Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 20, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN EXPRESS COMPANY | |
Trading Symbol | AXP | |
Entity Central Index Key | 4,962 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 923,780,898 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||||
Non-interest revenues | ||||||||
Discount revenue | $ 4,824 | $ 4,946 | $ 9,467 | $ 9,606 | ||||
Net card fees | 715 | 667 | 1,414 | 1,334 | ||||
Other fees and commissions | 702 | 727 | 1,382 | 1,435 | ||||
Other | 545 | 521 | 1,031 | 989 | ||||
Total non-interest revenues | 6,786 | 6,861 | 13,294 | 13,364 | ||||
Interest income | ||||||||
Interest on loans | 1,818 | 1,776 | 3,756 | 3,571 | ||||
Interest and dividends on investment securities | 34 | 41 | 70 | 82 | ||||
Deposits with banks and other | 33 | 20 | 64 | 41 | ||||
Total interest income | 1,885 | 1,837 | 3,890 | 3,694 | ||||
Interest expense | ||||||||
Deposits | 150 | 109 | 300 | 212 | ||||
Long-term debt and other | 286 | 305 | 561 | 612 | ||||
Total interest expense | 436 | 414 | 861 | 824 | ||||
Net interest income | 1,449 | 1,423 | 3,029 | 2,870 | ||||
Total revenues net of interest expense | 8,235 | 8,284 | 16,323 | 16,234 | ||||
Provisions for losses | ||||||||
Charge card | 153 | 165 | 322 | 339 | ||||
Card Member loans | 285 | 285 | 512 | 520 | ||||
Other | 25 | 17 | 63 | 28 | ||||
Total provisions for losses | 463 | 467 | 897 | 887 | ||||
Total revenues net of interest expense after provisions for losses | 7,772 | 7,817 | 15,426 | 15,347 | ||||
Expenses | ||||||||
Marketing and promotion | 788 | 761 | 1,515 | 1,370 | ||||
Card Member Rewards | 1,766 | 1,799 | 3,469 | 3,439 | ||||
Card Member services and other | 281 | 242 | 563 | 503 | ||||
Salaries and employee benefits | 1,451 | 1,250 | 2,789 | 2,555 | ||||
Other, net | 470 | 1,535 | 1,890 | 2,934 | ||||
Total expenses | 4,756 | 5,587 | 10,226 | 10,801 | ||||
Pretax income | 3,016 | 2,230 | 5,200 | 4,546 | ||||
Income tax provision | 1,001 | 757 | 1,759 | 1,548 | ||||
Income from continuing operations | 2,015 | 1,473 | 3,441 | 2,998 | ||||
Net income | $ 2,015 | $ 1,473 | $ 3,441 | $ 2,998 | ||||
Earnings Per Common Share, Basic (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 2.11 | [1] | $ 1.43 | [1] | $ 3.55 | [2] | $ 2.92 | [2] |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 2.1 | [3] | $ 1.42 | [3] | $ 3.54 | [4] | $ 2.9 | [4] |
Average common shares outstanding for earnings per common share: | ||||||||
Basic | 938 | 1,009 | 949 | 1,013 | ||||
Diluted | 941 | 1,013 | 952 | 1,018 | ||||
Cash dividends declared per common share | $ 0.29 | $ 0.29 | $ 0.58 | $ 0.55 | ||||
[1] | Represents net income less ( i ) earnings allocated to participating share awards of $ 17 million and $ 11 million for the three months ended June 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 19 million and $ 20 million for the three months ended June 30 , 2016 and 2015 , respectively. | |||||||
[2] | Represents net income less ( i ) earnings allocate d to participating share awards of $ 28 million and $ 22 million for the six months ended June 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 40 million and $ 20 million for the six months ended June 30 , 2016 and 2015 , respectively. | |||||||
[3] | Represents net income less ( i ) earnings allocated to participating share awards of $ 17 million and $ 11 million for the three months ended June 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 19 million and $ 20 million for the three months ended June 30 , 2016 and 2015 , respectively. | |||||||
[4] | Represents net income less ( i ) earnings allocate d to participating share awards of $ 28 million and $ 22 million for the six months ended June 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 40 million and $ 20 million for the six months ended June 30 , 2016 and 2015 , respectively. |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements of Income [Abstract] | ||||
Earnings allocated to participating share awards | $ 17 | $ 11 | $ 28 | $ 22 |
Dividends Preferred Stock | $ 19 | $ 20 | $ 40 | $ 20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 2,015 | $ 1,473 | $ 3,441 | $ 2,998 |
Other comprehensive income (loss): | ||||
Net unrealized securities gains, net of tax | 5 | (20) | 7 | (20) |
Foreign currency translation adjustments, net of tax | (130) | 11 | (126) | (244) |
Pension and other postretirement benefit gains | 6 | 6 | 32 | 29 |
Other comprehensive income (loss) | (119) | (3) | (87) | (235) |
Comprehensive income | $ 1,896 | $ 1,470 | $ 3,354 | $ 2,763 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Comprehensive Income Loss Textuals [Abstract] | ||||
Net unrealized securities gains (losses), tax | $ 2 | $ (10) | $ 2 | $ (11) |
Foreign currency translation adjustments, tax | 100 | (48) | 61 | 40 |
Net unrealized pension and other postretirement benefit gains, tax | $ 10 | $ (3) | $ 29 | $ 16 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | ||
Cash and due from banks | $ 2,811 | $ 2,935 |
Interest-bearing deposits in banks | 30,379 | 19,569 |
Short-term investment securities | 577 | 258 |
Total cash and cash equivalents | 33,767 | 22,762 |
Card Member loans and receivables held for sale (includes gross loans and receivables available to settle obligations of consolidated variable interest entities) | 0 | 14,992 |
Accounts receivable | ||
Card Member receivables (includes gross receivables available to settle obligations of consolidated variable interest entity), less reserves | 44,800 | 43,671 |
Other receivables, less reserves | 2,697 | 3,024 |
Loans | ||
Card Member loans (includes gross loans available to settle obligations of consolidated variable interest entity), less reserves | 58,796 | 57,545 |
Other loans, less reserves | 1,132 | 1,254 |
Investment securities | 3,892 | 3,759 |
Premises and equipment, less accumulated depreciation and amortization | 4,210 | 4,108 |
Other assets (includes restricted cash of consolidated variable interest entities) | 10,348 | 10,069 |
Total assets | 159,642 | 161,184 |
Liabilities | ||
Customer deposits | 54,404 | 54,997 |
Travelers Cheques and other prepaid products | 2,803 | 3,247 |
Accounts payable | 11,729 | 11,822 |
Short-term borrowings (includes debt issued by consolidated variable interest entity) | 2,343 | 4,812 |
Long-term debt (includes debt issued by consolidated variable interest entities) | 50,649 | 48,061 |
Other liabilities | 17,002 | 17,572 |
Total liabilities | 138,930 | 140,511 |
Shareholders' Equity | ||
Preferred shares | 0 | 0 |
Common shares | 185 | 194 |
Additional paid-in capital | 12,868 | 13,348 |
Retained earnings | 10,280 | 9,665 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, net of tax | 65 | 58 |
Foreign currency translation adjustments, net of tax | (2,170) | (2,044) |
Net unrealized pension and other postretirement benefit losses, net of tax | (516) | (548) |
Total accumulated other comprehensive loss | (2,621) | (2,534) |
Total shareholders' equity | 20,712 | 20,673 |
Total liabilities and shareholders' equity | $ 159,642 | $ 161,184 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Card Member receivables, gross | $ 45,223 | $ 44,133 |
Card Member loans, gross | 59,887 | 58,573 |
Other assets | 10,348 | 10,069 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 129 | 41 |
Accounts receivable | ||
Card Member receivables, reserves | 423 | 462 |
Other receivables, reserves | 50 | 43 |
Card Member loans and receivables HFS | 0 | 14,992 |
Loans | ||
Card Member loans, reserves | 1,091 | 1,028 |
Other loans, reserves | 36 | 20 |
Accumulated depreciation and amortization | 4,855 | 6,801 |
Restricted cash | 35 | 155 |
Short Term Borrowings | 2,343 | 4,812 |
Long-term Debt | $ 50,649 | $ 48,061 |
Common shares, par value | $ 0.2 | $ 0.2 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 925,000,000 | 969,000,000 |
Common shares, outstanding | 925,000,000 | 969,000,000 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock Shares Issued | 1,600 | 1,600 |
Preferred Stock, Shares Outstanding | 1,600 | 1,600 |
Preferred shares, par value | $ 1.667 | $ 1.667 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, tax | $ 34 | $ 32 |
Foreign currency translation adjustments, tax | (39) | (100) |
Net unrealized pension and other postretirement benefit losses, tax | (194) | (223) |
Variable Interest Enterprise [Member] | ||
Card Member receivables, gross | 5,828 | 6,649 |
Card Member loans, gross | 25,334 | 23,559 |
Accounts receivable | ||
Card Member loans and receivables HFS | 0 | 4,966 |
Loans | ||
Restricted cash | 35 | 155 |
Short Term Borrowings | 0 | 100 |
Long-term Debt | $ 14,609 | $ 13,602 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Cash Flows from Operating Activities | |||
Net income | $ 3,441 | $ 2,998 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Provisions for losses | 897 | 887 | |
Depreciation and amortization | 536 | 514 | |
Deferred taxes and other | (852) | 146 | |
Stock-based compensation | 133 | 140 | |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other receivables | 293 | (271) | |
Other assets | (107) | 1,616 | |
Accounts payable and other liabilities | (759) | (1,381) | |
Travelers Cheques and other prepaid products | (444) | (414) | |
Net cash provided by operating activities | 3,138 | 4,235 | |
Cash Flows from Investing Activities | |||
Sales of available-for-sale investment securities | 45 | 0 | |
Maturities and redemptions of available-for-sale investment securities | 567 | 991 | |
Sales of other investments | 0 | 0 | |
Purchase of investments | (791) | (1,212) | |
Net decrease (increase) in Card Member receivables and loans, including held for sale | [1] | 13,002 | (569) |
Purchase of premises and equipment, net of sales | (649) | (537) | |
Acquisitions/Dispositions, net of cash acquired | (162) | (74) | |
Net decrease (increase) in restricted cash | 126 | (1,529) | |
Net cash provided by (used in) investing activities | 12,138 | (2,930) | |
Cash Flows from Financing Activities | |||
Net (decrease) increase in customer deposits | (594) | 3,017 | |
Net (decrease) increase in short-term borrowings | (2,520) | 1,033 | |
Issuance of long-term debt | 3,778 | 3,457 | |
Principal payments on long-term debt | (1,558) | (8,410) | |
Issuance of American Express preferred shares | 0 | 841 | |
Issuance of American Express common shares | 75 | 143 | |
Repurchase of American Express common shares | (2,852) | (1,971) | |
Dividends paid | (601) | (533) | |
Net cash used in financing activities | (4,272) | (2,423) | |
Effect of foreign currency exchange rates on cash and cash equivalents | 1 | (99) | |
Net increase (decrease) in cash and cash equivalents | 11,005 | (1,217) | |
Cash and cash equivalents at beginning of period | 22,762 | 22,288 | |
Cash and cash equivalents at end of period | $ 33,767 | $ 21,071 | |
[1] | Re fer to Note 2 for additional information. |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Increase decrease in debt exchange [Line Items] | ||
Sale of premises and equipment | $ 2 | $ 32 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation | 1 . Basis of Presentation The Company American Express Company (the Company) is a global services company that provides customers with access to products, insights and experiences that enrich lives and build business success. The Company’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Business Travel (GBT JV). The Company’s various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold throu gh various channels, including direct mail, online applications, in-house and third-party sales forces and direct response advertising . Effective for the first quarter of 2016, the Company realigned its segment presentation to reflect the organizational c hanges announced during the fourth quarter of 2015. Prior periods have been restated to conform to the new reportable operating segments, which are as follows: U.S. Consumer Services (USCS), including the proprietary U.S. Consumer Card Services business an d travel services in the United States ; International Consumer and Network Services (ICNS), including the proprietary International Consumer Card Services business, Global Network Services (GNS) business and travel services outside the United States ; Globa l Commercial Services (GCS), including the proprietary Global Corporate Payments (GCP) business, small business services businesses in the United States and internationally ( collectively, Global Small Business Services ), merchant financing products and for eign exchange services operations ; and Global Merchant Services (GMS), including the Global Merchant Services business and global loyalty coalition businesses. Corporate functions and certain other businesses and operations are included in Corporate & Other. The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial S tatements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the Annual Report). If not mate rially different, certain footnote disclosures included therein have been omitted from this Quarterly Report on Form 10-Q. The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, w hich consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entir e year. The preparation of Consolidated Financial S tatements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of asset s, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ. Certain reclassifications of prior period amounts have bee n made to conform to the current period presentation. During 2016, the Company determined that in the Consolidated Statements of Cash Flows for the comparative periods ended June 30, 2015, September 30, 2015 and December 31, 2015, certain activities relate d to long-term debt repayments were misclassified between financing activities and operating activities. There is no impact to the Consolidated Statements of Income or Consolidated Balance Sheets. The Company has evaluated the effects of these misclassific ations and concluded that none are material to any of its previously issued quarterly or annual Consolidated Financial Statements. Nevertheless, the Company has elected to revise prospectively the comparative periods mentioned above. For the six months en ded June 30, 2015, this revision resulted in a $66 million decrease to both Net cash used in financing activities and Net cash provided by operating activities. In addition, travel commissions and fees, which were separately disclosed on the Consolidated S tatements of Income historically, are now included within Other fees and commissions. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition. The guidance establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. The guidance, as amended, supersedes most of the current revenue recognition requirements, and is effective January 1, 2018, with early adoption as of January 1, 2017, permitted. The Company does not intend to adopt the new standar d early and continues to evaluate the impact this guidance, including the method of implementation, will have on its financial position, results of operations and cash flows, among other items. In January 2016, the FASB issued new accounting guidance on th e recognition and measurement of financial assets and fin ancial liabilities. The guidance , which is effective January 1, 2018, makes targeted changes to current GAAP, specifically to the classification and measurement of equity securities, and to certain d isclosure requirements associated with the fair value of financial instr uments. The Company continues to e valuate the impact this guidance will have on its financial position, results of operations and cash flows, among other items. In February 2016, the F ASB issued new accounting guidance on leases. The guidance, which is effective January 1, 2019, with early adoption permitted, requires virtually all leases to be recognized on the Consolidated Balance Sheets . The Company continues to evaluate the impact t his guidance will have on its financial position, results of operations and cash flows, among other items. In March 2016, the FASB issued new accounting guidance on employee share-based payments. The guidance, which is effective January 1, 2017, with early adoption permitted, simplifies various aspects of the accounting for share-based payment transactions, including the income tax consequences, accounting for award forfeitures, and classification on the Consolidated S tatement s of C ash Flows. The Company co ntinues to evaluate the impact this guidance will have on its financial position, results of operations and cash flows, among other items. In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, whi ch is effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model , which is based on expected losses, and differs significantly fr om the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward- looking information and will likely result in earlier recognition of credit reserves . The Company is currently evaluating the impact the new guidance will have on its financial position, result s of operations and cash flows; h owever, it is expec ted that the new CECL model will alter the assumptions used in calculating credit losses on Card Member loans and receivables, among other financial instruments, and may result in material changes to the Company’s credit reserve s. |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2016 | |
Business Combination Disclosure [Abstract] | |
Divestitures | 2 . Business Events During the first half of 2016, the Company completed the sales of substantially all of its outstanding Card Member loans and receivable s held for sale (HFS) and recognized gains, as an expense reduction, in Other expenses, of $127 million and $1.1 billion during the three months ended March 31, 2016 and June 30, 2016, respectively. In addition, the Company reclassified $245 million and $1 million of retained Card Member loans and receivables HFS back to Card Membe r loans and Card Member receivables held for investment, respectively. The impact of the sales, including the recognition of the proceeds received and the reclassification of the retained Card Member loans and receivables, is reported within the investing section of the Consolidated Statements of Cash Flows as a net decrease in Card Member receivables and loans, including held for sale. |
