Value, 12 months or more | 33 | 0 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | (10) |
Gross Unrealized Losses, 12 months or more | (6) | 0 |
U.S. Government treasury obligations | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 3,710 |
Estimated Fair Value, 12 months or more | 1,114 | 52 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | (72) |
Gross Unrealized Losses, 12 months or more | (12) | (1) |
Mortgage-backed securities | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 0 |
Estimated Fair Value, 12 months or more | 7 | 0 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | (1) | 0 |
Foreign government bonds and obligations | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 549 |
Estimated Fair Value, 12 months or more | 0 | 0 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | (1) |
Gross Unrealized Losses, 12 months or more | $ 0 | $ 0 |
Investment Securities - Gross_2
Investment Securities - Gross Unrealized Losses Ratio to Fair Value (Details) $ in Millions | Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Available-for-sale investment securities with gross unrealized losses | ||
Number of Securities, Less than 12 months | security | 0 | 88 |
Number of Securities, 12 months or more | security | 71 | 3 |
Number of Securities, Total | security | 71 | 91 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 4,311 |
Estimated Fair Value, 12 months or more | 1,154 | 52 |
Estimated Fair Value, Total | 1,154 | 4,363 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | (83) |
Gross Unrealized Losses, 12 months or more | (19) | (1) |
Gross Unrealized Losses, Total | $ (19) | $ (84) |
90%–100% | ||
Available-for-sale investment securities with gross unrealized losses | ||
Number of Securities, Less than 12 months | security | 0 | 74 |
Number of Securities, 12 months or more | security | 69 | 3 |
Number of Securities, Total | security | 69 | 77 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 4,287 |
Estimated Fair Value, 12 months or more | 1,140 | 52 |
Estimated Fair Value, Total | 1,140 | 4,339 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | (74) |
Gross Unrealized Losses, 12 months or more | (14) | (1) |
Gross Unrealized Losses, Total | $ (14) | $ (75) |
Less than 90% | ||
Available-for-sale investment securities with gross unrealized losses | ||
Number of Securities, Less than 12 months | security | 0 | 14 |
Number of Securities, 12 months or more | security | 2 | 0 |
Number of Securities, Total | security | 2 | 14 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 24 |
Estimated Fair Value, 12 months or more | 14 | 0 |
Estimated Fair Value, Total | 14 | 24 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | (9) |
Gross Unrealized Losses, 12 months or more | (5) | 0 |
Gross Unrealized Losses, Total | $ (5) | $ (9) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total Estimated Fair Value | |||
Due within 1 year | $ 1,778 | ||
Due after 1 year but within 5 years | 261 | ||
Due after 5 years but within 10 years | 32 | ||
Due after 10 years | 49 | ||
Total | 2,120 | $ 4,537 | |
Total Cost | |||
Due within 1 year | 1,784 | ||
Due after 1 year but within 5 years | 265 | ||
Due after 5 years but within 10 years | 33 | ||
Due after 10 years | 56 | ||
Total | $ 2,138 | ||
Weighted average yields | |||
Weighted average yields, due within 1 year | 4.68% | ||
Weighted average yields, due after 1 years but within 5 years | 3.17% | ||
Weighted average yields, due after 5 years but within 10 years | 4.76% | ||
Weighted average yield, due after 10 years | 2.80% | ||
Total | 4.44% | ||
U.S. statutory federal income tax rate | 21% | 21% | 21% |
State and municipal obligations | |||
Total Estimated Fair Value | |||
Due within 1 year | $ 0 | ||
Due after 1 year but within 5 years | 1 | ||
Due after 5 years but within 10 years | 20 | ||
Due after 10 years | 34 | ||
Total | 55 | $ 54 | |
Total Cost | |||
Total | 61 | 64 | |
U.S. Government agency obligations | |||
Total Estimated Fair Value | |||
Due within 1 year | 0 | ||
Due after 1 year but within 5 years | 0 | ||
Due after 5 years but within 10 years | 0 | ||
Due after 10 years | 4 | ||
Total | 4 | 5 | |
Total Cost | |||
Total | 4 | 5 | |
U.S. Government treasury obligations | |||
Total Estimated Fair Value | |||
Due within 1 year | 1,010 | ||
Due after 1 year but within 5 years | 194 | ||
Due after 5 years but within 10 years | 2 | ||
Due after 10 years | 0 | ||
Total | 1,206 | 3,786 | |
Total Cost | |||
Total | 1,217 | 3,859 | |
Mortgage-backed securities | |||
Total Estimated Fair Value | |||
Due within 1 year | 0 | ||
Due after 1 year but within 5 years | 0 | ||
Due after 5 years but within 10 years | 0 | ||
Due after 10 years | 11 | ||
Total | 11 | 13 | |
Total Cost | |||
Total | 12 | 13 | |
Foreign government bonds and obligations | |||
Total Estimated Fair Value | |||
Due within 1 year | 768 | ||
Due after 1 year but within 5 years | 2 | ||
Due after 5 years but within 10 years | 0 | ||
Due after 10 years | 0 | ||
Total | 770 | 632 | |
Total Cost | |||
Total | 770 | 633 | |
Other | |||
Total Estimated Fair Value | |||
Due within 1 year | 0 | ||
Due after 1 year but within 5 years | 64 | ||
Due after 5 years but within 10 years | 10 | ||
Due after 10 years | 0 | ||
Total | 74 | 47 | |
Total Cost | |||
Total | $ 74 | $ 47 |
Asset Securitizations (Details
Asset Securitizations (Details Textual) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Securitized Trusts [Line Items] | ||
Restricted cash and cash equivalents | $ 514 | $ 544 |
Lending Trust | ||
Securitized Trusts [Line Items] | ||
Direct and indirect ownership of variable interests | 15,300 | 16,000 |
Restricted cash and cash equivalents | 66 | 59 |
Charge Trust | ||
Securitized Trusts [Line Items] | ||
Direct and indirect ownership of variable interests | 4,600 | 5,200 |
Restricted cash and cash equivalents | $ 0 | $ 0 |
Other Assets - Summary (Details
Other Assets - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | |||
Goodwill | $ 3,851 | $ 3,786 | $ 3,804 |
Other intangible assets, at amortized cost | 98 | 146 | |
Other | 15,165 | 13,757 | |
Total | $ 19,114 | $ 17,689 |
Other Assets - Goodwill (Detail
Other Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 3,786 | $ 3,804 |
Acquisitions | 48 | 13 |
Dispositions | 0 | 0 |
Other | 17 | (31) |
Goodwill, ending balance | 3,851 | 3,786 |
USCS | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 379 | 368 |
Acquisitions | 0 | 13 |
Dispositions | 0 | 0 |
Other | 0 | (2) |
Goodwill, ending balance | 379 | 379 |
CS | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,122 | 2,123 |
Acquisitions | 30 | 0 |
Dispositions | 0 | 0 |
Other | (1) | (1) |
Goodwill, ending balance | 2,151 | 2,122 |
ICS | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 725 | 753 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other | 18 | (28) |
Goodwill, ending balance | 743 | 725 |
GMNS | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 560 | 560 |
Acquisitions | 18 | 0 |
Dispositions | 0 | 0 |
Other | 0 | 0 |
Goodwill, ending balance | $ 578 | $ 560 |
Other Assets (Details Textual)
Other Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Assets [Line Items] | |||
Accumulated goodwill impairment losses | $ 221 | $ 221 | |
Gross carrying amount | 717 | 720 | |
Accumulated amortization | 619 | 574 | |
Amortization expense | 49 | 51 | $ 57 |
Expected amortization expense in 2024 | 44 | ||
Expected amortization expense in 2025 | 21 | ||
Expected amortization expense in 2026 | 11 | ||
