Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 18, 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 | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 915,255,379 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||||
Non-interest revenues | ||||||||
Discount revenue | $ 4,516 | $ 4,778 | $ 13,983 | $ 14,384 | ||||
Net card fees | 747 | 679 | 2,161 | 2,013 | ||||
Other fees and commissions | 694 | 727 | 2,076 | 2,162 | ||||
Other | 483 | 504 | 1,514 | 1,493 | ||||
Total non-interest revenues | 6,440 | 6,688 | 19,734 | 20,052 | ||||
Interest income | ||||||||
Interest on loans | 1,690 | 1,847 | 5,446 | 5,418 | ||||
Interest and dividends on investment securities | 34 | 38 | 104 | 120 | ||||
Deposits with banks and other | 40 | 19 | 104 | 60 | ||||
Total interest income | 1,764 | 1,904 | 5,654 | 5,598 | ||||
Interest expense | ||||||||
Deposits | 150 | 125 | 450 | 337 | ||||
Long-term debt and other | 280 | 274 | 841 | 886 | ||||
Total interest expense | 430 | 399 | 1,291 | 1,223 | ||||
Net interest income | 1,334 | 1,505 | 4,363 | 4,375 | ||||
Total revenues net of interest expense | 7,774 | 8,193 | 24,097 | 24,427 | ||||
Provisions for losses | ||||||||
Charge card | 174 | 203 | 496 | 542 | ||||
Card Member loans | 319 | 309 | 831 | 829 | ||||
Other | 11 | 17 | 74 | 45 | ||||
Total provisions for losses | 504 | 529 | 1,401 | 1,416 | ||||
Total revenues net of interest expense after provisions for losses | 7,270 | 7,664 | 22,696 | 23,011 | ||||
Expenses | ||||||||
Marketing and promotion | 930 | 847 | 2,445 | 2,217 | ||||
Card Member Rewards | 1,566 | 1,763 | 5,035 | 5,202 | ||||
Card Member services and other | 278 | 269 | 841 | 772 | ||||
Salaries and employee benefits | 1,263 | 1,212 | 4,052 | 3,767 | ||||
Other, net | 1,498 | 1,635 | 3,388 | 4,569 | ||||
Total expenses | 5,535 | 5,726 | 15,761 | 16,527 | ||||
Pretax income | 1,735 | 1,938 | 6,935 | 6,484 | ||||
Income tax provision | 593 | 672 | 2,352 | 2,220 | ||||
Income from continuing operations | 1,142 | 1,266 | 4,583 | 4,264 | ||||
Net income | $ 1,142 | $ 1,266 | $ 4,583 | $ 4,264 | ||||
Earnings Per Common Share, Basic (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 1.21 | [1] | $ 1.24 | [1] | $ 4.77 | [2] | $ 4.16 | [2] |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 1.2 | [3] | $ 1.24 | [3] | $ 4.76 | [4] | $ 4.15 | [4] |
Average common shares outstanding for earnings per common share: | ||||||||
Basic | 920 | 994 | 940 | 1,007 | ||||
Diluted | 923 | 997 | 943 | 1,011 | ||||
Cash dividends declared per common share | $ 0.32 | $ 0.29 | $ 0.9 | $ 0.84 | ||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 9 million and $ 10 million for the three months ended September 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 21 million and $ 22 million for the three months ended September 30 , 2016 and 2015 , respectively. | |||||||
[2] | Represents net income less (i) earnings allocate d to participating share awards of $ 37 million and $ 32 million for the nine months ended September 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 61 million and $ 42 million for the nine months ended September 30 , 2016 and 2015 , respectively. | |||||||
[3] | Represents net income less (i) earnings allocated to participating share awards of $ 9 million and $ 10 million for the three months ended September 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 21 million and $ 22 million for the three months ended September 30 , 2016 and 2015 , respectively. | |||||||
[4] | Represents net income less (i) earnings allocate d to participating share awards of $ 37 million and $ 32 million for the nine months ended September 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 61 million and $ 42 million for the nine months ended September 30 , 2016 and 2015 , respectively. |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Income [Abstract] | ||||
Earnings allocated to participating share awards | $ 9 | $ 10 | $ 37 | $ 32 |
Dividends Preferred Stock | $ 21 | $ 22 | $ 61 | $ 42 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,142 | $ 1,266 | $ 4,583 | $ 4,264 |
Other comprehensive income (loss): | ||||
Net unrealized securities gains, net of tax | (15) | (7) | (8) | (27) |