Loans and Accounts Receivable
Loans and Accounts Receivable | 6 Months Ended |
Jun. 30, 2016 | |
Loans Notes Trade And Other Receivables Disclosure [Abstract] | |
Loans and Accounts Receivable | 3 . Loans and Accounts Receivable T he Company’s lending and charge payment card products result in the generation of Card Member loans and Card Member receivables , respectively. This Note is presented excluding amounts associated with the Card Member loans and receivables HFS as of December 31, 2015; the Company did not have any Card Member loans and receivables HFS as of June 30 , 2016 . Card Member l oans by segment and Other loans as of June 30 , 2016 and December 31, 2015 consisted of: (Millions) 2016 2015 U.S. Consumer Services (a) $ 44,594 $ 43,495 International Consumer and Network Services 6,600 7,072 Global Commercial Services 8,693 8,006 Card Member loans 59,887 58,573 Less: Reserve for losses 1,091 1,028 Card Member loans, net $ 58,796 $ 57,545 Other loans, net (b) $ 1,132 $ 1,254 Includes approximately $ 25.3 billion and $ 23.6 billion of gross Card Member loans available to settle obligations o f a consolidated variable interest entity (VIE) as of June 30 , 2016 and December 31, 2015 , respectively. Other loans primarily represent loans to merchants . Other loans are presented net of reserves for losses of $ 36 million and $ 20 million as of June 30 , 2016 and December 31, 2015 , respectively. Card Member a ccounts receivable by segment and Other receivables as of June 30 , 2016 and December 31, 2015 consisted of : (Millions) 2016 2015 U.S. Consumer Services (a) $ 10,587 $ 11,807 International Consumer and Network Services 5,582 5,599 Global Commercial Services 29,054 26,727 Card Member receivables (b) 45,223 44,133 Less: Reserve for losses 423 462 Card Member receivables, net $ 44,800 $ 43,671 Other receivables, net (c) $ 2,697 $ 3,024 Includes $ 5.8 b illion and $ 6.6 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of June 30 , 2016 and December 31, 2015 , respectively. Includes approximately $ 12.7 billion and $ 11.9 billion of Card Member receivables outside the United States as of June 30 , 2016 and December 31, 2015 , respectively . Other receivables primarily represent amounts related to ( i ) GNS partner banks for items such as royalty and franchise fees , (ii) certain merchants for billed discount revenue, and ( iii) l oyalty coalition partners for points issued , as well as program p articipation and servicing fees . Other receivables are presented net of r eserves for losses of $ 50 million and $ 43 million as of June 30 , 2016 and December 31, 2015 , respectively. Card Member Loans and Card Member Receivables Aging Generally , a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of June 30 , 2016 and December 31, 2015 : 30-59 60-89 90+ Days Days Days Past Past Past 2016 (Millions) Current Due Due Due Total Card Member Loans: U.S. Consumer Services $ 44,120 $ 128 $ 100 $ 246 $ 44,594 International Consumer and Network Services 6,491 33 23 53 6,600 Global Commercial Services Global Small Business Services 8,547 27 20 50 8,644 Global Corporate Payments (a) (b) (b) (b) 1 49 Card Member Receivables: U.S. Consumer Services $ 10,464 $ 44 $ 24 $ 55 $ 10,587 International Consumer and Network Services 5,503 24 15 40 5,582 Global Commercial Services Global Small Business Services 13,516 64 39 87 13,706 Global Corporate Payments (a) (b) (b) (b) 111 15,348 30-59 60-89 90+ Days Days Days Past Past Past 2015 (Millions) Current Due Due Due Total Card Member Loans: U.S. Consumer Services $ 43,063 $ 128 $ 94 $ 210 $ 43,495 International Consumer and Network Services 6,961 34 25 52 7,072 Global Commercial Services Global Small Business Services 7,867 26 18 40 7,951 Global Corporate Payments (a) (b) (b) (b) 1 55 Card Member Receivables: U.S. Consumer Services $ 11,646 $ 54 $ 32 $ 75 $ 11,807 International Consumer and Network Services 5,515 24 18 42 5,599 Global Commercial Services Global Small Business Services 12,734 69 45 102 12,950 Global Corporate Payments (a) (b) (b) (b) 124 13,777 For GCP Card Member receivables in GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 9 0 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. Delinquency data for periods other than 90 days past billing is not ava ilable due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. Credit Qua lity Indicators for Card Member Loans and Receivables The following table s prese nt the key credit quality indicators as of or for the six months ended June 30 : 2016 2015 Net Write-Off Rate Net Write-Off Rate 30+ Days 30+ Days Principal, Past Due Principal, Past Due Principal Interest, & as a % of Principal Interest, & as a % of Only (a) Fees (a) Total Only (a) Fees (a) Total Card Member Loans: U.S. Consumer Services 1.5 % 1.7 % 1.1 % 1.4 % 1.7 % 0.9 % International Consumer and Network Services 2.0 % 2.4 % 1.7 % 2.0 % 2.5 % 1.6 % Global Small Business Services 1.3 % 1.6 % 1.1 % 1.3 % 1.5 % 0.9 % Card Member Receivables: U.S. Consumer Services 1.5 % 1.8 % 1.2 % 1.7 % 1.9 % 1.4 % International Consumer and Network Services 2.2 % 2.4 % 1.4 % 2.0 % 2.2 % 1.5 % Global Small Business Services 1.7 % 2.0 % 1.4 % 2.0 % 2.3 % 1.6 % 2016 2015 Net Loss Net Loss Ratio as 90+ Days Ratio as 90+ Days a % of Past Billing a % of Past Billing Charge as a % of Charge as a % of Volume Receivables Volume Receivables Card Member Receivables: Global Corporate Payments 0.09 % 0.7 % 0.10 % 0.7 % The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. Impaired Card Member Loans and R eceivables Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the Card Member agreement. In certain cases , these Card Member loans and receivables are included in on e of the Company’s various Troubled Debt Restructuring (TDR) modification programs. The following tables provide additional information with respect to the Company’s impaired Card Member loans and receivables. Impaired Card Member receivables are not significant for ICNS as of June 30 , 2016 and December 31, 2015 ; therefore, the segment’s receivables are not included in the following tables . As of June 30, 2016 Over 90 days Accounts Classified Past Due & as a TDR (c) Total Unpaid Accruing Non- Out of Impaired Principal Allowance 2016 (Millions) Interest (a) Accruals (b) In Program (d) Program (e) Balance Balance for TDRs Card Member Loans: U.S. Consumer Services $ 162 $ 141 $ 174 $ 116 $ 593 $ 545 $ 52 International Consumer and Network Services 53 ― ― ― 53 53 ― Global Commercial Services 29 32 28 24 113 104 10 Card Member Receivables: U.S. Consumer Services ― ― 8 4 12 11 5 Global Commercial Services ― ― 18 7 25 25 14 Total $ 244 $ 173 $ 228 $ 151 $ 796 $ 738 $ 81 As of December 31, 2015 Over 90 days Accounts Classified Past Due & as a TDR (c) Total Unpaid Accruing Non- Out of Impaired Principal Allowance 2015 (Millions) Interest (a) Accruals (b) In Program (d) Program (e) Balance Balance for TDRs Card Member Loans: U.S. Consumer Services $ 140 $ 124 $ 149 $ 89 $ 502 $ 463 $ 44 International Consumer and Network Services 52 ― ― ― 52 51 ― Global Commercial Services 24 26 23 18 91 85 9 Card Member Receivables: U.S. Consumer Services ― ― 11 3 14 14 8 Global Commercial Services ― ― 16 3 19 19 12 Total $ 216 $ 150 $ 199 $ 113 $ 678 $ 632 $ 73 The Company’s policy is generally to accrue inte rest through the date of write -off ( typically 18 0 days past due). The Company establishes reserves for interest that it believes will not be collected. Amounts presented exclude loans classified as a TDR. Non-accrual loans not in modification programs primarily include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest. Accounts classified as a TDR include $ 19 million and $ 20 million that are over 90 days past due and accruing interest and $ 16 million and $ 18 milli on that are non-accruals as of June 30 , 2016 and December 31, 2015 , respectively . In Program TDRs include Card Member accounts that are currently enrolled in a modification program. Out of Program TDRs include $114 million and $84 million of Card Member accounts that have successfully completed a modification program and $ 37 million and $29 million of Card M ember accounts that were not in compliance with the terms of the modification programs as of June 30 , 2016 and December 31, 2015 , respectively . The following table provides information with respect to the Company’s average balances of, and inte rest income recognized from, impaired Card Member loans and the average balances of impaired Card Member receivables for the three and six months ended June 30 : Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Interest Interest Average Income Average Income (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Consumer Services $ 551 $ 12 $ 555 $ 24 International Consumer and Network Services 54 4 53 8 Global Commercial Services 102 3 103 6 Card Member Receivables: U.S. Consumer Services 13 ― 12 ― Global Commercial Services 25 ― 20 ― Total $ 745 $ 19 $ 743 $ 38 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Interest Interest Average Income Average Income (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Consumer Services $ 582 $ 11 $ 578 $ 22 International Consumer and Network Services 55 3 58 7 Global Commercial Services 109 3 106 5 Card Member Receivables: U.S. Consumer Services 10 ― 14 ― Global Commercial Services 17 ― 24 ― Total $ 773 $ 17 $ 780 $ 34 Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs for the three and six months ended June 30 , 2016 and 2015 . The ICNS Card Member loans and receivables modifications were not significant ; therefore, this segment is not included in the following TDR disclosures. Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Average Average Average Payment Average Payment Number of Outstanding Interest Rate Term Number of Outstanding Interest Rate Term Accounts Balances (a) Reduction Extension Accounts Balances (a) Reduction Extension (in thousands) ($ in millions) (% Points) (# of Months) (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 7 $ 50 10 (b) 15 $ 107 11 (b) Card Member Receivables 2 27 (c) 17 5 65 (c) 17 Total 9 $ 77 20 $ 172 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Average Average Average Payment Average Payment Number of Outstanding Interest Rate Term Number of Outstanding Interest Rate Term Accounts Balances (a) Reduction Extension Accounts Balances (a) Reduction Extension (in thousands) ($ in millions) (% Points) (# of Months) (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 10 $ 70 10 (b) 21 $ 150 11 (b) Card Member Receivables 3 34 (c) 12 6 74 (c) 12 Total 13 $ 104 27 $ 224 Represents the outstanding balance im mediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. M odifications did not reduce the principal balance . For Card Member loans, there have been no payment term extensions. The Company does not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The follo wing table provides information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs that subsequently defaulted w ithin 12 months of modification during the three and six months ended June 30 , 2016 and 2015 . A Card Member is considered in default of a modification program after one and up to two consecutive missed payments, depending on the terms of the modification program . For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Aggregated Aggregated Outstanding Outstanding Number of Balances Number of Balances Accounts Upon Default (a) Accounts Upon Default (a) (in thousands) ($ in millions) (in thousands) ($ in millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 1 $ 9 2 $ 18 Card Member Receivables 1 1 2 2 Total 2 $ 10 4 $ 20 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Aggregated Aggregated Outstanding Outstanding Number of Balances Number of Balances Accounts Upon Default (a) Accounts Upon Default (a) (in thousands) ($ in millions) (in thousands) ($ in millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 3 $ 15 5 $ 25 Card Member Receivables 1 1 2 2 Total 4 $ 16 7 $ 27 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables. |
Reserves for Losses
Reserves for Losses | 6 Months Ended |
Jun. 30, 2016 | |
Reserves For Losses Card Member Loans and Receivables Disclosure [Abstract] | |
Reserve for Losses | 4 . Reserves for Losses Reserves for losses relating to Card Member loans and receivables represent management’s best estimate of the probable inherent losses in the Company’s outstanding portfolio of loans and receivables, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. This Note is presented excluding amounts associated with the Card Member loans and receivables HFS as of December 31, 2015 ; the Company did not have any Card Member loans and receivables HFS as of June 30 , 2016 . Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the six months ended June 30 : (Millions) 2016 2015 Balance, January 1 $ 1,028 $ 1,201 Provisions (a) 512 520 Net write-offs Principal (b) (437) (502) Interest and fees (b) (80) (85) Other (c) 68 (2) Balance, June 30 $ 1,091 $ 1,132 Provisions for principal, interest and fee reserve components. Consists of principal write-offs, less recoveries of $ 179 million and $ 212 million , including net write-offs from TDRs of $ 17 million and $ 22 million , for the six months ended June 30 , 2016 and 2015 , respectively. Recoveries of interest and fees were de minimis . Includes foreign currency translation adjustments of $ (2) million and $ (8) million and other adjustment s of $ 3 million and $ 6 million for t he six months ended June 30 , 2016 and 2015 , respectively. T he six months ended June 30 , 2016 also includes reserves of $7 million in the first quarter and $60 million in the second quarter associated with $20 million and $245 million of retained Card Member loans, respectively, reclassified from HFS to held for investment during those periods as a result of the respective sales of the JetBlue Airways Corporation (JetBlue) and Costco Wholesale Corporation in the United States (Costco) cobrand card portfolios. Card Member Loans Evaluated Individually and Collectively for Impairment The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of June 30 , 2016 and December 31, 2015 : (Millions) 2016 2015 Card Member loans evaluated individually for impairment (a) $ 342 $ 279 Related reserves (a) $ 62 $ 53 Card Member loans evaluated collectively for impairment (b) $ 59,545 $ 58,294 Related reserves (b) $ 1,029 $ 975 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans , and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. Changes in Card Member Receivables Reserve for Losses The following table presents changes in the Card Member receivables reserve for losses for the six months ended June 30: (Millions) 2016 2015 Balance, January 1 $ 462 $ 465 Provisions (a) 322 339 Net write-offs (b) (359) (370) Other (c) (2) (14) Balance, June 30 $ 423 $ 420 P rovisions for principal and fee reserve components. Consists of principal and fee components, less recoveries of $ 202 million and $ 201 million, including net write-offs from TDRs of $ 16 million and $ 42 million, for the six months ended June 30 , 2016 and 2015 , respectively. Includes foreign currency translation adjustments of $ (1) million and $ (7) million and other adjustments of $ (1) million and $ (7) million for the six months ended June 30 , 2016 and 2015 , respectively . Card Member Receivables Evaluated Individually and Collectively for Impairment The following table presents Card Member receivables evaluated individually and collectively for impair ment , and related reserves , as of June 30 , 2016 and December 31, 2015 : (Millions) 2016 2015 Card Member receivables evaluated individually for impairment (a) $ 37 $ 33 Related reserves (a) $ 19 $ 20 Card Member receivables evaluated collectively for impairment $ 45,186 $ 44,100 Related reserves (b) $ 404 $ 442 Represents receivables modified as a TDR and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 5. Investment Securities Investment securities principally include debt securities the Company classifies as available-for- sale and carries at fair value on the Consolidated Balance Sheets , with unrealized gains (losses) recorded in Accumulated Other Comprehensive Loss (AOCI) , net of income taxes . Realized gains and losses are recognized on a trade-date basis i n the Consolidated Statements of Income upon disposition of the securities using the specific identification method. The following is a summar y of investment securities as of June 30 , 2016 and December 31, 2015 : 2016 2015 Gross Gross Estimated Gross Gross Estimated Unrealized Unrealized Fair Unrealized Unrealized Fair Description of Securities (Millions) Cost Gains Losses Value Cost Gains Losses Value State and municipal obligations $ 2,530 $ 72 $ ― $ 2,602 $ 2,813 $ 85 $ (5) $ 2,893 U.S. Government agency obligations 2 ― ― 2 2 ― ― 2 U.S. Government treasury obligations 354 14 ― 368 406 4 (1) 409 Corporate debt securities 26 1 ― 27 29 1 ― 30 Mortgage-backed securities (a) 111 5 ― 116 117 4 ― 121 Equity securities 1 ― ― 1 1 ― ― 1 Foreign government bonds and obligations 718 9 ― 727 250 6 (1) 255 Other (b) 50 ― (1) 49 50 ― (2) 48 Total $ 3,792 $ 101 $ (1) $ 3,892 $ 3,668 $ 100 $ (9) $ 3,759 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Other comprises investments in various mutual funds. The following table provides information about the Company’s investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of June 30 , 2016 and December 31, 2015 : 2016 2015 Less than 12 months 12 months or more Less than 12 months 12 months or more Gross Gross Gross Gross Description of Securities (Millions) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and municipal obligations $ ― $ ― $ ― ― $ 100 $ (3) $ 13 $ (2) U.S. Government treasury obligations ― ― ― ― 253 (1) ― ― Foreign government bonds and obligations ― ― ― ― 99 (1) ― ― Other ― ― 33 (1) ― ― 33 (2) Total $ ― $ ― $ 33 $ (1) $ 452 $ (5) $ 46 $ (4) The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of June 30, 2016 and December 31, 2015: Less than 12 months 12 months or more Total Ratio of Fair Value to Gross Gross Gross Amortized Cost Number of Estimated Unrealized Number of Estimated Unrealized Number of Estimated Unrealized (Dollars in millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2016: 90%–100% ― $ ― $ ― 24 $ 36 $ (1) 24 $ 36 $ (1) Less than 90% ― ― ― ― ― ― ― ― ― Total as of June 30, 2016 ― $ ― $ ― 24 $ 36 $ (1) 24 $ 36 $ (1) 2015: 90%–100% 52 $ 450 $ (5) 15 $ 37 $ (2) 67 $ 487 $ (7) Less than 90% ― ― ― 2 9 (2) 2 9 (2) Total as of December 31, 2015 52 $ 450 $ (5) 17 $ 46 $ (4) 69 $ 496 $ (9) Overall, for the investment securities in gross unrealized loss positions ( i ) the Company does not intend to sell the investment securities, (ii ) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses , and (iii ) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment during the periods presented. Contractual maturities of investment securities with stated maturities as of June 30, 2016 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 815 $ 817 Due after 1 year but within 5 years 172 177 Due after 5 years but within 10 years 413 435 Due after 10 years 2,341 2,413 Total (a) $ 3,741 $ 3,842 Balances primarily represent investments in state and municipal obligations, and foreign government bonds and obligations. The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. |