Expected amortization expense in 2027 | 9 | ||
Expected amortization expense in 2028 | 4 | ||
Expected amortization expense thereafter | 8 | ||
Tax credit investments | 1,369 | 1,207 | |
Tax credit investments unfunded commitment | $ 573 | ||
Earliest Year | |||
Other Assets [Line Items] | |||
Tax credit investments commitment, year to be paid | 2024 | ||
Latest Year | |||
Other Assets [Line Items] | |||
Tax credit investments commitment, year to be paid | 2040 | ||
Variable Interest Entity, Primary Beneficiary | |||
Other Assets [Line Items] | |||
Tax credit investments | $ 1,126 | $ 1,042 | |
Tax credit investments unfunded commitment | 409 | ||
Variable Interest Entity, Primary Beneficiary | Off-Balance Sheet Obligations | |||
Other Assets [Line Items] | |||
Tax credit investments off balance sheet obligation | $ 3 | ||
Minimum | |||
Other Assets [Line Items] | |||
Estimated useful lives | 1 year | ||
Maximum | |||
Other Assets [Line Items] | |||
Estimated useful lives | 22 years |
Other Assets - Tax Credit Inves
Other Assets - Tax Credit Investments Expenses and Related Income Tax Credits and Other Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Proportional amortization recognized in tax provision | $ 185 | $ 161 | $ 226 |
Equity method expenses recognized in Other, net expenses | 0 | 9 | 13 |
Income tax credits and Other income tax benefits (a) recognized in tax provision | $ 204 | $ 196 | $ 182 |
Customer Deposits - Categorized
Customer Deposits - Categorized as Interest or Non-interest Bearing (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
U.S.: | ||
Interest-bearing | $ 128,146 | $ 109,119 |
Non-interest-bearing (includes Card Member credit balances of: 2023, $495; 2022, $605) | 557 | 663 |
Non-U.S.: | ||
Interest-bearing | 12 | 15 |
Non-interest-bearing (includes Card Member credit balances of: 2023, $426; 2022, $439) | 429 | 442 |
Total customer deposits | 129,144 | 110,239 |
Card Member Credit Balances | ||
U.S.: | ||
Non-interest-bearing (includes Card Member credit balances of: 2023, $495; 2022, $605) | 495 | 605 |
Non-U.S.: | ||
Non-interest-bearing (includes Card Member credit balances of: 2023, $426; 2022, $439) | $ 426 | $ 439 |
Customer Deposits - By Deposit
Customer Deposits - By Deposit Type (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits, by Type | ||
Savings and transaction accounts | $ 93,722 | $ 76,731 |
Certificates of deposit: | ||
Direct | 5,557 | 2,760 |
Third-party (brokered) | 12,960 | 13,331 |
Sweep accounts – Third-party (brokered) | 15,907 | 16,297 |
Total U.S. retail deposits | 128,146 | 109,119 |
Other deposits | 77 | 76 |
Total customer deposits | 129,144 | 110,239 |
Card Member Credit Balances | ||
Certificates of deposit: | ||
Card Member credit balances | $ 921 | $ 1,044 |
Customer Deposits - Scheduled M
Customer Deposits - Scheduled Maturities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Time Deposits By Maturity | |
2024 | $ 11,740 |
2025 | 4,370 |
2026 | 933 |
2027 | 776 |
2028 | 704 |
After 5 years | 0 |
Total | 18,523 |
Non-U.S. direct certificates of deposit | $ 6 |
Customer Deposits (Details Text
Customer Deposits (Details Textual) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Certificates of deposit that met or exceeded the insured limit | $ 1.8 | $ 1 |
Debt - Short-term Borrowings (D
Debt - Short-term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 1,293 | $ 1,348 |
Short-term Debt | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt (as a percent) | 1.03% | 0.94% |
Other Short Term Borrowings | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 1,293 | $ 1,348 |
Other Short Term Borrowings | Short-term Debt | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt (as a percent) | 1.03% | 0.94% |
Debt (Details Textual)
Debt (Details Textual) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||
Line of credit maximum capacity | $ 4,000,000,000 | $ 3,500,000,000 | |
Fees to maintain credit lines | 20,200,000 | 14,100,000 | |
Interest paid | $ 6,400,000,000 | 2,200,000,000 | $ 1,100,000,000 |
Minimum | |||
Debt Instrument [Line Items] | |||
Common equity tier one ratio | 4.5 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Common equity tier one ratio | 6.5 | ||
Short-term Debt | |||
Debt Instrument [Line Items] | |||
Fees to maintain credit lines | $ 12,000,000 | 7,800,000 | |
Lending Trust | |||
Debt Instrument [Line Items] | |||
Debt term | 3 years | ||
Line of credit maximum capacity | $ 3,000,000,000 | ||
Subsidiaries | |||
Debt Instrument [Line Items] | |||
Line of credit maximum capacity | 185,000,000 | 186,000,000 | |
Amount drawn from committed lines | 0 | 20,900,000 | |
Charge Trust | |||
Debt Instrument [Line Items] | |||
Line of credit maximum capacity | $ 3,000,000,000 | ||
Debt instrument, term | 3 years | ||
Specified date face amount of eligible notes issued | Jul. 15, 2026 | ||
Amount drawn from committed lines | $ 0 | $ 0 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 47,866 | $ 42,573 |
Unamortized Underwriting Fees | (93) | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 47,866 | $ 42,573 |
Year-End Stated Rate on Debt (as a percent) | 3.96% | 3.42% |
Unamortized Underwriting Fees | $ (93) | $ (84) |
Parent Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 33,952 | 29,432 |
Fixed Rate Senior Notes | Parent Company | Long-term Debt | American Express Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 20,930 | $ 23,813 |
Year-End Stated Rate on Debt (as a percent) | 3.48% | 3.34% |
Year-End Interest Rate with Swaps (as a percent) | 4.14% | 4% |
Fixed Rate Senior Notes | Subsidiaries | Long-term Debt | American Express Credit Corporation | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 330 | $ 328 |
Year-End Stated Rate on Debt (as a percent) | 3.30% | 3.30% |
Year-End Interest Rate with Swaps (as a percent) | 0% | |
Fixed Rate Senior Notes | Subsidiaries | Long-term Debt | Lending Trust | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 13,449 | $ 10,499 |
Year-End Stated Rate on Debt (as a percent) | 3.36% | 2.81% |
Year-End Interest Rate with Swaps (as a percent) | 3.49% | 0% |
Floating Rate Senior Notes | Parent Company | Long-term Debt | American Express Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 2,400 | $ 3,000 |
Year-End Stated Rate on Debt (as a percent) | 6.21% | 4.78% |
Year-End Interest Rate with Swaps (as a percent) | 0% | 0% |
Floating Rate Senior Notes | Subsidiaries | Long-term Debt | Lending Trust | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 0 | $ 2,125 |
Year-End Stated Rate on Debt (as a percent) | 0% | 4.67% |
Year-End Interest Rate with Swaps (as a percent) | 0% | |
Fixed-to-Floating Rate Senior Notes | Parent Company | Long-term Debt | American Express Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 8,769 | $ 1,250 |
Year-End Stated Rate on Debt (as a percent) | 5.38% | 4.42% |
Year-End Interest Rate with Swaps (as a percent) | 5.91% | 0% |
Fixed Rate Subordinated Notes | Parent Company | Long-term Debt | American Express Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 586 | $ 574 |
Year-End Stated Rate on Debt (as a percent) | 3.63% | 3.63% |
Year-End Interest Rate with Swaps (as a percent) | 6.74% | 5.46% |
Fixed-to-Floating Rate Subordinated Notes | Parent Company | Long-term Debt | American Express Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 1,257 | $ 750 |
Year-End Stated Rate on Debt (as a percent) | 5.24% | 4.99% |