Foreign currency translation adjustments, net of tax | 11 | (220) | (115) | (464) |
Pension and other postretirement benefit gains | 7 | 7 | 39 | 36 |
Other comprehensive income (loss) | 3 | (220) | (84) | (455) |
Comprehensive income | $ 1,145 | $ 1,046 | $ 4,499 | $ 3,809 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Comprehensive Income Loss Textuals [Abstract] | ||||
Net unrealized securities gains (losses), tax | $ (9) | $ (2) | $ (7) | $ (13) |
Foreign currency translation adjustments, tax | (24) | 181 | 37 | 221 |
Net unrealized pension and other postretirement benefit gains, tax | $ 7 | $ 8 | $ 36 | $ 24 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | ||
Cash and due from banks | $ 2,524,000 | $ 2,935,000 |
Interest-bearing deposits in banks | 22,988,000 | 19,569,000 |
Short-term investment securities | 1,008,000 | 258,000 |
Total cash and cash equivalents | 26,520,000 | 22,762,000 |
Card Member loans and receivables held for sale (includes gross loans and receivables available to settle obligations of consolidated variable interest entities) | 0 | 14,992,000 |
Accounts receivable | ||
Card Member receivables (includes gross receivables available to settle obligations of consolidated variable interest entity), less reserves | 44,821,000 | 43,671,000 |
Other receivables, less reserves | 2,510,000 | 3,024,000 |
Loans | ||
Card Member loans (includes gross loans available to settle obligations of consolidated variable interest entity), less reserves | 59,504,000 | 57,545,000 |
Other loans, less reserves | 1,157,000 | 1,254,000 |
Investment securities | 3,728,000 | 3,759,000 |
Premises and equipment, less accumulated depreciation and amortization | 4,301,000 | 4,108,000 |
Other assets (includes restricted cash of consolidated variable interest entities) | 10,836,000 | 10,069,000 |
Total assets | 153,377,000 | 161,184,000 |
Liabilities | ||
Customer deposits | 53,500,000 | 54,997,000 |
Travelers Cheques and other prepaid products | 2,656,000 | 3,247,000 |
Accounts payable | 11,372,000 | 11,822,000 |
Short-term borrowings (includes debt issued by consolidated variable interest entity) | 2,861,000 | 4,812,000 |
Long-term debt (includes debt issued by consolidated variable interest entities) | 44,894,000 | 48,061,000 |
Other liabilities | 17,077,000 | 17,572,000 |
Total liabilities | 132,360,000 | 140,511,000 |
Shareholders' Equity | ||
Preferred shares | 0 | 0 |
Common shares | 184,000 | 194,000 |
Additional paid-in capital | 12,790,000 | 13,348,000 |
Retained earnings | 10,661,000 | 9,665,000 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, net of tax | 50,000 | 58,000 |
Foreign currency translation adjustments, net of tax | (2,159,000) | (2,044,000) |
Net unrealized pension and other postretirement benefit losses, net of tax | (509,000) | (548,000) |
Total accumulated other comprehensive loss | (2,618,000) | (2,534,000) |
Total shareholders' equity | 21,000,000 | 20,673,000 |
Total liabilities and shareholders' equity | $ 153,377,000 | $ 161,184,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Card Member receivables, gross | $ 45,258 | $ 44,133 |
Card Member loans, gross | 60,618 | 58,573 |
Other assets | 10,836 | 10,069 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 243 | 41 |
Accounts receivable | ||
Card Member receivables, reserves | 437 | 462 |
Other receivables, reserves | 48 | 43 |
Card Member loans and receivables HFS | 0 | 14,992 |
Loans | ||
Card Member loans, reserves | 1,114 | 1,028 |
Other loans, reserves | 30 | 20 |
Accumulated depreciation and amortization | 4,995 | 6,801 |
Restricted cash | 612 | 155 |
Short Term Borrowings | 2,861 | 4,812 |
Long-term Debt | $ 44,894 | $ 48,061 |
Common shares, par value | $ 0.2 | $ 0.2 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 917,000,000 | 969,000,000 |
Common shares, outstanding | 917,000,000 | 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 | $ 25 | $ 32 |
Foreign currency translation adjustments, tax | (63) | (100) |
Net unrealized pension and other postretirement benefit losses, tax | (188) | (223) |
Variable Interest Enterprise [Member] | ||
Card Member receivables, gross | 5,485 | 6,649 |
Card Member loans, gross | 24,752 | 23,559 |
Accounts receivable | ||
Card Member loans and receivables HFS | 0 | 4,966 |
Loans | ||