Asset Securitizations
Asset Securitizations | 6 Months Ended |
Jun. 30, 2016 | |
Asset Securitizations [Abstract] | |
Asset Securitizations | 6 . Asset Securitizations The Company periodically securitizes Card Member loans and receivables arising from its card business , including Card Member loans and receivables HFS, through the transfer of those assets to securitization trusts. The t rusts then issue debt securities to third-party investors, collaterali zed by the transferred assets. The following table provides information on the restricted cash held by the American Express Issuance Trust II (the Charge Trust) and the American Expres s Credit Account Master Trust (the Lending Trust, collectively the Trusts) as of June 30 , 2016 and December 31, 2015 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2016 2015 Charge Trust $ 2 $ 2 Lending Trust 33 153 Total $ 35 $ 155 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. American Express Travel Related Services Company, Inc. ( TRS ) , in its role as servicer of the Trusts, has the power to direct the most significant activity of the Trusts, which is the collection of the underlying Card Member loans and receivables. In addition, TRS directly and indirectly (through its consolidated subsidiaries) holds all of the variable interests in both Trusts, with the exception of the de bt securities issued to third-party investors. As of June 30 , 2016 , TRS’ direct and indirect ownership of variable interests was $ 13.9 billion for the Lending Trust and $ 2.5 billion for the Charge Trust. These variable interests held by TRS provide it with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Tr ust and the Charge Trust. Based on these considerations, TRS is the primary beneficiary of both Trusts and therefore consolidates both Trusts. Under the respective t erms of the Charge Trust and the Lending Trust agreements, the occurrence of certain trigg ering 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 amortiza tion of debt securities. During the six months ended June 30 , 2016 and the year ended December 31, 2015 , no such triggering events occurred. |
Customer Deposits
Customer Deposits | 6 Months Ended |
Jun. 30, 2016 | |
Deposit Liabilities Disclosures [Abstract] | |
Customer Deposits | 7 . Customer Deposits As of June 30 , 2016 and December 31, 2015 , customer deposits we re categorized as interest bearing or non-interest bearing , as follows: (Millions) 2016 2015 U.S.: Interest bearing $ 53,666 $ 54,102 Non-interest bearing (includes Card Member credit balances of: 2016, $311 million; 2015, $389 million) 343 478 Non-U.S.: Interest bearing 89 82 Non-interest bearing (includes Card Member credit balances of: 2016, $293 million; 2015, $323 million) 306 335 Total customer deposits $ 54,404 $ 54,997 C ustomer deposits by deposit type as of June 30 , 2016 and December 31, 2015 were as follows: (Millions) 2016 2015 U.S. retail deposits: Savings accounts – Direct $ 30,221 $ 29,023 Certificates of deposit: Direct 287 281 Third-party (brokered) 13,460 13,856 Sweep accounts – Third-party (brokered) 9,698 10,942 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 134 183 Card Member credit balances ― U.S. and non-U.S. 604 712 Total customer deposits $ 54,404 $ 54,997 The scheduled maturities of certificates of deposit as of June 30 , 2016 were as follows: (Millions) U.S. Non-U.S. Total 2016 $ 2,030 $ 5 $ 2,035 2017 3,657 5 3,662 2018 3,197 ― 3,197 2019 2,332 ― 2,332 2020 2,517 ― 2,517 After 5 years 14 ― 14 Total $ 13,747 $ 10 $ 13,757 As of June 30 , 2016 and December 31, 2015 , certificates of deposit in denominations of $25 0,000 or more , in the aggregate, were as follows: (Millions) 2016 2015 U.S. $ 113 $ 105 Non-U.S. 3 1 Total $ 116 $ 106 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Contingencies Disclosure [Abstract] | |
Contingencies | 8 . Contingencies In the ordinary course of business, the Company and its subsidiaries are subject to various claims, investigations, examinations, pending and potential legal actions, and other matters relating to compliance with laws and regulations (collectively, legal proceedings). The Company discloses its material legal proceedings under Part II, Item 1. “Legal Proceedings” in this Quarterly Report on Form 10-Q and Part I, Item 3. “Legal Proceedings” in the Annual Report . The Company has recorded reserves for certain of its outstanding legal proceedings. A reserve is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated r ange of possible losses, as applicable . The Company’s legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members. These legal proceedings involve various lines of business of the Company and a variety of claims (including, but not limited to, common law tort, contract, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against the Company specify t he damages claimed by the plaintiff or class, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against the Company are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable the Company to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficiently such that the Company is able to estimate an amount of loss or a range of possible loss . For those disclosed material legal proceedings where a loss is reasonably possible in future periods, whether in excess of a rela ted reserve for legal contingencies or where there is no such reserve, and for which the Company is able to estimate a range of possible loss, the current estimated range is zero to $ 350 million in exce ss of any reserves related to th o se matters. This range represents management’s estimate based on currently available information and does not represent the Company’s maximum loss exposure; actual results may vary significantly. As such proceedings evolve, including the merchant claims described unde r “Legal Proceedings ” in the Annual Report, the Company may need to increase its range of possible loss or reserves for legal contingencies . Based on its current knowledge, and taking into consideration its litigation-related liabilities, the Company beli eves it is not a party to, nor are any of its properties the subject of, any legal proceeding that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, it is possible that the outcome of legal proceedings, including the possible resolution of merchant claims, could have a material impact on the Company’s results of operations . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 9 . Derivatives and Hedging Activities The Company uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rate s , foreign exchange rates , and equity index or price , and are carried at fair value on the Consolidated Balance Sheets . These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of the Com pany’s market risk management. The Company does not transact in derivatives for trading purposes. In relation to the Company’s credit risk, under the terms of the derivative agreements it has with its various counterpartie s, the Company is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event . Based on the assessment of credit risk of the Company’s derivative counterpartie s as of June 30 , 2016 and December 31, 2015 , the Company does not have derivative positions that warrant credit valuation adjustments. The following t able summarizes the total fair value, excluding interest acc ruals, of derivative assets and l iabilities as of June 30 , 2016 and December 31, 2015 : Other Assets Other Liabilities Fair Value Fair Value (Millions) 2016 2015 2016 2015 Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges $ 452 $ 236 $ ― $ 9 Foreign exchange contracts Net investment hedges 216 191 141 57 Total derivatives designated as hedging instruments 668 427 141 66 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (a) 475 117 248 135 Total derivatives, gross 1,143 544 389 201 Less: Cash collateral netting (b) (361) (155) ― ― Derivative asset and derivative liability netting (c) (169) (107) (169) (107) Total derivatives, net (d) $ 613 $ 282 $ 220 $ 94 Includes foreign currency derivatives embedded in certain operating agreements. Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. The Company received non-cash collateral from a counterparty in the form of security interests in U.S. Treasury securities with a fair value of $30 million as of June 30, 2016 , none of which was sold or repledged . Such non-cash collateral economically reduced the Company’s risk exposure to $583 million but did not reduce the net exposure on the Company’ s Consolidated Balance Sheets. The C ompany did not have any such non-cash collateral as of December 31, 2015 . Additionally, the Company posted $ 159 million and $ 149 million as of June 30 , 2016 and December 31, 2015 , respectively , as initial margin on its centrally c leared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances. Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative a ssets and derivative liabilities are presented within O ther assets and O ther liabilities on the Consolidated Balance Sheets. A majority of the Company’s derivative assets and liabilities as of June 30 , 2016 and December 31, 2015 are subject to mast er netting agreements with its deriva tive counterparties. T he Company has no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets. Fair Value Hedges The Company is exposed to interest rate risk associated with its fixed-rate long-term debt. The Company uses interest rate swaps to economically convert certain fixed-rate debt obligations to floating-rate obligations at the time of issuance. T he Company hedged $ 20.3 billion and $ 18.8 billion of its fixed-rate debt to floating-rate debt using interest rate swaps as of June 30 , 2016 and December 31, 2015 , respectively . The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s fair value hedges for the three and six months ended June 30 : Three Months Ended June 30 (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative relationship Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 2016 2015 Interest rate contracts Other expenses $ 61 $ (89) Other expenses $ (53) $ 85 $ 8 $ (4) Six Months Ended June 30 (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative relationship Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 2016 2015 Interest rate contracts Other expenses $ 226 $ (26) Other expenses $ (224) $ 29 $ 2 $ 3 The Company also recognized a net reduction in inter est expense on long-term debt of $ 59 million and $ 71 million for the three months ended June 30 , 2016 and 2015 , respectively, and $ 118 million and $ 140 million for the six months ended June 30 , 2016 and 2015 , respectively, primarily related to the net settlements (interest accruals) on the Company’s interest rate derivatives designated as fair value hedges. Net Investment Hedges The effective portion of the gain or (loss) on net investment hedges, net of taxes, recorded in AOCI as part of the cu mulative translation adjustment, was $ 135 million and $ (34) million for the three months ended June 30 , 2016 and 2015 , respectively, and $ 43 million and $ 161 million for the six months ended June 30 , 2016 and 2015 , respectively, with a ny ineffective portion recognized in Other expenses during the period of change . The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s net investment hedges for the three and six months ended June 30: Three Months Ended June 30: (Millions) Gains (losses) recognized in income Amount reclassified from AOCI into income Net hedge ineffectiveness Description Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 Net investment hedges: Foreign exchange contracts Other, net expenses $ 5 $ ― Other, net expenses $ ― $ 1 Six Months Ended June 30: (Millions) Gains (losses) recognized in income Amount reclassified from AOCI into income Net hedge ineffectiveness Description Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 Net investment hedges: Foreign exchange contracts Other, net expenses $ 5 $ ― Other, net expenses $ ― $ 1 Derivatives Not Designated as Hedges The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. The changes in the fair value of the derivatives and the related underlying foreign currency exposures result ed in net gains of $ 6 million and $ 8 million for the three months ended June 30 , 2016 and 2015 , respectively, and a net loss of $ 8 million and a net gain of $ 105 mi llion for the six months ended June 30 , 2016 and 2015 , respectively, and are recognized in Other expenses. Related to its derivatives not designated as hedges, the Company previously disclosed in Note 9 to the Consolid ated Financial Statements in its Quar terly Report on Form 10-Q for the period ended June 30, 2015, a gain of $40 million for the three months ended June 30, 2015, and a loss of $4 million for the six months ended June 30, 2015. These amounts should have been disclosed as gains of $87 million and $381 million, respectively, which are the amou nts used to calculate the above- referenced net gains of $8 million and $105 million. These changes to the previously disclosed amounts have no impact on the Consolidated Statements of Income, Balance Sheets or Cash Flows. The changes in the fair value of an embedded derivative are nil and a gain of $ 4 million for the three months ended June 30 , 2016 and 2015 , respectively, and gains of $ 6 million and $ 3 million for the six months ended June 30 , 2016 and 2015 , respectively, and are recognized in Card Member services and other expense. |
Fair Values
Fair Values | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value (Disclosures) [Abstract] | |
Fair Values | 10 . Fair Values Financial Assets and Financial Liabilities Carried at Fair Value The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy, as of June 30 , 2016 and December 31 , 2015 : 2016 2015 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 1 $ 1 $ ― $ ― $ 1 $ 1 $ ― $ ― Debt securities and other 3,891 368 3,523 ― 3,758 409 3,349 ― Derivatives (a) 1,143 ― 1,143 ― 544 ― 544 ― Total assets 5,035 369 4,666 ― 4,303 410 3,893 ― Liabilities: Derivatives (a) 389 ― 389 ― 201 ― 201 ― Total liabilities $ 389 $ ― $ 389 $ ― $ 201 $ ― $ 201 $ ― Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of derivative assets and liabilities, on a further disaggregated basis . The following table summarizes the estimated fai r values of the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis , as of June 30 , 2016 and December 31, 2015 . The fair values of these financial instruments are estimates based upon the m arket conditions and perceived risks as of June 30 , 2016 and December 31, 2015 , and require management judgment. These fi gures may not be indicative of future fair values, nor can the fair value of the Company be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2016 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents $ 34 $ 34 $ 33 $ 1 (a) $ ― Other financial assets (b) 48 48 ― 48 ― Financial assets carried at other than fair value Loans, net 60 61 (c) ― ― 61 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 63 63 ― 63 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 14 14 ― 14 ― Long-term debt $ 51 $ 52 (c) $ ― $ 52 $ ― Carrying Corresponding Fair Value Amount 2015 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents $ 23 $ 23 $ 22 $ 1 (a) $ ― Other financial assets (b) 47 47 ― 47 ― Financial assets carried at other than fair value Card Member loans and receivables HFS (e) 15 15 ― ― 15 Loans, net 59 60 (c) ― ― 60 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 67 67 ― 67 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 14 14 ― 14 ― Long-term debt $ 48 $ 49 (c) $ ― $ 49 $ ― Reflects time deposits and short-term investments. Includes Card Member receivables (including fair values of Card Member receivables of $ 5.8 billion and $ 6.7 billion held by a consolidated VIE as of June 30 , 2016 and December 31, 2015 , respectively), Other receivables, restricted cash and other miscellaneous assets. Includes the fair values of Card Member loans of $ 25.3 billion and $ 23.5 billion and long-term debt of $ 14.7 billion and $ 13.6 billion held by a consolidated VIE as of June 30 , 2016 and December 31, 2015 , respectively. Presented as a component of customer deposits on the Consolidated Balance Sheets. Does not include any fair value associated with the Card Member account relationships. Refer to Note 2 for additional information. Nonrecurring Fair Value Measurements The Company has certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to th eir initial recognition is applicable if determined to be impaired. During the six months ended June 30 , 2016 , the Company did not have any material assets that were measured at fair value due to impairment . During the year ended December 31, 2015, the Comp any recorded a $384 million impairment charge, consisting of a $219 million write-down of the entire balance of goodwill in the Prepaid Services business and a $165 million write-down of technology an d other assets to fair value . |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Guarantees | 11 . Guarantees The Company provides Card Member protection plans that cover losses associated with purchased products, as well as certain other guarantees and indemnifications in the ordinary course of business . In relation to its maximum potential undiscounted future payments as shown in the table that follows, to date the Company has not experienced any significant losses related to guarantees or indemnifications . The Company’s initial recognition of these instruments i s at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated. The following table provides information related to such guarantees and indemnifications as of June 30 , 2016 and December 31, 2015 : Maximum potential undiscounted future payments (a) Related liability (b) (Billions) (Millions) Type of Guarantee 2016 2015 2016 2015 Return and Merchant Protection $ 44 $ 42 $ 41 $ 49 Other (c) 6 6 44 37 Total $ 50 $ 48 $ 85 $ 86 Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed or indemnified parties. The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of maximum exposure , which is based on all eligible claims in relation to annual billed business volumes. Included in O ther liabilities on the Consolidated Balance Sheets. Primarily includes guarantees related to the Comp any’s purchase protection, real estate and business dispositions . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Changes In Accumulated Other Comprehensive (Loss) Income | 12 . Changes In Accumulated Other Comprehensive Loss AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three and six months ended June 30 , 2016 and 2015 were as follows: Three Months Ended June 30, 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of March 31, 2016 $ 60 $ (2,040) $ (522) $ (2,502) Net unrealized gains 5 ― ― 5 Increase (decrease) due to amounts reclassified into earnings ― ― ― ― Net translation loss of investments in foreign operations ― (265) ― (265) Net gains related to hedges of investments in foreign operations ― 135 ― 135 Pension and other postretirement benefit gains ― ― 6 6 Net change in accumulated other comprehensive loss 5 (130) 6 (119) Balances as of June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) Six Months Ended June 30, 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2015 $ 58 $ (2,044) $ (548) $ (2,534) Net unrealized gains 9 ― ― 9 Decrease due to amounts reclassified into earnings (2) ― ― (2) Net translation loss of investments in foreign operations ― (169) ― (169) Net gains related to hedges of investments in foreign operations ― 43 ― 43 Pension and other postretirement benefit gains ― ― 32 32 Net change in accumulated other comprehensive loss 7 (126) 32 (87) Balances as of June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) Three Months Ended June 30, 2015 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of March 31, 2015 $ 96 $ (1,754) $ (493) $ (2,151) Net unrealized loss (20) ― ― (20) Decrease due to amounts reclassified into earnings ― (1) ― (1) Net translation gain of investments in foreign operations ― 45 ― 45 Net losses related to hedges of investments in foreign operations ― (33) ― (33) Pension and other postretirement benefit gains ― ― 6 6 Net change in accumulated other comprehensive loss (20) 11 6 (3) Balances as of June 30, 2015 $ 76 $ (1,743) $ (487) $ (2,154) Six Months Ended June 30, 2015 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2014 $ 96 $ (1,499) $ (516) $ (1,919) Net unrealized loss (20) ― ― (20) Decrease due to amounts reclassified into earnings ― (1) ― (1) Net translation loss of investments in foreign operations ― (405) ― (405) Net gains related to hedges of investments in foreign operations ― 162 ― 162 Pension and other postretirement benefit gains ― ― 29 29 Net change in accumulated other comprehensive loss (20) (244) 29 (235) Balances as of June 30, 2015 $ 76 $ (1,743) $ (487) $ (2,154) The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income : Gains (losses) recognized in earnings Three Months Ended Six Months Ended June 30, June 30, Income Statement Amount Amount Description ( Millions ) Line Item 2016 2015 2016 2015 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ ― $ ― $ 4 $ ― Related income tax expense Income tax provision ― ― (2) ― Reclassification to net income related to ― 2 available-for-sale securities ― ― ― ― Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related hedges Other expenses ― 1 ― 1 Related income tax benefit Income tax provision ― ― ― ― Reclassification of foreign currency translation adjustments ― 1 ― 1 Total $ ― $ 1 $ 2 $ 1 |
Non-Interest Revenue and Expens
Non-Interest Revenue and Expense Detail | 6 Months Ended |
Jun. 30, 2016 | |
Other Income And Other Expense Disclosure [Abstract] | |
Non-Interest Revenue and Expense Detail | 13 . Non-Interest Revenue and Expense Detail The following is a deta il of Other fees and commissions: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2016 2015 2016 2015 Foreign currency conversion fee revenue $ 207 $ 222 $ 403 $ 433 Delinquency fees 192 194 392 389 Loyalty coalition-related fees 104 88 198 179 Travel commissions and fees 87 95 167 184 Service fees 79 95 157 182 Other (a) 33 33 65 68 Total Other fees and commissions $ 702 $ 727 $ 1,382 $ 1,435 Other primarily includes revenues from fees related to Membership Rewards programs. The following is a detail of O ther revenues : Three Months Ended Six Months Ended June 30, June 30, (Millions) 2016 2015 2016 2015 Global Network Services partner revenues $ 197 $ 155 $ 342 $ 318 Gross realized gains on sale of investment securities ― ― 4 ― Other (a) 348 366 685 671 Total Other revenues $ 545 $ 521 $ 1,031 $ 989 Other includes revenues arising from net revenue earned on cross-border Card Member spending, merchant-related fees, insurance premiums earned from Card Member travel and other insurance programs, Travelers Cheques -related revenues, revenues related to the GBT JV transition services agreement, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees. The following is a detail of Other expenses: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2016 2015 2016 2015 Professional services $ 628 $ 655 $ 1,232 $ 1,279 Occupancy and equipment 438 415 903 849 Communications 80 85 163 173 Card and merchant-related fraud losses 57 83 115 183 Gain on sale of HFS portfolios (a) (1,091) ― (1,218) ― Other (b) 358 297 695 450 Total Other expenses $ 470 $ 1,535 $ 1,890 $ 2,934 Refer to Note 2 for additional information. Other expense inclu des general operating expenses, gains and losses on sale of assets or businesses not classified as discontinued operations, litigation, certain internal and regulatory review-related reimbursements and insurance costs or settlements, certain loyalty coalition-related expenses , the valuation allowance adjustment associated with loans and receivables HFS (refer to Note 2), and foreign currency-relat ed gains and losses (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in prior year). |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14 . Income Taxes The effective tax rate was 33.2 percent and 33.9 percent for the three months ended June 30 , 2016 and 2015 , respectively, and 33.8 percent and 34.0 percent for the six months ended June 30 , 2016 and 2015 , respectively. The tax rates in all periods primarily reflected the level of pretax income in relation to recurring permanent tax benefits and the geographic mix of business. The Company is under continuous examination by the In ternal Revenue Service (IRS) and tax authorities in other countries and states in which the Company has significant business operations. The tax years under examination and open for examination vary by jurisdiction. The IRS has completed its field examinat ion of the Company’s federal tax returns for years through 2007 ; however, refund claims for certain years continue to be reviewed by the IRS. In addition, the Company is currently under examination by the IRS for the years 2008 through 2014 . The C ompany believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $ 237 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 $ 237 million of unrecognized tax ben efits, approximately $ 21 million relates to amounts that if recognized would be recorded in shareholders’ equity and would not impact the Company’s results of operations or its effective tax rate. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | 15 . Earnings Per Common Share (EPS) The computations of basic and diluted EPS were as follows : Three Months Ended Six Months Ended June 30, June 30, (Millions, except per share amounts) 2016 2015 2016 2015 Numerator: Basic and diluted: Net income $ 2,015 $ 1,473 $ 3,441 $ 2,998 Preferred dividends (19) (20) (40) (20) Net income available to common shareholders 1,996 1,453 3,401 2,978 Earnings allocated to participating share awards (a) (17) (11) (28) (22) Net income attributable to common shareholders $ 1,979 $ 1,442 $ 3,373 $ 2,956 Denominator: (a) Basic: Weighted-average common stock 938 1,009 949 1,013 Add: Weighted-average stock options (b) 3 4 3 5 Diluted 941 1,013 952 1,018 Basic EPS $ 2.11 $ 1.43 $ 3.55 $ 2.92 Diluted EPS $ 2.10 $ 1.42 $ 3.54 $ 2.90 The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributa ble to participating securities. The related participating securities are similarly excluded from the denominator . The dilutive effect of unex ercised stock options excludes from the computation of EPS 2.5 million and 0.6 million of options for the three months ended June 30 , 2016 and 2015 , respectively, and 1.7 million and 0.5 million of options for the six months ended June 30 , 2016 and 2015 , respectively, because inclusion of the options would have been anti-dilutive. For the three and six months ended June 30 , 2016 and 2015 , the Company met specified performance measures related to the $ 750 million of Subordinated Debentures issued in 2006, and maturing in 2036. If the performance measures were not achieved in any given quarter, the Company would be required to issue common shares and apply the proceeds to make interest payments. |
Reportable Operating Segment
Reportable Operating Segment | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | 16 . Reportable Operating Segments The Company is a global services company that is principally engaged in businesses comprising four reportable operating segments: USCS, IC N S, GC S and GMS . Corporate functions and certain other businesses and operations are included in Corporate & Other. The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other : Three Months Ended June 30, 2016 (Millions, except where indicated) Corporate & Other (a) USCS ICNS GCS GMS Consolidated Non-interest revenues $ 2,069 $ 1,242 $ 2,280 $ 1,087 $ 108 $ 6,786 Interest income 1,278 234 310 1 62 1,885 Interest expense 139 58 104 (61) 196 436 Total revenues net of interest expense 3,208 1,418 2,486 1,149 (26) 8,235 Net income (loss) 1,067 228 576 373 (229) 2,015 Total assets (billions) 81 35 46 24 (26) 160 Total equity (billions) $ 7 $ 3 $ 8 $ 2 $ 1 $ 21 Six Months Ended June 30, 2016 (Millions, except where indicated) Corporate & Other (a) USCS ICNS GCS GMS Consolidated Non-interest revenues $ 4,098 $ 2,382 $ 4,470 $ 2,128 $ 216 $ 13,294 Interest income 2,669 461 631 1 128 3,890 Interest expense 279 112 199 (120) 391 861 Total revenues net of interest expense 6,488 2,731 4,902 2,249 (47) 16,323 Net income (loss) 1,761 416 1,061 730 (527) 3,441 Total assets (billions) 81 35 46 24 (26) 160 Total equity (billions) $ 7 $ 3 $ 8 $ 2 $ 1 $ 21 Three Months Ended June 30, 2015 (Millions, except where indicated) Corporate & Other (a) USCS ICNS GCS GMS Consolidated Non-interest revenues $ 2,176 $ 1,163 $ 2,285 $ 1,130 $ 107 $ 6,861 Interest income 1,252 237 289 1 58 1,837 Interest expense 121 58 91 (49) 193 414 Total revenues net of interest expense 3,307 1,342 2,483 1,180 (28) 8,284 Net income (loss) 613 193 550 369 (252) 1,473 Total assets (billions) 84 29 46 17 (19) 157 Total equity (billions) $ 8 $ 3 $ 7 $ 2 $ 2 $ 22 Six Months Ended June 30, 2015 (Millions, except where indicated) Corporate & Other (a) USCS ICNS GCS GMS Consolidated Non-interest revenues $ 4,207 $ 2,308 $ 4,460 $ 2,200 $ 189 $ 13,364 Interest income 2,525 482 567 1 119 3,694 Interest expense 235 121 180 (108) 396 824 Total revenues net of interest expense 6,497 2,669 4,847 2,309 (88) 16,234 Net income (loss) 1,272 390 1,067 738 (469) 2,998 Total assets (billions) 84 29 46 17 (19) 157 Total equity (billions) $ 8 $ 3 $ 7 $ 2 $ 2 $ 22 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policy (Text Block) [Abstract] | |
Investments | Investment securities principally include debt securities the Company classifies as available-for- sale and carries at fair value on the Consolidated Balance Sheets , with unrealized gains (losses) recorded in Accumulated Other Comprehensive Loss (AOCI) , net of income taxes . Realized gains and losses are recognized on a trade-date basis i n the Consolidated Statements of Income upon disposition of the securities using the specific identification method. |
Contingencies | The Company has recorded reserves for certain of its outstanding legal proceedings. A reserve is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated r ange of possible losses, as applicable . |
Guarantees | The Company’s initial recognition of these instruments i s at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated. |
Loans and Accounts Receivable (
Loans and Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Accounts Receivable (Tables) [Abstract] | |
Card Member receivables segment detail | Card Member a ccounts receivable by segment and Other receivables as of June 30 , 2016 and December 31, 2015 consisted of : (Millions) 2016 2015 U.S. Consumer Services (a) $ 10,587 $ 11,807 International Consumer and Network Services 5,582 5,599 Global Commercial Services 29,054 26,727 Card Member receivables (b) 45,223 44,133 Less: Reserve for losses 423 462 Card Member receivables, net $ 44,800 $ 43,671 Other receivables, net (c) $ 2,697 $ 3,024 Includes $ 5.8 b illion and $ 6.6 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of June 30 , 2016 and December 31, 2015 , respectively. Includes approximately $ 12.7 billion and $ 11.9 billion of Card Member receivables outside the United States as of June 30 , 2016 and December 31, 2015 , respectively . Other receivables primarily represent amounts related to ( i ) GNS partner banks for items such as royalty and franchise fees , (ii) certain merchants for billed discount revenue, and ( iii) l oyalty coalition partners for points issued , as well as program p articipation and servicing fees . Other receivables are presented net of r eserves for losses of $ 50 million and $ 43 million as of June 30 , 2016 and December 31, 2015 , respectively. |
Card Member loans segment detail | Card Member l oans by segment and Other loans as of June 30 , 2016 and December 31, 2015 consisted of: (Millions) 2016 2015 U.S. Consumer Services (a) $ 44,594 $ 43,495 International Consumer and Network Services 6,600 7,072 Global Commercial Services 8,693 8,006 Card Member loans 59,887 58,573 Less: Reserve for losses 1,091 1,028 Card Member loans, net $ 58,796 $ 57,545 Other loans, net (b) $ 1,132 $ 1,254 Includes approximately $ 25.3 billion and $ 23.6 billion of gross Card Member loans available to settle obligations o f a consolidated variable interest entity (VIE) as of June 30 , 2016 and December 31, 2015 , respectively. Other loans primarily represent loans to merchants . Other loans are presented net of reserves for losses of $ 36 million and $ 20 million as of June 30 , 2016 and December 31, 2015 , respectively. |
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of June 30 , 2016 and December 31, 2015 : 30-59 60-89 90+ Days Days Days Past Past Past 2016 (Millions) Current Due Due Due Total Card Member Loans: U.S. Consumer Services $ 44,120 $ 128 $ 100 $ 246 $ 44,594 International Consumer and Network Services 6,491 33 23 53 6,600 Global Commercial Services Global Small Business Services 8,547 27 20 50 8,644 Global Corporate Payments (a) (b) (b) (b) 1 49 Card Member Receivables: U.S. Consumer Services $ 10,464 $ 44 $ 24 $ 55 $ 10,587 International Consumer and Network Services 5,503 24 15 40 5,582 Global Commercial Services Global Small Business Services 13,516 64 39 87 13,706 Global Corporate Payments (a) (b) (b) (b) 111 15,348 30-59 60-89 90+ Days Days Days Past Past Past 2015 (Millions) Current Due Due Due Total Card Member Loans: U.S. Consumer Services $ 43,063 $ 128 $ 94 $ 210 $ 43,495 International Consumer and Network Services 6,961 34 25 52 7,072 Global Commercial Services Global Small Business Services 7,867 26 18 40 7,951 Global Corporate Payments (a) (b) (b) (b) 1 55 Card Member Receivables: U.S. Consumer Services $ 11,646 $ 54 $ 32 $ 75 $ 11,807 International Consumer and Network Services 5,515 24 18 42 5,599 Global Commercial Services Global Small Business Services 12,734 69 45 102 12,950 Global Corporate Payments (a) (b) (b) (b) 124 13,777 For GCP Card Member receivables in GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 9 0 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. Delinquency data for periods other than 90 days past billing is not ava ilable due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. |
Credit quality indicators for loans and receivables | The following table s prese nt the key credit quality indicators as of or for the six months ended June 30 : 2016 2015 Net Write-Off Rate Net Write-Off Rate 30+ Days 30+ Days Principal, Past Due Principal, Past Due Principal Interest, & as a % of Principal Interest, & as a % of Only (a) Fees (a) Total Only (a) Fees (a) Total Card Member Loans: U.S. Consumer Services 1.5 % 1.7 % 1.1 % 1.4 % 1.7 % 0.9 % International Consumer and Network Services 2.0 % 2.4 % 1.7 % 2.0 % 2.5 % 1.6 % Global Small Business Services 1.3 % 1.6 % 1.1 % 1.3 % 1.5 % 0.9 % Card Member Receivables: U.S. Consumer Services 1.5 % 1.8 % 1.2 % 1.7 % 1.9 % 1.4 % International Consumer and Network Services 2.2 % 2.4 % 1.4 % 2.0 % 2.2 % 1.5 % Global Small Business Services 1.7 % 2.0 % 1.4 % 2.0 % 2.3 % 1.6 % 2016 2015 Net Loss Net Loss Ratio as 90+ Days Ratio as 90+ Days a % of Past Billing a % of Past Billing Charge as a % of Charge as a % of Volume Receivables Volume Receivables Card Member Receivables: Global Corporate Payments 0.09 % 0.7 % 0.10 % 0.7 % The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. |