Year-End Interest Rate with Swaps (as a percent) | 5.92% | 0% |
Floating Rate Subordinated Notes | Subsidiaries | Long-term Debt | Lending Trust | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 0 | $ 61 |
Year-End Stated Rate on Debt (as a percent) | 0% | 4.89% |
Year-End Interest Rate with Swaps (as a percent) | 0% | |
Fixed Rate Instruments | Subsidiaries | Financed Leases | Long-term Debt | Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 0 | $ 3 |
Year-End Stated Rate on Debt (as a percent) | 0% | 5.76% |
Year-End Interest Rate with Swaps (as a percent) | 0% | |
Floating Rate Borrowings | Subsidiaries | Long-term Debt | Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 238 | $ 254 |
Year-End Stated Rate on Debt (as a percent) | 0.42% | 0.41% |
Year-End Interest Rate with Swaps (as a percent) | 0% |
Debt - Annual Maturities of Lon
Debt - Annual Maturities of Long-term Debt Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Aggregate annual maturities on long-term debt obligations | ||
2024 | $ 10,355 | |
2025 | 12,563 | |
2026 | 8,870 | |
2027 | 6,750 | |
2028 | 1,350 | |
Thereafter | 8,523 | |
Total | 48,411 | |
Unamortized Underwriting Fees | (93) | |
Unamortized Discount and Premium | (505) | |
Impacts due to Fair Value Hedge Accounting | 53 | $ (236) |
Total Long-Term Debt | 47,866 | 42,573 |
Parent Company | ||
Aggregate annual maturities on long-term debt obligations | ||
2024 | 7,500 | |
2025 | 5,250 | |
2026 | 6,700 | |
2027 | 6,411 | |
2028 | 0 | |
Thereafter | 8,523 | |
Total | 34,384 | |
Total Long-Term Debt | 33,952 | $ 29,432 |
American Express Credit Corporation | ||
Aggregate annual maturities on long-term debt obligations | ||
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 339 | |
2028 | 0 | |
Thereafter | 0 | |
Total | 339 | |
Lending Trust | ||
Aggregate annual maturities on long-term debt obligations | ||
2024 | 2,750 | |
2025 | 7,250 | |
2026 | 2,100 | |
2027 | 0 | |
2028 | 1,350 | |
Thereafter | 0 | |
Total | 13,450 | |
Other Subsidiaries | ||
Aggregate annual maturities on long-term debt obligations | ||
2024 | 105 | |
2025 | 63 | |
2026 | 70 | |
2027 | ||
2028 | ||
Thereafter | ||
Total | $ 238 |
Other Liabilities - Summary (De
Other Liabilities - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of other liabilities | ||
Membership Rewards liability | $ 13,742 | $ 12,789 |
Book overdraft balances | 9,897 | 7,352 |
Deferred card and other fees, net | 3,442 | 3,027 |
Employee-related liabilities | 2,567 | 2,530 |
Card Member rebate and reward accruals | 2,061 | 2,126 |
Income tax liability | 1,275 | 1,651 |
Other | 8,655 | 7,875 |
Total | 41,639 | 37,350 |
Repatriation tax liability | $ 998 | $ 1,012 |
Other Liabilities - Deferred Ca
Other Liabilities - Deferred Card and Other Fees (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Deferred card and other fees | $ 3,818 | $ 3,380 |
Deferred direct acquisition costs | (158) | (173) |
Reserves for membership cancellations | (218) | (180) |
Deferred card and other fees, net | $ 3,442 | $ 3,027 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares unissued and available for grant (in shares) | 7 | 9 | 12 | |
Stock-based compensation expense | $ 450 | $ 373 | $ 326 | |
Stock-based compensation expense, income tax benefit | $ 110 | $ 90 | $ 78 | |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock options contractual term | 10 years | |||
Dividend yield (as a percent) | 1.40% | 1% | 1.50% | |
Expected volatility (as a percent) | 32% | 31% | 31% | |
Risk-free interest rate (as a percent) | 3.50% | 1.70% | 0.80% | |
Remaining performance period (in years) | 7 years 1 month 6 days | 7 years 1 month 6 days | 7 years 2 months 12 days | |
Weighted-average fair value per option (in dollars per share) | $ 60.03 | $ 55.30 | $ 32.38 | |
Stock-based compensation, unrecognized compensation cost | $ 32 | |||
Weighted-average remaining vesting period | 2 years 1 month 6 days | |||
Intrinsic value for options exercised | $ 26 | $ 56 | $ 86 | |
Cash received from exercise of stock options | 28 | 56 | 64 | |
Income tax benefit related to stock option exercises | $ 4 | $ 9 | $ 14 | |
Stock Option | Senior Executives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options contractual term | 7 years | |||
Dividend yield (as a percent) | 1.40% | |||
Expected volatility (as a percent) | 34% | |||
Risk-free interest rate (as a percent) | 3.90% | |||
Remaining performance period (in years) | 7 years | |||
Weighted-average fair value per option (in dollars per share) | $ 50.10 | |||
Stock Option | Senior Executives | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock Option | Senior Executives | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility (as a percent) | 45% | 42% | 41% | |
Risk-free interest rate (as a percent) | 3.70% | 1.40% | 0.20% | |
Remaining performance period (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days | |
Stock-based compensation, unrecognized compensation cost | $ 258 | |||
Weighted-average remaining vesting period | 1 year 8 months 12 days | |||
RSAs/RSUs Weighted-average grant date fair value of RSAs granted (in dollars per share) | $ 163.88 | $ 168.26 | $ 123.66 | |
Total fair value of shares vested | $ 389 | $ 323 | $ 227 | |
Liability-Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash paid upon vesting of PGs | $ 55 | $ 50 | $ 53 | |
Service and Performance-Based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
RSAs/RSUs Weighted-average grant date fair value of RSAs granted (in dollars per share) | $ 158.57 | |||
Service and Performance-Based RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting target (as a percent) | 0% | |||
Service and Performance-Based RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting target (as a percent) | 120% | |||
Service-Based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSAs/RSUs Weighted-average grant date fair value of RSAs granted (in dollars per share) | $ 172.02 | |||
Service-Based RSUs | 2022 and subsequent | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Service-Based RSUs | Prior to 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options and RSUs Outstanding and Changes (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Stock Options, Number | |
Beginning balance (in shares) | shares | 3,634 |
Granted (in shares) | shares | 230 |
Exercised (in shares) | shares | (311) |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Ending balance (in shares) | shares | 3,553 |
Stock Options, Weighted-Average Exercise Price | |
Beginning balance, weighted average exercise price (in dollars per share) | $ / shares | $ 113.80 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | 173.61 |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | 89.62 |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | 0 |
Expired, weighted average exercise price (in dollars per share) | $ / shares | 0 |
Ending balance, weighted average exercise price (in dollars per share) | $ / shares | $ 119.80 |
RSUs, Weighted-Average Grant-Date Fair Value | |
Options vested and expected to vest (in shares) | shares | 3,547 |
Options exercisable (in shares) | shares | 1,810 |
Options vested and expected to vest, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 119.74 |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 90.94 |
Service-Based RSUs | |
RSUs, Number | |
Beginning balance (in shares) | shares | 1,788 |
Granted (in shares) | shares | 910 |
Vested (in shares) | shares | (787) |
Forfeited (in shares) | shares | (84) |