Restricted cash | 612 | 155 |
Short Term Borrowings | 0 | 100 |
Long-term Debt | $ 14,759 | $ 13,602 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Cash Flows from Operating Activities | |||
Net income | $ 4,583 | $ 4,264 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Provisions for losses | 1,401 | 1,416 | |
Depreciation and amortization | 810 | 780 | |
Deferred taxes and other | (1,076) | 135 | |
Stock-based compensation | 190 | 200 | |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other receivables | 485 | (203) | |
Other assets | 115 | 1,864 | |
Accounts payable and other liabilities | (1,028) | (53) | |
Travelers Cheques and other prepaid products | (594) | (579) | |
Net cash provided by operating activities | 4,886 | 7,824 | |
Cash Flows from Investing Activities | |||
Sales of available-for-sale investment securities | 51 | 12 | |
Maturities and redemptions of available-for-sale investment securities | 1,209 | 1,821 | |
Sales of other investments | 0 | 0 | |
Purchase of investments | (1,355) | (1,564) | |
Net decrease (increase) in Card Member receivables and loans, including held for sale | [1] | 11,818 | (1,292) |
Purchase of premises and equipment, net of sales | (975) | (879) | |
Acquisitions/Dispositions, net of cash acquired | (191) | (122) | |
Net decrease (increase) in restricted cash | (427) | (683) | |
Net cash provided by (used in) investing activities | 10,130 | (2,707) | |
Cash Flows from Financing Activities | |||
Net (decrease) increase in customer deposits | (1,499) | 5,171 | |
Net (decrease) increase in short-term borrowings | (2,040) | (273) | |
Issuance of long-term debt | 5,926 | 7,923 | |
Principal payments on long-term debt | (9,349) | (16,858) | |
Issuance of American Express preferred shares | 0 | 841 | |
Issuance of American Express common shares | 78 | 169 | |
Repurchase of American Express common shares | (3,477) | (3,330) | |
Dividends paid | (892) | (868) | |
Net cash used in financing activities | (11,253) | (7,225) | |
Effect of foreign currency exchange rates on cash and cash equivalents | (5) | (242) | |
Net increase (decrease) in cash and cash equivalents | 3,758 | (2,350) | |
Cash and cash equivalents at beginning of period | 22,762 | 22,288 | |
Cash and cash equivalents at end of period | $ 26,520 | $ 19,938 | |
[1] | Re fer to Note 2 for additional information. |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 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 | 9 Months Ended |
Sep. 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 & Oth er. 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 peri ods mentioned above. For the nine months e nded September 30, 2015, this revision resulted in a $250 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 Consoli dated Statements 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 ne w standard early and continues to evaluate the method of implementation and the impact this guidance will have on its financial position, results of operations and cash flows, among other items. In January 2016, the FASB issued new accounting guidance on the recognition and measurement of financial assets and financial 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 disclosure requirements associated with the fair value of financial instruments. The Company continues to evaluate the impact this guidance will have on its financial position, results of operations and cash flows, among other items. In February 2016, th e FASB 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 does not intend to adopt the ne w standard early and continues to evaluate the impact this 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 t he Consolidated Statements of Cash Flows. Among other items, the guidance requires excess tax benefits and deficiencies , which under previous guidance would have been recorded within a dditional paid-in capital , to now be recognized in the income tax provis ion within the results of operations. The Company continues to evaluate the impact this guidance will have on its financial position, results of operations and cash flows, among other items, but does not expect the impacts of the standard to be material up on adoption. The Company will adopt the standard, prospectively, effective January 1, 2017. In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, which is effective January 1, 2020, with early ado ption 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 from the incurred loss approach used today. The CE CL 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 r ecognition of credit reserves. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the n ew 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 reserves. |