Impaired Card Member loans and receivables | The following tables provide additional information with respect to the Company’s impaired Card Member loans and receivables. Impaired Card Member receivables are not significant for ICNS as of June 30 , 2016 and December 31, 2015 ; therefore, the segment’s receivables are not included in the following tables . As of June 30, 2016 Over 90 days Accounts Classified Past Due & as a TDR (c) Total Unpaid Accruing Non- Out of Impaired Principal Allowance 2016 (Millions) Interest (a) Accruals (b) In Program (d) Program (e) Balance Balance for TDRs Card Member Loans: U.S. Consumer Services $ 162 $ 141 $ 174 $ 116 $ 593 $ 545 $ 52 International Consumer and Network Services 53 ― ― ― 53 53 ― Global Commercial Services 29 32 28 24 113 104 10 Card Member Receivables: U.S. Consumer Services ― ― 8 4 12 11 5 Global Commercial Services ― ― 18 7 25 25 14 Total $ 244 $ 173 $ 228 $ 151 $ 796 $ 738 $ 81 As of December 31, 2015 Over 90 days Accounts Classified Past Due & as a TDR (c) Total Unpaid Accruing Non- Out of Impaired Principal Allowance 2015 (Millions) Interest (a) Accruals (b) In Program (d) Program (e) Balance Balance for TDRs Card Member Loans: U.S. Consumer Services $ 140 $ 124 $ 149 $ 89 $ 502 $ 463 $ 44 International Consumer and Network Services 52 ― ― ― 52 51 ― Global Commercial Services 24 26 23 18 91 85 9 Card Member Receivables: U.S. Consumer Services ― ― 11 3 14 14 8 Global Commercial Services ― ― 16 3 19 19 12 Total $ 216 $ 150 $ 199 $ 113 $ 678 $ 632 $ 73 The Company’s policy is generally to accrue inte rest through the date of write -off ( typically 18 0 days past due). The Company establishes reserves for interest that it believes will not be collected. Amounts presented exclude loans classified as a TDR. Non-accrual loans not in modification programs primarily include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest. Accounts classified as a TDR include $ 19 million and $ 20 million that are over 90 days past due and accruing interest and $ 16 million and $ 18 milli on that are non-accruals as of June 30 , 2016 and December 31, 2015 , respectively . In Program TDRs include Card Member accounts that are currently enrolled in a modification program. Out of Program TDRs include $114 million and $84 million of Card Member accounts that have successfully completed a modification program and $ 37 million and $29 million of Card M ember accounts that were not in compliance with the terms of the modification programs as of June 30 , 2016 and December 31, 2015 , respectively . |
Interest income recognized and average balance of impaired Card Member loans and receivables | The following table provides information with respect to the Company’s average balances of, and inte rest income recognized from, impaired Card Member loans and the average balances of impaired Card Member receivables for the three and six months ended June 30 : Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Interest Interest Average Income Average Income (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Consumer Services $ 551 $ 12 $ 555 $ 24 International Consumer and Network Services 54 4 53 8 Global Commercial Services 102 3 103 6 Card Member Receivables: U.S. Consumer Services 13 ― 12 ― Global Commercial Services 25 ― 20 ― Total $ 745 $ 19 $ 743 $ 38 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Interest Interest Average Income Average Income (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Consumer Services $ 582 $ 11 $ 578 $ 22 International Consumer and Network Services 55 3 58 7 Global Commercial Services 109 3 106 5 Card Member Receivables: U.S. Consumer Services 10 ― 14 ― Global Commercial Services 17 ― 24 ― Total $ 773 $ 17 $ 780 $ 34 |
Troubled debt restructurings | The following table provides additional information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs for the three and six months ended June 30 , 2016 and 2015 . The ICNS Card Member loans and receivables modifications were not significant ; therefore, this segment is not included in the following TDR disclosures. Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Average Average Average Payment Average Payment Number of Outstanding Interest Rate Term Number of Outstanding Interest Rate Term Accounts Balances (a) Reduction Extension Accounts Balances (a) Reduction Extension (in thousands) ($ in millions) (% Points) (# of Months) (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 7 $ 50 10 (b) 15 $ 107 11 (b) Card Member Receivables 2 27 (c) 17 5 65 (c) 17 Total 9 $ 77 20 $ 172 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Average Average Average Payment Average Payment Number of Outstanding Interest Rate Term Number of Outstanding Interest Rate Term Accounts Balances (a) Reduction Extension Accounts Balances (a) Reduction Extension (in thousands) ($ in millions) (% Points) (# of Months) (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 10 $ 70 10 (b) 21 $ 150 11 (b) Card Member Receivables 3 34 (c) 12 6 74 (c) 12 Total 13 $ 104 27 $ 224 Represents the outstanding balance im mediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. M odifications did not reduce the principal balance . For Card Member loans, there have been no payment term extensions. The Company does not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. |
Troubled debt restructurings that subsequently defaulted | The follo wing table provides information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs that subsequently defaulted w ithin 12 months of modification during the three and six months ended June 30 , 2016 and 2015 . A Card Member is considered in default of a modification program after one and up to two consecutive missed payments, depending on the terms of the modification program . For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Aggregated Aggregated Outstanding Outstanding Number of Balances Number of Balances Accounts Upon Default (a) Accounts Upon Default (a) (in thousands) ($ in millions) (in thousands) ($ in millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 1 $ 9 2 $ 18 Card Member Receivables 1 1 2 2 Total 2 $ 10 4 $ 20 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Aggregated Aggregated Outstanding Outstanding Number of Balances Number of Balances Accounts Upon Default (a) Accounts Upon Default (a) (in thousands) ($ in millions) (in thousands) ($ in millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 3 $ 15 5 $ 25 Card Member Receivables 1 1 2 2 Total 4 $ 16 7 $ 27 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables. |
Reserves For Losses (Tables)
Reserves For Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Reserves For Losses Tables [Abstract] | |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the six months ended June 30: (Millions) 2016 2015 Balance, January 1 $ 462 $ 465 Provisions (a) 322 339 Net write-offs (b) (359) (370) Other (c) (2) (14) Balance, June 30 $ 423 $ 420 P rovisions for principal and fee reserve components. Consists of principal and fee components, less recoveries of $ 202 million and $ 201 million, including net write-offs from TDRs of $ 16 million and $ 42 million, for the six months ended June 30 , 2016 and 2015 , respectively. Includes foreign currency translation adjustments of $ (1) million and $ (7) million and other adjustments of $ (1) million and $ (7) million for the six months ended June 30 , 2016 and 2015 , respectively . |
Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and collectively for impair ment , and related reserves , as of June 30 , 2016 and December 31, 2015 : (Millions) 2016 2015 Card Member receivables evaluated individually for impairment (a) $ 37 $ 33 Related reserves (a) $ 19 $ 20 Card Member receivables evaluated collectively for impairment $ 45,186 $ 44,100 Related reserves (b) $ 404 $ 442 Represents receivables modified as a TDR and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the six months ended June 30 : (Millions) 2016 2015 Balance, January 1 $ 1,028 $ 1,201 Provisions (a) 512 520 Net write-offs Principal (b) (437) (502) Interest and fees (b) (80) (85) Other (c) 68 (2) Balance, June 30 $ 1,091 $ 1,132 Provisions for principal, interest and fee reserve components. Consists of principal write-offs, less recoveries of $ 179 million and $ 212 million , including net write-offs from TDRs of $ 17 million and $ 22 million , for the six months ended June 30 , 2016 and 2015 , respectively. Recoveries of interest and fees were de minimis . Includes foreign currency translation adjustments of $ (2) million and $ (8) million and other adjustment s of $ 3 million and $ 6 million for t he six months ended June 30 , 2016 and 2015 , respectively. T he six months ended June 30 , 2016 also includes reserves of $7 million in the first quarter and $60 million in the second quarter associated with $20 million and $245 million of retained Card Member loans, respectively, reclassified from HFS to held for investment during those periods as a result of the respective sales of the JetBlue Airways Corporation (JetBlue) and Costco Wholesale Corporation in the United States (Costco) cobrand card portfolios. |
Card Member loans and related reserves evaluated separately and collectively for impairment | The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of June 30 , 2016 and December 31, 2015 : (Millions) 2016 2015 Card Member loans evaluated individually for impairment (a) $ 342 $ 279 Related reserves (a) $ 62 $ 53 Card Member loans evaluated collectively for impairment (b) $ 59,545 $ 58,294 Related reserves (b) $ 1,029 $ 975 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans , and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investment Securities (Tables) [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summar y of investment securities as of June 30 , 2016 and December 31, 2015 : 2016 2015 Gross Gross Estimated Gross Gross Estimated Unrealized Unrealized Fair Unrealized Unrealized Fair Description of Securities (Millions) Cost Gains Losses Value Cost Gains Losses Value State and municipal obligations $ 2,530 $ 72 $ ― $ 2,602 $ 2,813 $ 85 $ (5) $ 2,893 U.S. Government agency obligations 2 ― ― 2 2 ― ― 2 U.S. Government treasury obligations 354 14 ― 368 406 4 (1) 409 Corporate debt securities 26 1 ― 27 29 1 ― 30 Mortgage-backed securities (a) 111 5 ― 116 117 4 ― 121 Equity securities 1 ― ― 1 1 ― ― 1 Foreign government bonds and obligations 718 9 ― 727 250 6 (1) 255 Other (b) 50 ― (1) 49 50 ― (2) 48 Total $ 3,792 $ 101 $ (1) $ 3,892 $ 3,668 $ 100 $ (9) $ 3,759 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Other comprises investments in various mutual funds. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table provides information about the Company’s investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of June 30 , 2016 and December 31, 2015 : 2016 2015 Less than 12 months 12 months or more Less than 12 months 12 months or more Gross Gross Gross Gross Description of Securities (Millions) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and municipal obligations $ ― $ ― $ ― ― $ 100 $ (3) $ 13 $ (2) U.S. Government treasury obligations ― ― ― ― 253 (1) ― ― Foreign government bonds and obligations ― ― ― ― 99 (1) ― ― Other ― ― 33 (1) ― ― 33 (2) Total $ ― $ ― $ 33 $ (1) $ 452 $ (5) $ 46 $ (4) |
Available for Sale Securities Ratio of Fair Value to Amortized Cost | The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of June 30, 2016 and December 31, 2015: Less than 12 months 12 months or more Total Ratio of Fair Value to Gross Gross Gross Amortized Cost Number of Estimated Unrealized Number of Estimated Unrealized Number of Estimated Unrealized (Dollars in millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2016: 90%–100% ― $ ― $ ― 24 $ 36 $ (1) 24 $ 36 $ (1) Less than 90% ― ― ― ― ― ― ― ― ― Total as of June 30, 2016 ― $ ― $ ― 24 $ 36 $ (1) 24 $ 36 $ (1) 2015: 90%–100% 52 $ 450 $ (5) 15 $ 37 $ (2) 67 $ 487 $ (7) Less than 90% ― ― ― 2 9 (2) 2 9 (2) Total as of December 31, 2015 52 $ 450 $ (5) 17 $ 46 $ (4) 69 $ 496 $ (9) |
Contractual maturities of investment securities | Contractual maturities of investment securities with stated maturities as of June 30, 2016 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 815 $ 817 Due after 1 year but within 5 years 172 177 Due after 5 years but within 10 years 413 435 Due after 10 years 2,341 2,413 Total (a) $ 3,741 $ 3,842 Balances primarily represent investments in state and municipal obligations, and foreign government bonds and obligations. |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Cash And Cash Equivalents [Abstract] | |
Restricted cash held by trusts | The following table provides information on the restricted cash held by the American Express Issuance Trust II (the Charge Trust) and the American Expres s Credit Account Master Trust (the Lending Trust, collectively the Trusts) as of June 30 , 2016 and December 31, 2015 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2016 2015 Charge Trust $ 2 $ 2 Lending Trust 33 153 Total $ 35 $ 155 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Customer Deposits (Tables) [Abstract] | |
Deposits By Component Alternative | 7 . Customer Deposits As of June 30 , 2016 and December 31, 2015 , customer deposits we re categorized as interest bearing or non-interest bearing , as follows: (Millions) 2016 2015 U.S.: Interest bearing $ 53,666 $ 54,102 Non-interest bearing (includes Card Member credit balances of: 2016, $311 million; 2015, $389 million) 343 478 Non-U.S.: Interest bearing 89 82 Non-interest bearing (includes Card Member credit balances of: 2016, $293 million; 2015, $323 million) 306 335 Total customer deposits $ 54,404 $ 54,997 |
Deposits By Type | C ustomer deposits by deposit type as of June 30 , 2016 and December 31, 2015 were as follows: (Millions) 2016 2015 U.S. retail deposits: Savings accounts – Direct $ 30,221 $ 29,023 Certificates of deposit: Direct 287 281 Third-party (brokered) 13,460 13,856 Sweep accounts – Third-party (brokered) 9,698 10,942 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 134 183 Card Member credit balances ― U.S. and non-U.S. 604 712 Total customer deposits $ 54,404 $ 54,997 |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of June 30 , 2016 were as follows: (Millions) U.S. Non-U.S. Total 2016 $ 2,030 $ 5 $ 2,035 2017 3,657 5 3,662 2018 3,197 ― 3,197 2019 2,332 ― 2,332 2020 2,517 ― 2,517 After 5 years 14 ― 14 Total $ 13,747 $ 10 $ 13,757 |
Time Deposits $250,000 Or More | As of June 30 , 2016 and December 31, 2015 , certificates of deposit in denominations of $25 0,000 or more , in the aggregate, were as follows: (Millions) 2016 2015 U.S. $ 113 $ 105 Non-U.S. 3 1 Total $ 116 $ 106 |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivatives and Hedging Activities (Tables) [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following t able summarizes the total fair value, excluding interest acc ruals, of derivative assets and l iabilities as of June 30 , 2016 and December 31, 2015 : Other Assets Other Liabilities Fair Value Fair Value (Millions) 2016 2015 2016 2015 Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges $ 452 $ 236 $ ― $ 9 Foreign exchange contracts Net investment hedges 216 191 141 57 Total derivatives designated as hedging instruments 668 427 141 66 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (a) 475 117 248 135 Total derivatives, gross 1,143 544 389 201 Less: Cash collateral netting (b) (361) (155) ― ― Derivative asset and derivative liability netting (c) (169) (107) (169) (107) Total derivatives, net (d) $ 613 $ 282 $ 220 $ 94 Includes foreign currency derivatives embedded in certain operating agreements. Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. The Company received non-cash collateral from a counterparty in the form of security interests in U.S. Treasury securities with a fair value of $30 million as of June 30, 2016 , none of which was sold or repledged . Such non-cash collateral economically reduced the Company’s risk exposure to $583 million but did not reduce the net exposure on the Company’ s Consolidated Balance Sheets. The C ompany did not have any such non-cash collateral as of December 31, 2015 . Additionally, the Company posted $ 159 million and $ 149 million as of June 30 , 2016 and December 31, 2015 , respectively , as initial margin on its centrally c leared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances. Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative a ssets and derivative liabilities are presented within O ther assets and O ther liabilities on the Consolidated Balance Sheets. |
Effect of fair value hedges on results of operations | The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s fair value hedges for the three and six months ended June 30 : Three Months Ended June 30 (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative relationship Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 2016 2015 Interest rate contracts Other expenses $ 61 $ (89) Other expenses $ (53) $ 85 $ 8 $ (4) Six Months Ended June 30 (Millions) Gains (losses) recognized in income Derivative contract Hedged item Net hedge Amount Amount ineffectiveness Derivative relationship Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 2016 2015 Interest rate contracts Other expenses $ 226 $ (26) Other expenses $ (224) $ 29 $ 2 $ 3 |