Ending balance (in shares) | shares | 1,827 |
RSUs, Weighted-Average Grant-Date Fair Value | |
Beginning balance, weighted average grant price (in dollars per share) | $ / shares | $ 142.92 |
RSAs/RSUs Granted, Weighted Average Grant Price (in dollars per share) | $ / shares | 172.02 |
Vested, weighted average grant price (in dollars per share) | $ / shares | 134.97 |
Forfeited, weighted average grant price (in dollars per share) | $ / shares | 162.18 |
Ending balance, weighted average grant price (in dollars per share) | $ / shares | $ 159.95 |
Service and Performance-Based RSUs | |
RSUs, Number | |
Beginning balance (in shares) | shares | 3,472 |
Granted (in shares) | shares | 1,395 |
Vested (in shares) | shares | (1,498) |
Forfeited (in shares) | shares | (73) |
Ending balance (in shares) | shares | 3,296 |
RSUs, Weighted-Average Grant-Date Fair Value | |
Beginning balance, weighted average grant price (in dollars per share) | $ / shares | $ 135.57 |
RSAs/RSUs Granted, Weighted Average Grant Price (in dollars per share) | $ / shares | 158.57 |
Vested, weighted average grant price (in dollars per share) | $ / shares | 136.16 |
Forfeited, weighted average grant price (in dollars per share) | $ / shares | 153.04 |
Ending balance, weighted average grant price (in dollars per share) | $ / shares | $ 144.64 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used for Stock Options (Details) - Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Assumptions Used | |||
Dividend yield (as a percent) | 1.40% | 1% | 1.50% |
Expected volatility (as a percent) | 32% | 31% | 31% |
Risk-free interest rate (as a percent) | 3.50% | 1.70% | 0.80% |
Expected life of stock option | 7 years 1 month 6 days | 7 years 1 month 6 days | 7 years 2 months 12 days |
Weighted-average fair value per option (in dollars per share) | $ 60.03 | $ 55.30 | $ 32.38 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-average Remaining Contractual Life and Aggregate Intrinsic Value of Stock Options (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest | |
Weighted-average remaining contractual life, Outstanding | 5 years 2 months 12 days |
Aggregate intrinsic value, Outstanding | $ 240 |
Weighted-average remaining contractual life, Exercisable | 3 years 6 months |
Aggregate intrinsic value, Exercisable | $ 174 |
Weighted-average remaining contractual life, Vested and Expected to Vest | 5 years 2 months 12 days |
Aggregate intrinsic value, Vested and Expected to Vest | $ 240 |
Stock-Based Compensation - As_2
Stock-Based Compensation - Assumptions Used for RSUs (Details) - RSUs | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 45% | 42% | 41% |
Risk-free interest rate (as a percent) | 3.70% | 1.40% | 0.20% |
Remaining performance period (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plans | |||
Retirement Plans (Textuals) [Abstract] | |||
Total expense for all defined contribution retirement plans | $ 380 | $ 259 | $ 269 |
Other Postretirement Benefit Plans | |||
Retirement Plans (Textuals) [Abstract] | |||
Total net benefit | 12 | 24 | $ 26 |
Defined benefit plans, unfunded status | $ 212 | $ 278 |
Contingencies and Commitments_2
Contingencies and Commitments (Details Textual) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) state | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||
Total lease expense | $ 164 | $ 188 | $ 161 |
Weighted average remaining lease term | 19 years | ||
Weighted average lease discount rate (as a percent) | 3% | ||
Commitments related to agreements with certain cobrand partners | $ 14,000 | ||
American Express National Bank | |||
Loss Contingencies [Line Items] | |||
Carrying value of Federal Reserve Bank shares held | $ 132 | $ 132 | |
Violation Of Federal Antitrust Law And Consumer Laws Class Action Case | Holders of Visa and MasterCard Debit Cards | |||
Loss Contingencies [Line Items] | |||
Number of states with remaining claims | state | 8 | ||
Violation Of Federal Antitrust Law And Consumer Laws Class Action Case | Holders of Visa, MasterCard and Discover Credit Cards with no Rewards or Annual Fee | |||
Loss Contingencies [Line Items] | |||
Number of states with remaining claims | state | 2 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 0 | ||
Financial commitments, period | 5 years | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 400 | ||
Financial commitments, period | 10 years |
Contingencies and Commitments -
Contingencies and Commitments - Maturities of Outstanding Lease Commitments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Minimum aggregate rental commitment under all noncancelable operating leases | |
2024 | $ 159 |
2025 | 139 |
2026 | 121 |
2027 | 104 |
2028 | 98 |
Thereafter | 841 |
Total Outstanding Fixed Lease Payments | 1,462 |
Less: Amount representing interest | (536) |
Lease Liabilities | $ 926 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Margin on interest rate swap not netted | $ 175 | $ 8 | |
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Outstanding balance | Outstanding balance | |
Carrying values of hedged liabilities | $ 11,700 | $ 7,800 | |
Cumulative amount of fair value hedging adjustments | 53 | (236) | |
Increase (decrease) in interest expense on long term debt and other | 189 | (57) | $ (256) |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivatives | 25,300 | 21,700 | |
Other Expense | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) in changes in fair value of derivatives not designated as hedges | 82 | 8 | (21) |
Credit Valuation Adjustment | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, amount of hedged item | 0 | 0 | |
Fair Value Hedges | Fixed-Rate Debt Obligations | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, amount of hedged item | 11,700 | 8,100 | |
Net Investment Hedges | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivatives | 14,100 | 12,500 | |
Gain (loss) on net investment hedges, net of taxes | (640) | 237 | 176 |
Reclassifications out of AOCI | 0 | 0 | $ 0 |
Embedded Derivative | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivatives | 78 | 78 | |
Fair value of embedded derivative asset, gross | 18 | 27 | |
Embedded Derivative | Noninterest Income | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) on embedded derivative | $ (9) | $ 4 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Derivatives Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | $ 80 | $ 521 |
Total derivative liabilities, gross | 977 | 801 |
Derivative asset and derivative liability netting, assets | (57) | (257) |
Derivative asset and derivative liability netting, liabilities | (57) | (257) |
Cash collateral netting, assets | 0 | (11) |
Cash collateral netting, liabilities | (106) | (212) |
Total derivatives assets, net | 23 | 253 |
Total derivatives liabilities, net | $ 814 | $ 332 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Other Assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | $ 9 | $ 350 |
Other Assets | Interest Rate Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 0 | 0 |
Other Assets | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 9 | 350 |
Other Assets | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 71 | 171 |
Other Liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 554 | 462 |
Other Liabilities | Interest Rate Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 99 | 211 |
Other Liabilities | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 455 | 251 |