Divestitures
Divestitures | 9 Months Ended |
Sep. 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. The impact of the sales is reported within the investing section of the Consolida ted 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 | 9 Months Ended |
Sep. 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 September 30 , 2016 . Card Member l oans by segment and Other loans as of September 30 , 2016 and December 31, 2015 , consisted of: (Millions) 2016 2015 U.S. Consumer Services (a) $ 44,857 $ 43,495 International Consumer and Network Services 6,700 7,072 Global Commercial Services 9,061 8,006 Card Member loans 60,618 58,573 Less: Reserve for losses 1,114 1,028 Card Member loans, net $ 59,504 $ 57,545 Other loans, net (b) $ 1,157 $ 1,254 Includes approximately $ 24.8 billion and $ 23.6 billion of gross Card Member loans available to settle obligations o f a consolidated variable interest entity (VIE) as of September 30 , 2016 and December 31, 2015 , respectively. Other loans primarily represent merchant financing loans . Other loans are presented net of reserves for losses of $ 30 million and $ 20 million as of September 30 , 2016 and December 31, 2015 , respectively. Card Member a ccounts receivable by segment and Other receivables as of September 30 , 2016 and December 31 , 2015 consisted of : (Millions) 2016 2015 U.S. Consumer Services (a) $ 10,101 $ 11,807 International Consumer and Network Services 5,551 5,599 Global Commercial Services 29,606 26,727 Card Member receivables (b) 45,258 44,133 Less: Reserve for losses 437 462 Card Member receivables, net $ 44,821 $ 43,671 Other receivables, net (c) $ 2,510 $ 3,024 Includes $ 5.5 b illion and $ 6.6 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of September 30 , 2016 and December 31, 2015 , respectively. Includes approximately $ 12.9 billion and $ 11.9 billion of Card Member receivables outside the United States as of September 30 , 2016 and December 31, 2015 , respectively . Other receivables primarily represent amounts related to (i ) certain merchants for billed discount revenue, (i i ) GNS partner banks for items such as royalty and franchise fees, and ( iii) loyalty coalition partners for points issued, as well as program participation and servicing fees. Other receivables are presented net of r eserves for losses of $ 48 million and $ 43 mi llion as of September 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 September 30 , 2016 and December 31, 2015 : 2016 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Consumer Services $ 44,367 $ 149 $ 105 $ 236 $ 44,857 International Consumer and Network Services 6,589 34 25 52 6,700 Global Commercial Services Global Small Business Services 8,918 29 20 46 9,013 Global Corporate Payments (a) (b) (b) (b) 1 48 Card Member Receivables: U.S. Consumer Services $ 9,963 $ 51 $ 28 $ 59 $ 10,101 International Consumer and Network Services 5,470 25 17 39 5,551 Global Commercial Services Global Small Business Services 13,605 77 44 83 13,809 Global Corporate Payments (a) (b) (b) (b) 124 15,797 2015 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past 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 loans and 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 loan and 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 i s not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. C redit Quality Indicators for Card Member Loans and Receivables The following table s prese nt the key credit quality indicators as of or for the nine months ended September 30 : 2016 2015 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Card Member Loans: U.S. Consumer Services 1.5 % 1.8 % 1.1 % 1.4 % 1.6 % 1.0 % International Consumer and Network Services 2.0 % 2.5 % 1.7 % 2.0 % 2.4 % 1.6 % Global Small Business Services 1.4 % 1.7 % 1.1 % 1.3 % 1.5 % 1.0 % Card Member Receivables: U.S. Consumer Services 1.4 % 1.6 % 1.4 % 1.6 % 1.8 % 1.6 % International Consumer and Network Services 2.1 % 2.3 % 1.5 % 2.1 % 2.3 % 1.6 % Global Small Business Services 1.6 % 1.8 % 1.5 % 1.9 % 2.2 % 1.6 % 2016 2015 Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Card Member Receivables: Global Corporate Payments 0.09 % 0.8 % 0.09 % 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 Card Member loans and receivables are individual larger balance or homogeneous pools of smal ler 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 in cluded in one 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 September 30 , 2016 and December 31, 2015 ; therefore, the segment’s receivables are not included in the following tables . As of September 30, 2016 Accounts Classified as a TDR (c) 2016 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: U.S. Consumer Services $ 156 $ 133 168 $ 124 $ 581 $ 532 $ 50 International Consumer and Network Services 52 ― ― ― 52 51 ― Global Commercial Services 27 29 27 25 108 100 10 Card Member Receivables: U.S. Consumer Services ― ― 9 5 14 14 6 Global Commercial Services ― ― 24 8 32 32 18 Total $ 235 $ 162 228 $ 162 $ 787 $ 729 $ 84 As of December 31, 2015 Accounts Classified as a TDR (c) 2015 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance 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 Card Member 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 $ 14 million and $ 18 milli on that are non-accruals as of September 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 $123 million and $84 million of Card Member accounts that have successfully completed a modification program and $ 39 million and $29 million of Card M ember accounts that were not in compliance with the terms of the modification programs as of September 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 nine months ended September 30 : Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 (Millions) Average Balance Interest Income Recognized Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 587 $ 14 $ 555 $ 38 International Consumer and Network Services 53 4 52 12 Global Commercial Services 111 4 102 10 Card Member Receivables: U.S. Consumer Services 13 ― 13 ― Global Commercial Services 29 ― 24 ― Total $ 793 $ 22 $ 746 $ 60 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (Millions) Average Balance Interest Income Recognized Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 585 $ 13 $ 580 $ 34 International Consumer and Network Services 53 3 55 10 Global Commercial Services 108 3 105 9 Card Member Receivables: U.S. Consumer Services 11 ― 14 ― Global Commercial Services 17 ― 21 ― Total $ 774 $ 19 $ 775 $ 53 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 nine months ended September 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 Nine Months Ended September 30, 2016 September 30, 2016 Number of Accounts Outstanding Balances (a) Average Interest Rate Reduction Average Payment Term Extension Number of Accounts Outstanding Balances (a) Average Interest Rate Reduction Average Payment Term Extension (in thousands) ($ in millions) (% Points) (# of Months) (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 8 $ 56 9 (b) 23 $ 163 10 (b) Card Member Receivables 2 29 (c) 19 7 94 (c) 17 Total 10 $ 85 30 $ 257 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Number of Accounts Outstanding Balances (a) Average Interest Rate Reduction Average Payment Term Extension Number of Accounts Outstanding Balances (a) Average Interest Rate Reduction Average Payment Term Extension (in thousands) ($ in millions) (% Points) (# of Months) (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 10 $ 69 9 (b) 31 $ 218 10 (b) Card Member Receivables 3 37 (c) 12 9 111 (c) 12 Total 13 $ 106 40 $ 329 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, in the three and nine months ended September 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 loan s and receivables. Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Number of Accounts Aggregated Outstanding Balances Upon Default (a) Number of Accounts Aggregated Outstanding Balances Upon Default (a) (in thousands) ($ in millions) (in thousands) ($ in millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 3 $ 12 5 $ 30 Card Member Receivables 1 1 3 3 Total 4 $ 13 8 $ 33 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Number of Accounts Aggregated Outstanding Balances Upon Default (a) Number of Accounts Aggregated Outstanding Balances Upon Default (a) (in thousands) ($ in millions) (in thousands) ($ in millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 1 $ 14 6 $ 39 Card Member Receivables 1 1 3 3 Total 2 $ 15 9 $ 42 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 | 9 Months Ended |