Impact of cash flow hedges and investment hedges on results of operations | The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s net investment hedges for the three and six months ended June 30: Three Months Ended June 30: (Millions) Gains (losses) recognized in income Amount reclassified from AOCI into income Net hedge ineffectiveness Description Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 Net investment hedges: Foreign exchange contracts Other, net expenses $ 5 $ ― Other, net expenses $ ― $ 1 Six Months Ended June 30: (Millions) Gains (losses) recognized in income Amount reclassified from AOCI into income Net hedge ineffectiveness Description Income Statement Line Item 2016 2015 Income Statement Line Item 2016 2015 Net investment hedges: Foreign exchange contracts Other, net expenses $ 5 $ ― Other, net expenses $ ― $ 1 |
Fair Values (Tables)
Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Values (Tables) [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy, as of June 30 , 2016 and December 31 , 2015 : 2016 2015 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 1 $ 1 $ ― $ ― $ 1 $ 1 $ ― $ ― Debt securities and other 3,891 368 3,523 ― 3,758 409 3,349 ― Derivatives (a) 1,143 ― 1,143 ― 544 ― 544 ― Total assets 5,035 369 4,666 ― 4,303 410 3,893 ― Liabilities: Derivatives (a) 389 ― 389 ― 201 ― 201 ― Total liabilities $ 389 $ ― $ 389 $ ― $ 201 $ ― $ 201 $ ― Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of derivative assets and liabilities, on a further disaggregated basis . |
Estimated fair value of financial assets and financial liabilities | The following table summarizes the estimated fai r values of the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis , as of June 30 , 2016 and December 31, 2015 . The fair values of these financial instruments are estimates based upon the m arket conditions and perceived risks as of June 30 , 2016 and December 31, 2015 , and require management judgment. These fi gures may not be indicative of future fair values, nor can the fair value of the Company be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2016 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents $ 34 $ 34 $ 33 $ 1 (a) $ ― Other financial assets (b) 48 48 ― 48 ― Financial assets carried at other than fair value Loans, net 60 61 (c) ― ― 61 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 63 63 ― 63 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 14 14 ― 14 ― Long-term debt $ 51 $ 52 (c) $ ― $ 52 $ ― Carrying Corresponding Fair Value Amount 2015 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents $ 23 $ 23 $ 22 $ 1 (a) $ ― Other financial assets (b) 47 47 ― 47 ― Financial assets carried at other than fair value Card Member loans and receivables HFS (e) 15 15 ― ― 15 Loans, net 59 60 (c) ― ― 60 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 67 67 ― 67 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 14 14 ― 14 ― Long-term debt $ 48 $ 49 (c) $ ― $ 49 $ ― Reflects time deposits and short-term investments. Includes Card Member receivables (including fair values of Card Member receivables of $ 5.8 billion and $ 6.7 billion held by a consolidated VIE as of June 30 , 2016 and December 31, 2015 , respectively), Other receivables, restricted cash and other miscellaneous assets. Includes the fair values of Card Member loans of $ 25.3 billion and $ 23.5 billion and long-term debt of $ 14.7 billion and $ 13.6 billion held by a consolidated VIE as of June 30 , 2016 and December 31, 2015 , respectively. Presented as a component of customer deposits on the Consolidated Balance Sheets. Does not include any fair value associated with the Card Member account relationships. Refer to Note 2 for additional information. |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees (Tables) [Abstract] | |
Information related to guarantees | The following table provides information related to such guarantees and indemnifications as of June 30 , 2016 and December 31, 2015 : Maximum potential undiscounted future payments (a) Related liability (b) (Billions) (Millions) Type of Guarantee 2016 2015 2016 2015 Return and Merchant Protection $ 44 $ 42 $ 41 $ 49 Other (c) 6 6 44 37 Total $ 50 $ 48 $ 85 $ 86 Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed or indemnified parties. The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of maximum exposure , which is based on all eligible claims in relation to annual billed business volumes. Included in O ther liabilities on the Consolidated Balance Sheets. Primarily includes guarantees related to the Comp any’s purchase protection, real estate and business dispositions . |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Comprehensive Income, net of tax [Abstract] | |
Components of comprehensive income (loss), net of tax | AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three and six months ended June 30 , 2016 and 2015 were as follows: Three Months Ended June 30, 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of March 31, 2016 $ 60 $ (2,040) $ (522) $ (2,502) Net unrealized gains 5 ― ― 5 Increase (decrease) due to amounts reclassified into earnings ― ― ― ― Net translation loss of investments in foreign operations ― (265) ― (265) Net gains related to hedges of investments in foreign operations ― 135 ― 135 Pension and other postretirement benefit gains ― ― 6 6 Net change in accumulated other comprehensive loss 5 (130) 6 (119) Balances as of June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) Six Months Ended June 30, 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2015 $ 58 $ (2,044) $ (548) $ (2,534) Net unrealized gains 9 ― ― 9 Decrease due to amounts reclassified into earnings (2) ― ― (2) Net translation loss of investments in foreign operations ― (169) ― (169) Net gains related to hedges of investments in foreign operations ― 43 ― 43 Pension and other postretirement benefit gains ― ― 32 32 Net change in accumulated other comprehensive loss 7 (126) 32 (87) Balances as of June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) Three Months Ended June 30, 2015 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of March 31, 2015 $ 96 $ (1,754) $ (493) $ (2,151) Net unrealized loss (20) ― ― (20) Decrease due to amounts reclassified into earnings ― (1) ― (1) Net translation gain of investments in foreign operations ― 45 ― 45 Net losses related to hedges of investments in foreign operations ― (33) ― (33) Pension and other postretirement benefit gains ― ― 6 6 Net change in accumulated other comprehensive loss (20) 11 6 (3) Balances as of June 30, 2015 $ 76 $ (1,743) $ (487) $ (2,154) Six Months Ended June 30, 2015 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2014 $ 96 $ (1,499) $ (516) $ (1,919) Net unrealized loss (20) ― ― (20) Decrease due to amounts reclassified into earnings ― (1) ― (1) Net translation loss of investments in foreign operations ― (405) ― (405) Net gains related to hedges of investments in foreign operations ― 162 ― 162 Pension and other postretirement benefit gains ― ― 29 29 Net change in accumulated other comprehensive loss (20) (244) 29 (235) Balances as of June 30, 2015 $ 76 $ (1,743) $ (487) $ (2,154) |
Reclassification out of accumulated other comprehensive (loss) income | The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income : Gains (losses) recognized in earnings Three Months Ended Six Months Ended June 30, June 30, Income Statement Amount Amount Description ( Millions ) Line Item 2016 2015 2016 2015 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ ― $ ― $ 4 $ ― Related income tax expense Income tax provision ― ― (2) ― Reclassification to net income related to ― 2 available-for-sale securities ― ― ― ― Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related hedges Other expenses ― 1 ― 1 Related income tax benefit Income tax provision ― ― ― ― Reclassification of foreign currency translation adjustments ― 1 ― 1 Total $ ― $ 1 $ 2 $ 1 |
Non-Interest Revenue and Expe36
Non-Interest Revenue and Expense Detail (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Cost And Expense Disclosure Operating (Tables) [Abstract] | |
Details of other commissions and fees | The following is a deta il of Other fees and commissions: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2016 2015 2016 2015 Foreign currency conversion fee revenue $ 207 $ 222 $ 403 $ 433 Delinquency fees 192 194 392 389 Loyalty coalition-related fees 104 88 198 179 Travel commissions and fees 87 95 167 184 Service fees 79 95 157 182 Other (a) 33 33 65 68 Total Other fees and commissions $ 702 $ 727 $ 1,382 $ 1,435 Other primarily includes revenues from fees related to Membership Rewards programs. |
Details of other revenues | The following is a detail of O ther revenues : Three Months Ended Six Months Ended June 30, June 30, (Millions) 2016 2015 2016 2015 Global Network Services partner revenues $ 197 $ 155 $ 342 $ 318 Gross realized gains on sale of investment securities ― ― 4 ― Other (a) 348 366 685 671 Total Other revenues $ 545 $ 521 $ 1,031 $ 989 Other includes revenues arising from net revenue earned on cross-border Card Member spending, merchant-related fees, insurance premiums earned from Card Member travel and other insurance programs, Travelers Cheques -related revenues, revenues related to the GBT JV transition services agreement, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees. |
Detail of other, net expense | The following is a detail of Other expenses: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2016 2015 2016 2015 Professional services $ 628 $ 655 $ 1,232 $ 1,279 Occupancy and equipment 438 415 903 849 Communications 80 85 163 173 Card and merchant-related fraud losses 57 83 115 183 Gain on sale of HFS portfolios (a) (1,091) ― (1,218) ― Other (b) 358 297 695 450 Total Other expenses $ 470 $ 1,535 $ 1,890 $ 2,934 Refer to Note 2 for additional information. Other expense inclu des general operating expenses, gains and losses on sale of assets or businesses not classified as discontinued operations, litigation, certain internal and regulatory review-related reimbursements and insurance costs or settlements, certain loyalty coalition-related expenses , the valuation allowance adjustment associated with loans and receivables HFS (refer to Note 2), and foreign currency-relat ed gains and losses (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in prior year). |
Earnings Per Common Share (EP37
Earnings Per Common Share (EPS) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS were as follows : Three Months Ended Six Months Ended June 30, June 30, (Millions, except per share amounts) 2016 2015 2016 2015 Numerator: Basic and diluted: Net income $ 2,015 $ 1,473 $ 3,441 $ 2,998 Preferred dividends (19) (20) (40) (20) Net income available to common shareholders 1,996 1,453 3,401 2,978 Earnings allocated to participating share awards (a) (17) (11) (28) (22) Net income attributable to common shareholders $ 1,979 $ 1,442 $ 3,373 $ 2,956 Denominator: (a) Basic: Weighted-average common stock 938 1,009 949 1,013 Add: Weighted-average stock options (b) 3 4 3 5 Diluted 941 1,013 952 1,018 Basic EPS $ 2.11 $ 1.43 $ 3.55 $ 2.92 Diluted EPS $ 2.10 $ 1.42 $ 3.54 $ 2.90 The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributa ble to participating securities. The related participating securities are similarly excluded from the denominator . The dilutive effect of unex ercised stock options excludes from the computation of EPS 2.5 million and 0.6 million of options for the three months ended June 30 , 2016 and 2015 , respectively, and 1.7 million and 0.5 million of options for the six months ended June 30 , 2016 and 2015 , respectively, because inclusion of the options would have been anti-dilutive. |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Operating segment information | The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other : Three Months Ended June 30, 2016 (Millions, except where indicated) Corporate & Other (a) USCS ICNS GCS GMS Consolidated Non-interest revenues $ 2,069 $ 1,242 $ 2,280 $ 1,087 $ 108 $ 6,786 Interest income 1,278 234 310 1 62 1,885 Interest expense 139 58 104 (61) 196 436 Total revenues net of interest expense 3,208 1,418 2,486 1,149 (26) 8,235 Net income (loss) 1,067 228 576 373 (229) 2,015 Total assets (billions) 81 35 46 24 (26) 160 Total equity (billions) $ 7 $ 3 $ 8 $ 2 $ 1 $ 21 Six Months Ended June 30, 2016 (Millions, except where indicated) Corporate & Other (a) USCS ICNS GCS GMS Consolidated Non-interest revenues $ 4,098 $ 2,382 $ 4,470 $ 2,128 $ 216 $ 13,294 Interest income 2,669 461 631 1 128 3,890 Interest expense 279 112 199 (120) 391 861 Total revenues net of interest expense 6,488 2,731 4,902 2,249 (47) 16,323 Net income (loss) 1,761 416 1,061 730 (527) 3,441 Total assets (billions) 81 35 46 24 (26) 160 Total equity (billions) $ 7 $ 3 $ 8 $ 2 $ 1 $ 21 Three Months Ended June 30, 2015 (Millions, except where indicated) Corporate & Other (a) USCS ICNS GCS GMS Consolidated Non-interest revenues $ 2,176 $ 1,163 $ 2,285 $ 1,130 $ 107 $ 6,861 Interest income 1,252 237 289 1 58 1,837 Interest expense 121 58 91 (49) 193 414 Total revenues net of interest expense 3,307 1,342 2,483 1,180 (28) 8,284 Net income (loss) 613 193 550 369 (252) 1,473 Total assets (billions) 84 29 46 17 (19) 157 Total equity (billions) $ 8 $ 3 $ 7 $ 2 $ 2 $ 22 Six Months Ended June 30, 2015 (Millions, except where indicated) Corporate & Other (a) USCS ICNS GCS GMS Consolidated Non-interest revenues $ 4,207 $ 2,308 $ 4,460 $ 2,200 $ 189 $ 13,364 Interest income 2,525 482 567 1 119 3,694 Interest expense 235 121 180 (108) 396 824 Total revenues net of interest expense 6,497 2,669 4,847 2,309 (88) 16,234 Net income (loss) 1,272 390 1,067 738 (469) 2,998 Total assets (billions) 84 29 46 17 (19) 157 Total equity (billions) $ 8 $ 3 $ 7 $ 2 $ 2 $ 22 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Business Events (Details Textua
Business Events (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Events (Details) [Abstract] | |||||
CardMember loans transferred from HFS to held for investment | $ 245 | ||||
CardMember receivables transferred from Held for Sales (HFS) to held for investment | 1 | ||||
Business Events (Line Items) | |||||
Gain on sale of held for sale (HFS) portfolio | 1,091 | $ 0 | $ 1,218 | $ 0 | |
Other Expense [Member] | |||||
Business Events (Line Items) | |||||
Gain on sale of held for sale (HFS) portfolio | $ 1,091 | $ 127 |
Loans and Accounts Receivable40
Loans and Accounts Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Loans segment information | ||||
Card Member loans, gross | $ 59,887 | $ 58,573 | ||
Less: Reserve for losses | 1,091 | 1,028 | $ 1,132 | $ 1,201 |
Card Member loans, net | 58,796 | 57,545 | ||
Other loans, net | 1,132 | 1,254 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 36 | 20 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 25,334 | 23,559 | ||
U S Consumer Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 44,594 | 43,495 | ||
U S Consumer Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Gross Card Member loans available to settle the obligations of a variable interest entity | 25,300 | 23,600 | ||
International Consumer and Network Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 6,600 | 7,072 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | $ 8,693 | $ 8,006 |
Loans and Accounts Receivable41
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts receivable segment information | ||||
Card Member receivables | $ 45,223 | $ 44,133 | ||
Less: Reserve for losses | 423 | 462 | $ 420 | $ 465 |
Card Member receivables, net | 44,800 | 43,671 | ||
Other receivables, net | 2,697 | 3,024 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 50 | 43 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 5,828 | 6,649 | ||
Non United States [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 12,700 | 11,900 | ||
U S Consumer Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 10,587 | 11,807 | ||
U S Consumer Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Gross Card Member receivables available to settle the obligations of a variable interest entity | 5,800 | 6,600 | ||
International Consumer and Network Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 5,582 | 5,599 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 29,054 | $ 26,727 |
Loans and Accounts Receivable42
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | $ 44,120 | $ 43,063 |
Total aging | 44,594 | 43,495 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 128 | 128 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 100 | 94 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 246 | 210 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 10,464 | 11,646 |
Total aging | 10,587 | 11,807 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 44 | 54 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 24 | 32 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 55 | 75 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 6,491 | 6,961 |
Total aging | 6,600 | 7,072 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 33 | 34 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 23 | 25 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 53 | 52 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 5,503 | 5,515 |
Total aging | 5,582 | 5,599 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 24 | 24 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 15 | 18 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 40 | 42 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 8,547 | 7,867 |
Total aging | 8,644 | 7,951 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 27 | 26 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 20 | 18 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 50 | 40 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 13,516 | 12,734 |
Total aging | 13,706 | 12,950 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 64 | 69 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 39 | 45 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 87 | 102 |
Global Corporate Payments [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 49 | 55 |
Global Corporate Payments [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 1 | 1 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 15,348 | 13,777 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | $ 111 | $ 124 |
Loans and Accounts Receivable43
Loans and Accounts Receivable (Details 3) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.50% | 1.40% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.70% | 1.70% |