Other Liabilities | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | $ 423 | $ 339 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Gains and Losses (Details) - Interest Rate Contracts - Fair Value Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fixed-rate long-term debt | $ (289) | $ 473 | $ 385 |
Derivatives designated as hedging instruments | 290 | (476) | (385) |
Total | $ 1 | $ (3) | $ 0 |
Fair Values - Measured at Fair
Fair Values - Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investment securities: | ||
Equity securities | $ 66 | $ 41 |
Debt securities | 2,120 | 4,537 |
Derivatives, gross | 80 | 521 |
Total Assets | 2,266 | 5,099 |
Liabilities | ||
Derivatives, gross | 977 | 801 |
Total Liabilities | 977 | 801 |
Fair Value, Inputs, Level 1 | ||
Investment securities: | ||
Equity securities | 66 | 40 |
Debt securities | 0 | 0 |
Derivatives, gross | 0 | 0 |
Total Assets | 66 | 40 |
Liabilities | ||
Derivatives, gross | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Investment securities: | ||
Equity securities | 0 | 1 |
Debt securities | 2,046 | 4,490 |
Derivatives, gross | 62 | 494 |
Total Assets | 2,108 | 4,985 |
Liabilities | ||
Derivatives, gross | 977 | 801 |
Total Liabilities | 977 | 801 |
Fair Value, Inputs, Level 3 | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities | 74 | 47 |
Derivatives, gross | 18 | 27 |
Total Assets | 92 | 74 |
Liabilities | ||
Derivatives, gross | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Values - Not Measured at F
Fair Values - Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Card Member receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | $ 60,411 | $ 57,613 |
Card Member loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 125,995 | 107,964 |
Variable Interest Entity, Primary Beneficiary | Card Member receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 4,587 | 5,193 |
Variable Interest Entity, Primary Beneficiary | Card Member loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 28,590 | 28,461 |
Reported Value Measurement | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 47,000 | 34,000 |
Other financial assets | 63,000 | 60,000 |
Financial assets carried at other than fair value | ||
Loans, net | 128,000 | 110,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 143,000 | 123,000 |
Financial liabilities carried at other than fair value | ||
Long-term debt | 48,000 | 43,000 |
Reported Value Measurement | Certificates of deposit | ||
Financial liabilities carried at other than fair value | ||
Financial liabilities | 19,000 | 16,000 |
Estimate of Fair Value Measurement | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 47,000 | 34,000 |
Other financial assets | 63,000 | 60,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 143,000 | 123,000 |
Estimate of Fair Value Measurement | Variable Interest Entity, Primary Beneficiary | Card Member receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 4,600 | 5,200 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 45,000 | 32,000 |
Other financial assets | 0 | 0 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 2,000 | 2,000 |
Other financial assets | 63,000 | 60,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 143,000 | 123,000 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 0 | 0 |
Other financial assets | 0 | 0 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 |
Portion at Other than Fair Value Measurement | ||
Financial assets carried at other than fair value | ||
Loans, net | 133,000 | 113,000 |
Financial liabilities carried at other than fair value | ||
Long-term debt | 48,000 | 42,000 |
Portion at Other than Fair Value Measurement | Certificates of deposit | ||
Financial liabilities carried at other than fair value | ||
Financial liabilities | 18,000 | 16,000 |
Portion at Other than Fair Value Measurement | Variable Interest Entity, Primary Beneficiary | ||
Financial liabilities carried at other than fair value | ||
Long-term debt | 13,300 | 12,300 |
Portion at Other than Fair Value Measurement | Variable Interest Entity, Primary Beneficiary | Card Member loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 28,600 | 28,400 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Financial assets carried at other than fair value | ||
Loans, net | 0 | 0 |
Financial liabilities carried at other than fair value | ||
Long-term debt | 0 | 0 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 1 | Certificates of deposit | ||
Financial liabilities carried at other than fair value | ||
Financial liabilities | 0 | 0 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Financial assets carried at other than fair value | ||
Loans, net | 0 | 0 |
Financial liabilities carried at other than fair value | ||
Long-term debt | 48,000 | 42,000 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 2 | Certificates of deposit | ||
Financial liabilities carried at other than fair value | ||
Financial liabilities | 18,000 | 16,000 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 3 | ||
Financial assets carried at other than fair value | ||
Loans, net | 133,000 | 113,000 |
Financial liabilities carried at other than fair value | ||
Long-term debt | 0 | 0 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 3 | Certificates of deposit | ||
Financial liabilities carried at other than fair value | ||
Financial liabilities | $ 0 | $ 0 |
Fair Values (Details Textual)
Fair Values (Details Textual) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of equity securities without readily determinable fair values | $ 900 | $ 1,000 | |
Net upward adjustments of equity securities without readily determinable fair values | 18 | 94 | $ 729 |
Net downward adjustments of equity securities without readily determinable fair values | 142 | 388 | $ 2 |
Cumulative net unrealized gains for equity investments without readily determinable fair values | 1,100 | 1,200 | |
Cumulative net unrealized losses for equity investments without readily determinable fair values | 431 | 394 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of equity securities without readily determinable fair values | $ 0 | $ 600 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Guarantees [Abstract] | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | $ 1,000 |
Amount of related liability | $ 24 | $ 21 |
Common and Preferred Shares - C
Common and Preferred Shares - Common Shares (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Common shares, authorized (in shares) | 3,600 | 3,600 | 3,600 |
Schedule Of Stock By Class [Roll Forward] | |||
Shares issued and outstanding at beginning of year (in shares) | 743 | 761 | 805 |
Repurchases of common shares (in shares) | (22) | (20) | (46) |
Net shares issued for RSUs and stock option exercises (in shares) | 2 | 2 | 2 |
Shares issued and outstanding as of December 31 (in shares) | 723 | 743 | 761 |
Shares reserved for issuance under employee stock and employee benefit plans (in shares) | 16 |
Common and Preferred Shares (De
Common and Preferred Shares (Details Textual) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 08, 2023 | |
Class of Stock [Line Items] | ||||
Common share repurchases authorized (up to) (in shares) | 120 | |||
Common shares repurchased (in shares) | 22 | 20 | 46 | |
Cost basis of common stock repurchased | $ 3,650 | $ 3,502 | $ 7,652 | |
Common shares remaining under share repurchase authorizations (in shares) | 99 | |||
Shares held as treasury shares (in shares) | 2.3 | 2.4 | 2.5 | |