30 Days Past Due as a % of Total | 1.10% | 0.90% |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.50% | 1.70% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.80% | 1.90% |
30 Days Past Due as a % of Total | 1.20% | 1.40% |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.00% | 2.00% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.40% | 2.50% |
30 Days Past Due as a % of Total | 1.70% | 1.60% |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.20% | 2.00% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.40% | 2.20% |
30 Days Past Due as a % of Total | 1.40% | 1.50% |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Loss Ratio as a % of Charge Volume | 0.09% | 0.10% |
90 days past billing as a percentage of receivables | 0.70% | 0.70% |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.30% | 1.30% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.60% | 1.50% |
30 Days Past Due as a % of Total | 1.10% | 0.90% |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.70% | 2.00% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.00% | 2.30% |
30 Days Past Due as a % of Total | 1.40% | 1.60% |
Loans and Accounts Receivable44
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $ 244 | $ 216 |
Non-accrual loans | 173 | 150 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 228 | 199 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 151 | 113 |
Total impaired loans and receivables | 796 | 678 |
Unpaid principal balance | 738 | 632 |
Related allowance for Troubled Debt Restructurings | 81 | 73 |
Accounts Receivable and Loans Textuals [Abstract] | ||
Total loans and receivables modified as a TDR, non-accrual | 16 | 18 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 19 | 20 |
Financing Receivable, Modifications, Out of Program - success, Recorded Investment | 114 | 84 |
Financing Receivable, Modifications, Out of Program - not compliant, Recorded Investment | 37 | 29 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 162 | 140 |
Non-accrual loans | 141 | 124 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 174 | 149 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 116 | 89 |
Total impaired loans and receivables | 593 | 502 |
Unpaid principal balance | 545 | 463 |
Related allowance for Troubled Debt Restructurings | 52 | 44 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 8 | 11 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 4 | 3 |
Total impaired loans and receivables | 12 | 14 |
Unpaid principal balance | 11 | 14 |
Related allowance for Troubled Debt Restructurings | 5 | 8 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 53 | 52 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 0 | 0 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 0 | 0 |
Total impaired loans and receivables | 53 | 52 |
Unpaid principal balance | 53 | 51 |
Related allowance for Troubled Debt Restructurings | 0 | 0 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 29 | 24 |
Non-accrual loans | 32 | 26 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 28 | 23 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 24 | 18 |
Total impaired loans and receivables | 113 | 91 |
Unpaid principal balance | 104 | 85 |
Related allowance for Troubled Debt Restructurings | 10 | 9 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 18 | 16 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 7 | 3 |
Total impaired loans and receivables | 25 | 19 |
Unpaid principal balance | 25 | 19 |
Related allowance for Troubled Debt Restructurings | $ 14 | $ 12 |
Loans and Accounts Receivable45
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | $ 745 | $ 773 | $ 743 | $ 780 |
Interest income recognized | 19 | 17 | 38 | 34 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 551 | 582 | 555 | 578 |
Interest income recognized | 12 | 11 | 24 | 22 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 13 | 10 | 12 | 14 |
Interest income recognized | 0 | 0 | 0 | 0 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 54 | 55 | 53 | 58 |
Interest income recognized | 4 | 3 | 8 | 7 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 102 | 109 | 103 | 106 |
Interest income recognized | 3 | 3 | 6 | 5 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 25 | 17 | 20 | 24 |
Interest income recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Accounts Receivable46
Loans and Accounts Receivable (Details 6) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)M | Jun. 30, 2015USD ($)M | Jun. 30, 2016USD ($)M | Jun. 30, 2015USD ($)M | |
Troubled Debt Restructurings | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 9,000 | 13,000 | 20,000 | 27,000 |
Aggregated Outstanding Balance | $ 77 | $ 104 | $ 172 | $ 224 |
Card Member Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 7,000 | 10,000 | 15,000 | 21,000 |
Aggregated Outstanding Balance | $ 50 | $ 70 | $ 107 | $ 150 |
Average basis point reduction in interest rate by class of Card Member loans | 10.00% | 10.00% | 11.00% | 11.00% |
Card Member Receivables [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 2,000 | 3,000 | 5,000 | 6,000 |
Aggregated Outstanding Balance | $ 27 | $ 34 | $ 65 | $ 74 |
Average payment term extension | M | 17 | 12 | 17 | 12 |
Loans and Accounts Receivable47
Loans and Accounts Receivable (Details 7) pure in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Troubled Debt Restructurings That Subsequently Defaulted [Domain] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 2 | 4 | 4 | 7 |
Aggregated Outstanding Balance Upon Payment Default | $ 10 | $ 16 | $ 20 | $ 27 |
Card Member Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 1 | 3 | 2 | 5 |
Aggregated Outstanding Balance Upon Payment Default | $ 9 | $ 15 | $ 18 | $ 25 |
Card Member Receivables [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 1 | 1 | 2 | 2 |
Aggregated Outstanding Balance Upon Payment Default | $ 1 | $ 1 | $ 2 | $ 2 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in the Card Member loans reserve for losses | ||||
Balance, January 1 | $ 1,028 | $ 1,201 | ||
Card Member loans - provisions | $ 285 | $ 285 | 512 | 520 |
Card Member loans net write-offs - principal | (437) | (502) | ||
Card Member loans net write-offs - interest and fees | (80) | (85) | ||
Card Member loans - other | 68 | (2) | ||
Balance, March 31 | $ 1,091 | $ 1,132 | $ 1,091 | $ 1,132 |
Reserves For Losses (Details 1)
Reserves For Losses (Details 1) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Abstract] | ||
Card Member loans evaluated individually for impairment | $ 342 | $ 279 |
Reserves on Card Member loans evaluated individually for impairment | 62 | 53 |
Card Member loans evaluated collectively for impairment | 59,545 | 58,294 |
Reserves on Card Member loans evaluated collectively for impairment | $ 1,029 | $ 975 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in the Card Member receivables reserve for losses | ||||
Balance, January 1 | $ 462 | $ 465 | ||
Card Member receivables - provisions | $ 153 | $ 165 | 322 | 339 |
Card Member receivables - net write-offs | (359) | (370) | ||
Card Member receivables - other | (2) | (14) | ||
Balance, March 31 | $ 423 | $ 420 | $ 423 | $ 420 |
Reserves for Losses (Details 3)
Reserves for Losses (Details 3) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Abstract] | ||
Card Member receivables evaluated individually for impairment | $ 37 | $ 33 |
Reserves on Card Member receivables evaluated individually for impairment | 19 | 20 |
Card Member receivables evaluated collectively for impairment | 45,186 | 44,100 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 404 | $ 442 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Card Member receivables - other | $ (2,000,000) | $ (14,000,000) | ||
Card Member loans reserves for losses - other | 68,000,000 | (2,000,000) | ||
Allowance for Card Member Receivables and Reserves, Recoveries of Bad Debts | 202,000,000 | 201,000,000 | ||
Allowance for Card Member Loans, Recoveries of Bad Debts | 179,000,000 | 212,000,000 | ||
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | 16,000,000 | 42,000,000 | ||
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | 17,000,000 | 22,000,000 | ||
CardMember loans transferred from HFS to held for investment | $ 245,000,000 | |||
Unauthorized Transactions [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Card Member receivables - other | 0 | |||
Card Member loans reserves for losses - other | 0 | |||
Foreign Currency Translation Adjustments [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Card Member receivables - other | (1,000,000) | (7,000,000) | ||
Card Member loans reserves for losses - other | (2,000,000) | (8,000,000) | ||
Other Items [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Card Member receivables - other | (1,000,000) | (7,000,000) | ||
Card Member loans reserves for losses - other | $ 3,000,000 | $ 6,000,000 | ||
CardMember loans transferred from HFS to held for investment | 245,000,000 | $ 20,000,000 | ||
CardMember reserves associated with loans held for investments | $ 60,000,000 | $ 7,000,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available for Sale Securities by Type | ||
Cost | $ 3,792 | $ 3,668 |
Gross Unrealized Gains | 101 | 100 |
Gross Unrealized Losses | (1) | (9) |
Estimated Fair Value | 3,892 | 3,759 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 2,530 | 2,813 |
Gross Unrealized Gains | 72 | 85 |
Gross Unrealized Losses | 0 | (5) |
Estimated Fair Value | 2,602 | 2,893 |
U.S. Government agency obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 2 | 2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 2 | 2 |
U.S. Government treasury obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 354 | 406 |
Gross Unrealized Gains | 14 | 4 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | 368 | 409 |
Corporate debt securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 26 | 29 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 27 | 30 |
Mortgage-backed securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 111 | 117 |
Gross Unrealized Gains | 5 | 4 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 116 | 121 |
Equity securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 1 | 1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1 | 1 |
Foreign government bonds and obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 718 | 250 |
Gross Unrealized Gains | 9 | 6 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | 727 | 255 |
Availabe For Sale Securities Other [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 50 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (2) |
Estimated Fair Value | $ 49 | $ 48 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 452 |
Estimated Fair Value, 12 months or more | 33 | 46 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | (5) |
Gross Unrealized Losses, 12 months or more | (1) | (4) |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 100 |
Estimated Fair Value, 12 months or more | 0 | 13 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | (3) |
Gross Unrealized Losses, 12 months or more | 0 | (2) |
Foreign government bonds and obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 99 |
Estimated Fair Value, 12 months or more | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | (1) |
Gross Unrealized Losses, 12 months or more | 0 | 0 |
U.S. Government agency obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 253 |
Estimated Fair Value, 12 months or more | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | (1) |
Gross Unrealized Losses, 12 months or more | 0 | 0 |
Other [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 0 |
Estimated Fair Value, 12 months or more | 33 | 33 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | $ (1) | $ (2) |
Investment Securities (Detail55
Investment Securities (Details 2) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)securities | Dec. 31, 2015USD ($)securities | |
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 0 | 52 |
Number of securities, 12 months or more | securities | 24 | 17 |
Number of securities, total | securities | 24 | 69 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 450 |
Estimated Fair Value, 12 months or more | 36 | 46 |
Estimated Fair Value, Total | 36 | 496 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | (5) |
Gross Unrealized Losses, 12 months or more | (1) | (4) |
Gross Unrealized Losses, Total | $ (1) | $ (9) |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 0 | 52 |
Number of securities, 12 months or more | securities | 24 | 15 |
Number of securities, total | securities | 24 | 67 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 450 |
Estimated Fair Value, 12 months or more | 36 | 37 |
Estimated Fair Value, Total | 36 | 487 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | (5) |
Gross Unrealized Losses, 12 months or more | (1) | (2) |
Gross Unrealized Losses, Total | $ (1) | $ (7) |
Ratio Of Fair Value To Amortized Cost Less Than Ninety Percent [Member] | ||
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 0 | 0 |
Number of securities, 12 months or more | securities | 0 | 2 |
Number of securities, total | securities | 0 | 2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 0 |
Estimated Fair Value, 12 months or more | 0 | 9 |
Estimated Fair Value, Total | 0 | 9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | 0 | (2) |
Gross Unrealized Losses, Total | $ 0 | $ (2) |
Investment Securities (Detail56
Investment Securities (Details 3) $ in Millions | Jun. 30, 2016USD ($) |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | $ 815 |
Due after 1 year but within 5 years | 172 |
Due after 5 years but within 10 years | 413 |
Due after 10 years | 2,341 |
Total | 3,741 |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 817 |
Estimated Fair Value, Due after 1 year but within 5 years | 177 |
Estimated Fair Value, Due after 5 years but within 10 years | 435 |
Estimated Fair Value, Due after 10 years | 2,413 |
Total | $ 3,842 |
Investment Securities (Detail57
Investment Securities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Investment Securities (Details) [Abstract] | ||
Other-than-temporary impairments recognized during the period | $ 0 | $ 0 |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets from Trusts [Line Items] | ||
Restricted cash | $ 35 | $ 155 |
American Express Charge Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | 2 | 2 |
American Express Lending Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | $ 33 | $ 153 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) $ in Billions | Jun. 30, 2016USD ($) |
American Express Charge Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 2.5 |
American Express Lending Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 13.9 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
U.S.: | ||
Interest-bearing | $ 53,666 | $ 54,102 |
Non-interest-bearing | 343 | 478 |
Non-U.S.: | ||
Interest-bearing | 89 | 82 |
Non-interest-bearing | 306 | 335 |
Total customer deposits | 54,404 | 54,997 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 311 | 389 |
Non-U.S.: | ||
Non-interest-bearing | $ 293 | $ 323 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 30,221 | $ 29,023 |
Certificates of deposit - Direct | 287 | 281 |
Certificates of deposit - Third party | 13,460 | 13,856 |
Sweep accounts - Third party | 9,698 | 10,942 |
Other retail deposits: | ||
Non-U.S. deposits and U.S. non-interest bearing deposits | 134 | 183 |
Card Member credit balances - U.S. and non-U.S. | 604 | 712 |
Total customer deposits | $ 54,404 | $ 54,997 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Jun. 30, 2016USD ($) |
Time Deposits By Maturity | |
2,016 | $ 2,035 |
2,017 | 3,662 |
2,018 | 3,197 |
2,019 | 2,332 |
2,020 | 2,517 |
After 5 years | 14 |
Total | 13,757 |
United States [Member] | |
Time Deposits By Maturity | |
2,016 | 2,030 |
2,017 | 3,657 |
2,018 | 3,197 |
2,019 | 2,332 |
2,020 | 2,517 |
After 5 years | 14 |
Total | 13,747 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,016 | 5 |
2,017 | 5 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
After 5 years | 0 |
Total | $ 10 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Time Deposits $250,000 Or More [Abstract] | ||
U.S. | $ 113 | $ 105 |
Non-U.S. | 3 | 1 |
Total | $ 116 | $ 106 |
Contingencies (Details Textuals
Contingencies (Details Textuals) $ in Millions | Jun. 30, 2016USD ($) |
Contingencies (Textuals) [Abstract] | |
Range of possible loss, minimum | $ 0 |
Range of possible loss, maximum | $ 350 |
Derivatives and Hedging Activ65
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | $ 1,143 | $ 544 |
Total fair value of derivatives liabilties | 389 | 201 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | (361) | (155) |
Derivative asset and liability netting | (169) | (107) |
Total derivative assets, net | 613 | 282 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 668 | 427 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 452 | 236 |
Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 216 | 191 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 475 | 117 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | 0 | 0 |
Derivative asset and liability netting | (169) | (107) |
Total derivative liabilities, net | 220 | 94 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 141 | 66 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 248 | 135 |
Other Liabilities [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 0 | 9 |
Other Liabilities [Member] | Net Investment Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 141 | 57 |
Risk Exposure Low [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, net | 574 | 282 |
Total derivative liabilities, net | 0 | |
Individually Significant Counterparties [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, net | 0 | 0 |
Total derivative liabilities, net | $ 0 | $ 0 |
Derivatives and Hedging Activ66
Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contracts [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative contract | $ 61 | $ (89) | $ 226 | $ (26) |
Hedged item | (53) | 85 | (224) | 29 |
Net hedge ineffectiveness | $ 8 | $ (4) | $ 2 | $ 3 |
Derivatives and Hedging Activ67