Cost basis of treasury stock | $ 252 | $ 262 | $ 271 | |
Preferred shares, authorized, up to (in shares) | 20 | 20 | ||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 | ||
Redemption price per preferred share (in dollars per share) | 1,000,000 | |||
Depositary shares redemption amount (in dollars per share) | $ 1,000 | |||
Equity adjustments in connection with redemption of Preferred Shares | $ 0 | $ 0 | 16 | |
Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred shares, par value (in dollars per share) | $ 1.667 | |||
Series B And Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Payments for redemption of preferred stock | 1,600 | |||
Equity adjustments in connection with redemption of Preferred Shares | 16 | |||
Repurchase Agreements | ||||
Class of Stock [Line Items] | ||||
Cost basis of common stock repurchased | $ 3,500 | 3,300 | 7,600 | |
Commissions and excise tax paid included in cost basis of common stock repurchased | $ 32 | |||
Commissions paid included in cost basis of common stock repurchased | $ 4 | $ 6 |
Common and Preferred Shares - P
Common and Preferred Shares - Preferred Shares (Details) - Series D Preferred Stock $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Preferred Shares [Line Items] | |
Securities issued (in shares) | shares | 1,600 |
Depositary shares issued (in shares) | shares | 1,600,000 |
Fixed dividend rate per annum (as a percent) | 3.55% |
Floating dividend rate per annum (as a percent) | 2.854% |
Aggregate liquidation preference | $ | $ 1,600 |
Carrying value | $ | $ 1,584 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 24,711 | $ 22,177 | $ 22,984 |
Net change | 138 | (265) | (50) |
Ending Balance | 28,057 | 24,711 | 22,177 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | (145) | 75 | 90 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (3,210) | (2,945) | (2,895) |
Net change | 138 | (265) | (50) |
Ending Balance | (3,072) | (3,210) | (2,945) |
Net Unrealized Gains (Losses) on Debt Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (64) | 23 | 65 |
Net change | 50 | (87) | (42) |
Ending Balance | (14) | (64) | 23 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | 16 | (27) | (13) |
Foreign Currency Translation Adjustment Gains (Losses), Net of Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (2,622) | (2,392) | (2,229) |
Net change | 51 | (230) | (163) |
Ending Balance | (2,571) | (2,622) | (2,392) |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | (158) | 75 | 51 |
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (524) | (576) | (731) |
Net change | 37 | 52 | 155 |
Ending Balance | (487) | (524) | (576) |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | $ (3) | $ 27 | $ 52 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Loss) (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) | $ 138 | $ (265) | $ (50) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) | $ 0 | $ 0 | $ 0 |
Service Fees and Other Revenu_3
Service Fees and Other Revenue and Other Expenses - Service Fees and Other Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non Interest Revenues [Line Items] | |||
Total non-interest revenues | $ 47,381 | $ 42,967 | $ 34,630 |
Service fees and other revenue | |||
Non Interest Revenues [Line Items] | |||
Service fees | 1,518 | 1,444 | 1,385 |
Foreign currency-related revenue | 1,428 | 1,202 | 624 |
Delinquency fees | 963 | 809 | 637 |
Travel commissions and fees | 637 | 507 | 244 |
Other fees and revenues | 459 | 559 | 426 |
Total non-interest revenues | $ 5,005 | $ 4,521 | $ 3,316 |
Service Fees and Other Revenu_4
Service Fees and Other Revenue and Other Expenses - Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Service Fees and Other Revenue and Other Expenses [Abstract] | |||
Data processing and equipment | $ 2,805 | $ 2,606 | $ 2,431 |
Professional services | 2,029 | 2,074 | 1,958 |
Net unrealized and realized losses (gains) on Amex Ventures investments | 152 | 302 | (767) |
Other | 1,821 | 1,499 | 1,195 |
Total Other expenses | $ 6,807 | $ 6,481 | $ 4,817 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |||
Restructuring reserves | $ 216 | $ 135 | $ 67 |
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Labor and Related Expense | Labor and Related Expense | Labor and Related Expense |
Restructuring charges, net of revisions | $ 179 | $ 142 | $ (10) |
Cumulative restructuring expense | $ 277 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax expense: | |||
U.S. federal | $ 2,455 | $ 2,445 | $ 1,656 |
U.S. state and local | 351 | 339 | 351 |
Non-U.S. | 662 | 476 | 328 |
Total current income tax expense | 3,468 | 3,260 | 2,335 |
Deferred income tax (benefit) expense: | |||
U.S. federal | (952) | (763) | 231 |
U.S. state and local | (139) | (117) | 22 |
Non-U.S. | (238) | (309) | 41 |
Total deferred income tax (benefit) expense | (1,329) | (1,189) | 294 |
Income tax expense (benefit) | $ 2,139 | $ 2,071 | $ 2,629 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | ||||
U.S. statutory federal income tax rate | 21% | 21% | 21% | |
Accumulated earnings intended to be permanently reinvested outside the U.S. | $ 1,100 | |||
Aggregate state income and foreign withholding taxes on foreign earnings | 100 | |||
Income taxes paid | 3,300 | $ 3,000 | $ 1,600 | |
Unrecognized tax benefits | 875 | 962 | 1,024 | $ 790 |
Unrecognized tax benefits that would affect effective tax rate | 670 | 750 | 780 | |
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax | 117 | |||
Unrecognized tax benefits that, if recognized, could impact effective tax rate | 92 | |||
Unrecognized tax benefits income tax penalties and interest expense | 30 | 10 | $ 40 | |
Unrecognized tax benefits income tax penalties and interest accrued | 410 | $ 380 | ||
U.S. | ||||
Income Tax Contingency [Line Items] | ||||
NOL carryforwards | 13 | |||
Non U.S. | ||||
Income Tax Contingency [Line Items] | ||||
NOL carryforwards | 1,200 | |||
FTC carryforwards | $ 132 | |||
Non U.S. | Minimum | ||||
Income Tax Contingency [Line Items] | ||||
FTC carryforward, expiration date | Dec. 31, 2030 | |||
Non U.S. | Maximum | ||||
Income Tax Contingency [Line Items] | ||||
FTC carryforward, expiration date | Dec. 31, 2034 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective tax rate reconciliation | |||
U.S. statutory federal income tax rate | 21% | 21% | 21% |
(Decrease) increase in taxes resulting from: | |||
Tax credits and tax-exempt income | (0.70%) | (0.90%) | (0.10%) |
State and local income taxes, net of federal benefit | 2.40% | 3.10% | 3% |
Non-U.S. subsidiaries’ earnings | (0.80%) | (0.10%) | 1.10% |
Tax settlements and lapse of statute of limitations | (2.00%) | (2.10%) | (0.30%) |
Valuation allowances | 0.10% | (0.10%) | 0% |
Other | 0.30% | 0.70% | (0.10%) |
Actual tax rates | 20.30% | 21.60% | 24.60% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Reserves not yet deducted for tax purposes | $ 4,552 | $ 4,052 |
Employee compensation and benefits | 335 | 353 |
Net operating loss and tax credit carryforwards | 466 | 411 |
Capitalized developed software | 743 | 0 |
Other | 723 | 776 |
Gross deferred tax assets | 6,819 | 5,592 |
Valuation allowance | (614) | (537) |
Deferred tax assets after valuation allowance | 6,205 | 5,055 |
Deferred tax liabilities: | ||
Intangibles and fixed assets | 683 | 671 |
Deferred revenue | 62 | 126 |
Deferred interest | 114 | 118 |
Investment in joint ventures | 0 | 17 |
Other | 566 | 618 |
Gross deferred tax liabilities | 1,425 | 1,550 |
Net deferred tax assets | $ 4,780 | $ 3,505 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 962 | $ 1,024 | $ 790 |
Increases: | |||
Current year tax positions | 132 | 119 | 64 |
Tax positions related to prior years | 40 | 30 | 225 |
Decreases: | |||
Tax positions related to prior years | (50) | (30) | (14) |
Settlements with tax authorities | (160) | (74) | (15) |
Lapse of statute of limitations | (49) | (104) | (17) |
Effects of foreign currency translations | 0 | (3) | (9) |
Balance, December 31 | $ 875 | $ 962 | $ 1,024 |
Earnings Per Common Share (EP_3
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Basic and diluted: | ||||
Net income | $ 8,374 | $ 7,514 | $ 8,060 | |
Preferred dividends | (58) | (57) | (71) | |
Equity-related adjustments | 0 | 0 | (16) | |
Net income available to common shareholders | 8,316 | 7,457 | 7,973 | |
Earnings allocated to participating share awards | (64) | (57) | (56) | |
Net income attributable to common shareholders | $ 8,252 | $ 7,400 | $ 7,917 | |
Denominator: | ||||
Basic: Weighted-average common stock (in shares) | 735,000 | 751,000 | 789,000 | |
Add: Weighted-average stock options (in shares) | 1,000 | 1,000 | 1,000 | |
Diluted (in shares) | 736,000 | 752,000 | 790,000 | |
Basic EPS (in dollars per share) | [1] | $ 11.23 | $ 9.86 | $ 10.04 |
Diluted EPS (in dollars per share) | [1] | $ 11.21 | $ 9.85 | $ 10.02 |
Stock Option | ||||
Denominator: | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,380 | 390 | 10 | |
[1] Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. |
Regulatory Matters and Capita_3
Regulatory Matters and Capital Adequacy (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Regulatory Matters And Capital Adequacy | ||
Common Equity Tier 1 required, Minimum capital ratio | 0.045 | |
Risk-based capital required, Well-capitalized ratios, Minimum capital ratios | 0.060 | |
Minimum capital ratios | 0.080 | |
Leverage capital required, Minimum capital ratios | 0.040 | |
Parent Company | American Express Company | ||
Regulatory capital ratios | ||
CET1 capital | $ 23,174 | $ 20,030 |
Tier 1 capital | 24,779 | 21,627 |
Total capital | $ 28,784 | $ 24,926 |
CET1 capital ratio | 0.105 | 0.103 |
Tier 1 capital ratio | 0.113 | 0.111 |
Total capital ratio | 0.131 | 0.128 |
Tier 1 leverage ratio | 0.099 | 0.099 |
Regulatory Matters And Capital Adequacy | ||
Common Equity Tier 1 required, Minimum capital ratio | 0.070 | |
Risk-based capital required, Well-capitalized ratios, Well-capitalized ratios | 0.060 | |
Risk-based capital required, Well-capitalized ratios, Minimum capital ratios, including buffer | 0.085 | |
Well-capitalized ratios | 0.100 | |
Minimum capital ratios | 0.105 | |
Leverage capital required, Minimum capital ratios | 0.040 | |
Subsidiaries | American Express National Bank | ||
Regulatory capital ratios | ||
CET1 capital | $ 17,038 | $ 14,820 |
Tier 1 capital | 17,038 | 14,820 |
Total capital | $ 19,548 | $ 17,273 |
CET1 capital ratio | 0.116 | 0.113 |
Tier 1 capital ratio | 0.116 | 0.113 |
Total capital ratio | 0.133 | 0.132 |
Tier 1 leverage ratio | 0.095 | 0.097 |
Regulatory Matters And Capital Adequacy | ||
Common Equity Tier 1 required, Well-capitalized ratios | 0.065 | |
Common Equity Tier 1 required, Minimum capital ratio | 0.070 | |
Risk-based capital required, Well-capitalized ratios, Well-capitalized ratios | 0.080 | |
Risk-based capital required, Well-capitalized ratios, Minimum capital ratios, including buffer | 0.085 | |
Well-capitalized ratios | 0.100 | |
Minimum capital ratios | 0.105 | |
Leverage capital required, Well-capitalized ratios | 0.050 | |
Leverage capital required, Minimum capital ratios | 0.040 |
Regulatory Matters and Capita_4
Regulatory Matters and Capital Adequacy (Details Textual) $ in Billions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Restricted net assets of subsidiaries | $ 13.6 |
American Express National Bank | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Dividends paid from retained earnings to its parent company | $ 3.6 |
Significant Credit Concentrat_3
Significant Credit Concentrations (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Maximum Credit Exposure by Category | ||
Total on-balance sheet | $ 245 | $ 213 |
Customer Concentration Risk | Individuals | On-balance sheet assets | ||
Maximum Credit Exposure by Category | ||
Total on-balance sheet | 178 | 156 |
Customer Concentration Risk | Individuals | United States | On-balance sheet assets | ||
Maximum Credit Exposure by Category | ||
Total on-balance sheet | 145 | 129 |
Customer Concentration Risk | Individuals | Outside the United States | On-balance sheet assets | ||
Maximum Credit Exposure by Category | ||
Total on-balance sheet | 33 | 27 |
Customer Concentration Risk | Financial Services | On-balance sheet assets | ||
Maximum Credit Exposure by Category | ||
Total on-balance sheet | 12 | 11 |
Customer Concentration Risk | Other | On-balance sheet assets | ||
Maximum Credit Exposure by Category | ||
Total on-balance sheet | 17 | 17 |
Customer Concentration Risk | Federal Reserve Bank | On-balance sheet assets | ||
Maximum Credit Exposure by Category | ||
Total on-balance sheet | 37 | 25 |
Customer Concentration Risk | U.S. Government and agencies | On-balance sheet assets | ||
Maximum Credit Exposure by Category | ||
Total on-balance sheet | $ 1 | $ 4 |
Significant Credit Concentrat_4
Significant Credit Concentrations (Details Textual) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Concentration Risk [Line Items] | ||
Unused credit available to customers | $ 398 | $ 350 |
Geographic | Commitments to Extend Credit | United States | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 80% | 80% |
Reportable Operating Segments_3
Reportable Operating Segments and Geographic Operations (Details Textual) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Number of operating segments | 4 |
Reportable Operating Segments_4
Reportable Operating Segments and Geographic Operations - Selected Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | $ 47,381 | $ 42,967 | $ 34,630 |
Revenue from contracts with customers | 37,218 | 34,219 | 27,716 |
Interest income | 19,983 | 12,658 | 9,033 |
Interest expense | 6,849 | 2,763 | 1,283 |
Total revenues net of interest expense | 60,515 | 52,862 | 42,380 |
Pretax income (loss) | 10,513 | 9,585 | 10,689 |
Total assets | 261,108 | 228,354 | 189,000 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | (106) | (54) | 26 |
Revenue from contracts with customers | (37) | (7) | 172 |
Interest income | 2,186 | 655 | 165 |
Interest expense | 2,283 | 758 | 208 |
Total revenues net of interest expense | (203) | (157) | (17) |
Pretax income (loss) | (2,410) | (2,227) | (1,008) |
Total assets | 33,000 | 26,000 | 19,000 |
USCS | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | 18,464 | 16,440 | 12,989 |
Revenue from contracts with customers | 13,715 | 12,478 | 9,823 |
Interest income | 12,336 | 8,457 | 6,328 |
Interest expense | 2,684 | 983 | 395 |
Total revenues net of interest expense | 28,116 | 23,914 | 18,922 |
Pretax income (loss) | 5,433 | 5,400 | 5,958 |
Total assets | 107,000 | 94,000 | 77,000 |
CS | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | 12,931 | 12,196 | 9,833 |
Revenue from contracts with customers | 11,379 | 10,844 | 8,659 |
Interest income | 3,328 | 2,070 | 1,408 |
Interest expense | 1,483 | 697 | 330 |
Total revenues net of interest expense | 14,776 | 13,569 | 10,911 |
Pretax income (loss) | 2,861 | 2,880 | 2,936 |
Total assets | 55,000 | 51,000 | 45,000 |