Derivatives and Hedging Activities (Details 2) - Other Expense [Member] - Foreign exchange contracts [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 5 | $ 0 | $ 5 | $ 0 |
Amount Of Ineffectiveness On Net Investment Hedges | $ 0 | $ 1 | $ 0 | $ 1 |
Derivatives and Hedging Activ68
Derivatives and Hedging Activities (Details Textuals) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||||
Net reduction in interest expense on long term debt and other | $ 59,000,000 | $ 71,000,000 | $ 118,000,000 | $ 140,000,000 | |
Derivative asset not offset | $ 8 | ||||
Shares held in equity investment sold | 0 | 0 | |||
Margin On Interest Rate Swap Not Netted | $ 159,000,000 | $ 159,000,000 | 149,000,000 | ||
Derivative [Line Items] | |||||
Equity investment | 1,000,000 | 1,000,000 | 1,000,000 | ||
Effective portion of gain (loss) on hedges | 135,000,000 | (34,000,000) | 43,000,000 | 161,000,000 | |
Net hedge ineffectiveness | 0 | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 87,000,000 | 381,000,000 | |||
Not Sold Or Repledged [Member] | |||||
Derivative [Line Items] | |||||
Securities received as collateral | 30,000,000 | 30,000,000 | 0 | ||
Risk Exposure Low [Member] | |||||
Derivative [Line Items] | |||||
Total derivative assets, net | 583,000,000 | 583,000,000 | |||
Other Expense [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) in Changes of Fair Value of Derivatives not designated as hedges | 6,000,000 | 8,000,000 | 8,000,000 | 105,000,000 | |
Gain on embedded derivatives | 0 | $ 4,000,000 | 6,000,000 | $ 3,000,000 | |
ICBC [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||||
Derivative [Line Items] | |||||
Equity investment | 0 | 0 | |||
Fair Value Hedges [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of long-term debt | 20,250,000,000 | 20,250,000,000 | $ 18,800,000,000 | ||
Net Investment Hedging [Member] | Other Expense [Member] | |||||
Derivative [Line Items] | |||||
Amount reclassified from AOCI into income | 0 | ||||
Net hedge ineffectiveness | 0 | ||||
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Other Expense [Member] | |||||
Derivative [Line Items] | |||||
Amount reclassified from AOCI into income | 0 | ||||
Credit Valuation Adjustment [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of long-term debt | $ 0 | $ 0 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investment securities: | ||
Equity securities | $ 1 | $ 1 |
Debt securities and other | 3,891 | 3,758 |
Derivatives | 1,143 | 544 |
Total assets | 5,035 | 4,303 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities | 1 | 1 |
Debt securities and other | 368 | 409 |
Derivatives | 0 | 0 |
Total assets | 369 | 410 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities and other | 3,523 | 3,349 |
Derivatives | 1,143 | 544 |
Total assets | 4,666 | 3,893 |
Level 3 [Member] | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities and other | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | $ 0 | $ 0 |
Fair Values (Details 1)
Fair Values (Details 1) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Liabilities [Abstract] | ||
Derivatives | $ 389 | $ 201 |
Total liabilities | 389 | 201 |
Level 1 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 389 | 201 |
Total liabilities | 389 | 201 |
Level 3 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | $ 33,767 | $ 22,762 | $ 21,071 | $ 22,288 |
Financial assets carried at other than fair value | ||||
Card Member loans and receivables HFS | 0 | 14,992 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,757 | |||
Long-term debt | 50,649 | 48,061 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 44,800 | 43,671 | ||
Card Member loans, net | 58,796 | 57,545 | ||
Variable Interest Enterprise [Member] | ||||
Financial assets carried at other than fair value | ||||
Card Member loans and receivables HFS | 0 | 4,966 | ||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 14,609 | 13,602 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 34,000 | 23,000 | ||
Other financial assets | 48,000 | 47,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 60,000 | 59,000 | ||
Card Member loans and receivables HFS | 0 | 15,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 63,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 14,000 | 14,000 | ||
Long-term debt | 51,000 | 48,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 34,000 | 23,000 | ||
Other financial assets | 48,000 | 47,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 61,000 | 60,000 | ||
Card Member loans and receivables HFS | 0 | 15,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 63,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 14,000 | 14,000 | ||
Long-term debt | 52,000 | 49,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 14,700 | 13,600 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 5,800 | 6,700 | ||
Card Member loans, net | 25,300 | 23,500 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 33,000 | 22,000 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 0 | 0 | ||
Card Member loans and receivables HFS | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Level 2 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 1,000 | 1,000 | ||
Other financial assets | 48,000 | 47,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 0 | 0 | ||
Card Member loans and receivables HFS | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 63,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 14,000 | 14,000 | ||
Long-term debt | 52,000 | 49,000 | ||
Level 3 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 0 | 0 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 61,000 | 60,000 | ||
Card Member loans and receivables HFS | 0 | 15,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 0 | 0 | ||
Long-term debt | $ 0 | $ 0 |
Fair Values (Details Textuals)
Fair Values (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2016 | |
Fair Value Assets Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Impairment of Goodwill Prepaid Services | $ 219 | |
Impairment Charge - Technology and Other Assets writedown to Fair Value | 165 | |
Goodwill And Intangible Asset Impairment | 384 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Assets measured at fair value for impairment | $ 0 | $ 0 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 50,000 | $ 48,000 |
Amount of related liability | 85 | 86 |
Return And Merchant Protection [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 44,000 | 42,000 |
Amount of related liability | 41 | 49 |
Other Guarantees [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 6,000 | 6,000 |
Amount of related liability | $ 44 | $ 37 |
Changes in Accumulated Other 74
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in Other Comprehensive income | ||||
Balances as of start of period | $ (2,534) | |||
(Decrease) increase due to amounts reclassified into earnings | $ 0 | $ 1 | ||
Pension and other postretirement benefit gains | 6 | $ 6 | 32 | 29 |
Balances as of end of period | (2,621) | (2,621) | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (2,502) | (2,151) | (2,534) | (1,919) |
Net unrealized gains (losses) | 5 | (20) | 9 | (20) |
(Decrease) increase due to amounts reclassified into earnings | 0 | 1 | 2 | 1 |
Net translation loss of investments in foreign operations | (265) | 45 | (169) | (405) |
Net losses gains related to hedges of investment in foreign operations | 135 | (33) | 43 | 162 |
Pension and other postretirement benefit gains | 6 | 6 | 32 | 29 |
Net change in accumulated other comprehensive income (loss) | (119) | (3) | (87) | (235) |
Balances as of end of period | (2,621) | (2,154) | (2,621) | (2,154) |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | 60 | 96 | 58 | 96 |
Net unrealized gains (losses) | 5 | (20) | 9 | (20) |
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 | (2) | |
Net translation loss of investments in foreign operations | 0 | 0 | 0 | 0 |
Net losses gains related to hedges of investment in foreign operations | 0 | 0 | 0 | 0 |
Pension and other postretirement benefit gains | 0 | 0 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | 5 | (20) | 7 | (20) |
Balances as of end of period | 65 | 76 | 65 | 76 |
Foreign Currency Translation Adjustments [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (2,040) | (1,754) | (2,044) | (1,499) |
Net unrealized gains (losses) | 0 | 0 | 0 | 0 |
(Decrease) increase due to amounts reclassified into earnings | (1) | 0 | (1) | |
Net translation loss of investments in foreign operations | (265) | 45 | (169) | (405) |
Net losses gains related to hedges of investment in foreign operations | 135 | (33) | 43 | 162 |
Pension and other postretirement benefit gains | 0 | 0 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | (130) | 11 | (126) | (244) |
Balances as of end of period | (2,170) | (1,743) | (2,170) | (1,743) |
Net Unrealized Pension and Other Postretirement Gains (Losses) [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (522) | (493) | (548) | (516) |
Net unrealized gains (losses) | 0 | 0 | 0 | 0 |
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 | 0 | 0 |
Net translation loss of investments in foreign operations | 0 | 0 | 0 | 0 |
Net losses gains related to hedges of investment in foreign operations | 0 | 0 | 0 | 0 |
Pension and other postretirement benefit gains | 6 | 6 | 32 | 29 |
Net change in accumulated other comprehensive income (loss) | 6 | 6 | 32 | 29 |
Balances as of end of period | $ (516) | $ (487) | $ (516) | $ (487) |
Changes in Accumulated Other 75
Changes in Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other non-interest revenue | $ 545 | $ 521 | $ 1,031 | $ 989 |
Interest expense on long-term debt and other | 286 | 305 | 561 | 612 |
Other expenses | 470 | 1,535 | 1,890 | 2,934 |
(Decrease) increase due to amounts reclassified into earnings | 0 | 1 | ||
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other non-interest revenue | 0 | |||
Income tax provision for other non-interest revenue | 0 | |||
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 | (2) | |
Foreign Currency Translation Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Decrease) increase due to amounts reclassified into earnings | (1) | 0 | (1) | |
Accumulated Other Comprehensive Loss [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Decrease) increase due to amounts reclassified into earnings | 0 | 1 | 2 | 1 |
Reclassification out of accumulated other comprehensive income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Decrease) increase due to amounts reclassified into earnings | 1 | 2 | ||
Reclassification out of accumulated other comprehensive income [Member] | Net Unrealized Gains (Losses) on Investment Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other non-interest revenue | 0 | 0 | 4 | 0 |
Income tax provision for other non-interest revenue | 0 | 0 | (2) | 0 |
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 | 2 | 0 |
Reclassification out of accumulated other comprehensive income [Member] | Foreign Currency Translation Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax benefit for other, net expense | 0 | 0 | 0 | 0 |
Other, net expense, net of taxes | 0 | 1 | 0 | 1 |
(Decrease) increase due to amounts reclassified into earnings | $ 0 | $ 1 | $ 0 | $ 1 |
Non-Interest Revenue and Expe76
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Foreign currency conversion fee revenue | $ 207 | $ 222 | $ 403 | $ 433 |
Delinquency fees | 192 | 194 | 392 | 389 |
Loyalty Partner-related fees | 104 | 88 | 198 | 179 |
Travel commissions and fees | 87 | 95 | 167 | 184 |
Service fees | 79 | 95 | 157 | 182 |
Other | 33 | 33 | 65 | 68 |
Total Other fees and commissions | $ 702 | $ 727 | $ 1,382 | $ 1,435 |
Non-Interest Revenue and Expe77
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Global Network Services partner revenues | $ 197 | $ 155 | $ 342 | $ 318 |
Gross realized gains on investment securities | 0 | 0 | 4 | 0 |
Other | 348 | 366 | 685 | 671 |
Total other revenues | $ 545 | $ 521 | $ 1,031 | $ 989 |
Non-Interest Revenue and Expe78
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Professional services | $ 628 | $ 655 | $ 1,232 | $ 1,279 |
Occupancy and equipment | 438 | 415 | 903 | 849 |
Card and merchant-related fraud losses | 80 | 85 | 163 | 183 |
Communications | 57 | 83 | 115 | 282 |
Gain on sale of held for sale (HFS) portfolio | 1,091 | 0 | 1,218 | 0 |
Other | 358 | 297 | 695 | 450 |
Total other, net | $ 470 | $ 1,535 | $ 1,890 | $ 2,934 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes (Textuals) | ||||
Unrecognized tax benefits as a result of potential resolutions of prior years' tax | $ 237 | $ 237 | ||
Unrecognized tax benefits, amounts recorded to equity | $ 21 | $ 21 | ||
Actual tax rates | 33.20% | 33.90% | 33.80% | 34.00% |
Internal Revenue Service (IRS) [Member] | Earliest Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Open tax years by major tax jurisdiction | 2,008 | |||
Internal Revenue Service (IRS) [Member] | Latest Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Open tax years by major tax jurisdiction | 2,014 |
Earnings Per Common Share (EP80
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||||
Basic and diluted: | ||||||||
Net income | $ 2,015 | $ 1,473 | $ 3,441 | $ 2,998 | ||||
Preferred dividends | (19) | (20) | (40) | (20) | ||||
Net income available to common stockholders - basic | 1,996 | 1,453 | 3,401 | 2,978 | ||||
Net income available to common stockholders - diluted | 1,996 | 1,453 | 3,401 | 2,978 | ||||
Earnings allocated to participating share awards | (17) | (11) | (28) | (22) | ||||
Net income attributable to common shareholders | $ 1,979 | $ 1,442 | $ 3,373 | $ 2,956 | ||||
Denominator: | ||||||||
Basic | 938 | 1,009 | 949 | 1,013 | ||||
Add: Weighted-average stock options | 3 | 4 | 3 | 5 | ||||
Diluted | 941 | 1,013 | 952 | 1,018 | ||||
Earnings Per Common Share, Basic (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 2.11 | [1] | $ 1.43 | [1] | $ 3.55 | [2] | $ 2.92 | [2] |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 2.1 | [3] | $ 1.42 | [3] | $ 3.54 | [4] | $ 2.9 | [4] |
Earnings Per Common Share (Textuals) [Abstract] | ||||||||
Subordinated debentures | $ 750 | $ 750 | ||||||
Subordinated debt issuance year | 2,006 | |||||||
Subordinated debt maturity year | 2,036 | |||||||
Stock options [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Antidilutive securities excluded from computation of earnings per Share, amount | 2.5 | 0.6 | 1.7 | 0.5 | ||||
[1] | Represents net income less ( i ) earnings allocated to participating share awards of $ 17 million and $ 11 million for the three months ended June 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 19 million and $ 20 million for the three months ended June 30 , 2016 and 2015 , respectively. | |||||||
[2] | Represents net income less ( i ) earnings allocate d to participating share awards of $ 28 million and $ 22 million for the six months ended June 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 40 million and $ 20 million for the six months ended June 30 , 2016 and 2015 , respectively. | |||||||
[3] | Represents net income less ( i ) earnings allocated to participating share awards of $ 17 million and $ 11 million for the three months ended June 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 19 million and $ 20 million for the three months ended June 30 , 2016 and 2015 , respectively. | |||||||
[4] | Represents net income less ( i ) earnings allocate d to participating share awards of $ 28 million and $ 22 million for the six months ended June 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 40 million and $ 20 million for the six months ended June 30 , 2016 and 2015 , respectively. |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | $ 6,786 | $ 6,861 | $ 13,294 | $ 13,364 | |
Interest income | 1,885 | 1,837 | 3,890 | 3,694 | |
Interest expense | 436 | 414 | 861 | 824 | |
Total revenues, net of interest expense | 8,235 | 8,284 | 16,323 | 16,234 | |
Net income | 2,015 | 1,473 | 3,441 | 2,998 | |
Total assets | 159,642 | 157,000 | 159,642 | 157,000 | $ 161,184 |
Total equity | 20,712 | 22,000 | 20,712 | 22,000 | $ 20,673 |
U S Consumer Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 2,069 | 2,176 | 4,098 | 4,207 | |
Interest income | 1,278 | 1,252 | 2,669 | 2,525 | |
Interest expense | 139 | 121 | 279 | 235 | |
Total revenues, net of interest expense | 3,208 | 3,307 | 6,488 | 6,497 | |
Net income | 1,067 | 613 | 1,761 | 1,272 | |
Total assets | 81,000 | 84,000 | 81,000 | 84,000 | |
Total equity | 7,000 | 8,000 | 7,000 | 8,000 | |
International Consumer and Network Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,242 | 1,163 | 2,382 | 2,308 | |
Interest income | 234 | 237 | 461 | 482 | |
Interest expense | 58 | 58 | 112 | 121 | |
Total revenues, net of interest expense | 1,418 | 1,342 | 2,731 | 2,669 | |
Net income | 228 | 193 | 416 | 390 | |
Total assets | 35,000 | 29,000 | 35,000 | 29,000 | |
Total equity | 3,000 | 3,000 | 3,000 | 3,000 | |
Global Commercial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 2,280 | 2,285 | 4,470 | 4,460 | |
Interest income | 310 | 289 | 631 | 567 | |
Interest expense | 104 | 91 | 199 | 180 | |
Total revenues, net of interest expense | 2,486 | 2,483 | 4,902 | 4,847 | |
Net income | 576 | 550 | 1,061 | 1,067 | |
Total assets | 46,000 | 46,000 | 46,000 | 46,000 | |
Total equity | 8,000 | 7,000 | 8,000 | 7,000 | |
Global Merchant Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,087 | 1,130 | 2,128 | 2,200 | |
Interest income | 1 | 1 | 1 | 1 | |
Interest expense | (61) | (49) | (120) | (108) | |
Total revenues, net of interest expense | 1,149 | 1,180 | 2,249 | 2,309 | |
Net income | 373 | 369 | 730 | 738 | |
Total assets | 24,000 | 17,000 | 24,000 | 17,000 | |
Total equity | 2,000 | 2,000 | 2,000 | 2,000 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 108 | 107 | 216 | 189 | |
Interest income | 62 | 58 | 128 | 119 | |
Interest expense | 196 | 193 | 391 | 396 | |
Total revenues, net of interest expense | (26) | (28) | (47) | (88) | |
Net income | (229) | (252) | (527) | (469) | |
Total assets | (26,000) | (19,000) | (26,000) | (19,000) | |
Total equity | $ 1,000 | $ 2,000 | $ 1,000 | $ 2,000 |