ICS | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | 9,472 | 8,262 | 6,761 |
Revenue from contracts with customers | 6,155 | 5,301 | 4,368 |
Interest income | 2,076 | 1,453 | 1,116 |
Interest expense | 1,118 | 654 | 442 |
Total revenues net of interest expense | 10,430 | 9,061 | 7,435 |
Pretax income (loss) | 973 | 578 | 929 |
Total assets | 42,000 | 37,000 | 33,000 |
GMNS | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | 6,620 | 6,123 | 5,021 |
Revenue from contracts with customers | 6,006 | 5,603 | 4,694 |
Interest income | 57 | 23 | 16 |
Interest expense | (719) | (329) | (92) |
Total revenues net of interest expense | 7,396 | 6,475 | 5,129 |
Pretax income (loss) | 3,656 | 2,954 | 1,874 |
Total assets | $ 24,000 | $ 20,000 | $ 15,000 |
Reportable Operating Segments_5
Reportable Operating Segments and Geographic Operations - Geographic Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | $ 60,515 | $ 52,862 | $ 42,380 |
Pretax income (loss) from continuing operations | 10,513 | 9,585 | 10,689 |
United States | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | 47,140 | 41,396 | 33,103 |
Pretax income (loss) from continuing operations | 10,717 | 10,383 | 10,325 |
EMEA | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | 5,633 | 4,871 | 3,643 |
Pretax income (loss) from continuing operations | 854 | 550 | 460 |
APAC | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | 4,372 | 3,835 | 3,418 |
Pretax income (loss) from continuing operations | 592 | 376 | 420 |
LACC | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | 3,571 | 2,917 | 2,238 |
Pretax income (loss) from continuing operations | 760 | 500 | 494 |
Other Unallocated | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | (201) | (157) | (22) |
Pretax income (loss) from continuing operations | $ (2,410) | $ (2,224) | $ (1,010) |
Parent Company - Condensed Stat
Parent Company - Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-interest revenues | |||
Total non-interest revenues | $ 47,381 | $ 42,967 | $ 34,630 |
Interest income | 19,983 | 12,658 | 9,033 |
Interest expense | 6,849 | 2,763 | 1,283 |
Total revenues net of interest expense | 60,515 | 52,862 | 42,380 |
Expenses | |||
Salaries and employee benefits | 8,067 | 7,252 | 6,240 |
Other | 6,807 | 6,481 | 4,817 |
Total expenses | 45,079 | 41,095 | 33,110 |
Income tax benefit | 2,139 | 2,071 | 2,629 |
Net income | 8,374 | 7,514 | 8,060 |
Net unrealized pension and other postretirement benefits, net of tax | 37 | 52 | 155 |
Comprehensive income | 8,512 | 7,249 | 8,010 |
Parent Company | |||
Non-interest revenues | |||
Other | 407 | 388 | 343 |
Total non-interest revenues | 407 | 388 | 343 |
Interest income | 1,558 | 614 | 96 |
Interest expense | 1,436 | 857 | 482 |
Total revenues net of interest expense | 529 | 145 | (43) |
Expenses | |||
Salaries and employee benefits | 487 | 408 | 359 |
Other | 408 | 372 | 346 |
Total expenses | 895 | 780 | 705 |
Loss before income tax and equity in net income of subsidiaries | (366) | (635) | (748) |
Income tax benefit | (163) | (244) | (248) |
Equity in net income of subsidiaries and affiliates | 8,577 | 7,905 | 8,560 |
Net income | 8,374 | 7,514 | 8,060 |
Net unrealized pension and other postretirement benefits, net of tax | 5 | 10 | 151 |
Other comprehensive income (loss), net | 133 | (275) | (201) |
Comprehensive income | $ 8,512 | $ 7,249 | $ 8,010 |
Parent Company - Condensed Bala
Parent Company - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Other assets | $ 19,114 | $ 17,689 | ||
Total assets | 261,108 | 228,354 | $ 189,000 | |
Liabilities and Shareholders’ Equity | ||||
Long-term debt | 47,866 | 42,573 | ||
Total liabilities | 233,051 | 203,643 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 28,057 | 24,711 | $ 22,177 | $ 22,984 |
Total liabilities and shareholders’ equity | 261,108 | 228,354 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 9,652 | 8,188 | ||
Equity in net assets of subsidiaries and affiliates | 28,019 | 24,702 | ||
Loans to subsidiaries and affiliates | 25,471 | 22,658 | ||
Due from subsidiaries and affiliates | 1,261 | 1,342 | ||
Other assets | 349 | 156 | ||
Total assets | 64,752 | 57,046 | ||
Liabilities and Shareholders’ Equity | ||||
Accounts payable and other liabilities | 2,188 | 2,271 | ||
Due to subsidiaries and affiliates | 555 | 632 | ||
Long-term debt | 33,952 | 29,432 | ||
Total liabilities | 36,695 | 32,335 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 28,057 | 24,711 | ||
Total liabilities and shareholders’ equity | $ 64,752 | $ 57,046 |
Parent Company - Condensed St_2
Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||
Net income | $ 8,374 | $ 7,514 | $ 8,060 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by operating activities | 18,559 | 21,079 | 14,645 |
Cash Flows from Investing Activities | |||
Net cash used in investing activities | (24,433) | (33,689) | (10,529) |
Cash Flows from Financing Activities | |||
Proceeds from long-term debt | 15,674 | 23,230 | 7,788 |
Payments of long-term debt | (10,703) | (18,906) | (11,662) |
Issuance of American Express preferred shares | 0 | 0 | 1,584 |
Redemption of American Express preferred shares | 0 | 0 | (1,600) |
Issuance of American Express common shares | 28 | 56 | 64 |
Repurchase of American Express common shares and other | (3,650) | (3,502) | (7,652) |
Dividends paid | (1,780) | (1,565) | (1,448) |
Net cash provided by (used in) financing activities | 18,379 | 24,509 | (14,933) |
Net increase (decrease) in cash and cash equivalents | 12,682 | 11,886 | (10,937) |
Cash and cash equivalents at beginning of year | 33,914 | 22,028 | 32,965 |
Cash and cash equivalents at end of year | 46,596 | 33,914 | 22,028 |
Parent Company | |||
Cash Flows from Operating Activities | |||
Net income | 8,374 | 7,514 | 8,060 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in net income of subsidiaries and affiliates | (8,577) | (7,905) | (8,560) |
Dividends received from subsidiaries and affiliates | 5,326 | 5,549 | 9,102 |
Other operating activities, primarily with subsidiaries and affiliates | 360 | 160 | (305) |
Net cash provided by operating activities | 5,483 | 5,318 | 8,297 |
Cash Flows from Investing Activities | |||
Net increase in loans to subsidiaries and affiliates | (2,836) | (4,850) | (176) |
Investments in subsidiaries and affiliates | 0 | (1) | (60) |
Net cash used in investing activities | (2,836) | (4,851) | (236) |
Cash Flows from Financing Activities | |||
Net decrease in short-term debt from subsidiaries and affiliates | 0 | (136) | (2,636) |
Proceeds from long-term debt | 9,969 | 13,202 | 3,000 |
Payments of long-term debt | (5,750) | (5,675) | (5,000) |
Issuance of American Express preferred shares | 0 | 0 | 1,584 |
Redemption of American Express preferred shares | 0 | 0 | (1,600) |
Issuance of American Express common shares | 28 | 56 | 64 |
Repurchase of American Express common shares and other | (3,650) | (3,502) | (7,652) |
Dividends paid | (1,780) | (1,565) | (1,448) |
Net cash provided by (used in) financing activities | (1,183) | 2,380 | (13,688) |
Net increase (decrease) in cash and cash equivalents | 1,464 | 2,847 | (5,627) |
Cash and cash equivalents at beginning of year | 8,188 | 5,341 | 10,968 |
Cash and cash equivalents at end of year | 9,652 | 8,188 | 5,341 |
Non-Cash Investing Activities | |||
Loans to subsidiaries and affiliates | 0 | 0 | (1,787) |
Non-Cash Financing Activities | |||
Proceeds from long-term debt | $ 0 | $ 0 | $ 1,787 |