Sep. 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 September 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 nine months ended September 30 : (Millions) 2016 2015 Balance, January 1 $ 1,028 $ 1,201 Provisions (a) 831 829 Net write-offs Principal (b) (687) (733) Interest and fees (b) (128) (122) Other (c) 70 (11) Balance, September 30 $ 1,114 $ 1,164 Provisions for principal, interest and fee reserve components. Consists of principal write-offs, less recoveries of $ 280 million and $ 320 million , including net write-offs from TDRs of $ 24 million and $ 30 million , for the nine months ended September 30 , 2016 and 2015 , respectively. Recoveries of interest and fees were de minimis. Includes foreign currency translation adjustments of $ (3) million and $ (18) million and other adjustment s of $ 6 million and $ 7 million for t he nine months ended September 30 , 2016 and 2015 , respectively. The nine months ended September 30, 2016 also includes reserves of $ 6 7 million ass ociated with $2 6 5 million of retained Card Member loans reclassified from HFS to held for investment during the first half of the year. 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 September 30 , 2016 and December 31, 2015 : (Millions) 2016 2015 Card Member loans evaluated individually for impairment (a) $ 344 $ 279 Related reserves (a) $ 60 $ 53 Card Member loans evaluated collectively for impairment (b) $ 60,274 $ 58,294 Related reserves (b) $ 1,054 $ 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 nine months ended September 30: (Millions) 2016 2015 Balance, January 1 $ 462 $ 465 Provisions (a) 496 542 Net write-offs (b) (518) (544) Other (c) (3) (22) Balance, September 30 $ 437 $ 441 P rovisions for principal and fee reserve components. Consists of principal and fee components, less recoveries of $ 301 million and $ 302 million, including net write-offs from TDRs of $ 16 million and $ 49 million, for the nine months ended September 30 , 2016 and 2015 , respectively. Includes foreign currency translation adjustments of nil and $ (13) million and other adjustments of $ (3) million and $ (9) million for the nine months ended September 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 September 30 , 2016 and December 31, 2015 : (Millions) 2016 2015 Card Member receivables evaluated individually for impairment (a) $ 46 $ 33 Related reserves (a) $ 24 $ 20 Card Member receivables evaluated collectively for impairment $ 45,212 $ 44,100 Related reserves (b) $ 413 $ 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 | 9 Months Ended |
Sep. 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 and losses recorded in Accumulated Other Comprehensive Loss (AOCI) , net of income taxes . Realized gains and losses are recognized upon disposition of securities on a trade-date basis i n the Consolidated Statements of Income using the specific identification method. The following is a summary o f investment securities as of September 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 $ 2,255 $ 50 $ ― $ 2,305 $ 2,813 $ 85 $ (5) $ 2,893 U.S. Government agency obligations 12 ― ― 12 2 ― ― 2 U.S. Government treasury obligations 529 12 ― 541 406 4 (1) 409 Corporate debt securities 20 1 ― 21 29 1 ― 30 Mortgage-backed securities (a) 103 5 ― 108 117 4 ― 121 Equity securities 1 ― ― 1 1 ― ― 1 Foreign government bonds and obligations 682 10 ― 692 250 6 (1) 255 Other (b) 50 ― (2) 48 50 ― (2) 48 Total $ 3,652 $ 78 $ (2) $ 3,728 $ 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 September 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 September 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% ― $ ― $ ― 6 $ 33 $ (1) 6 $ 33 $ (1) Total as of September 30, 2016 ― $ ― $ ― 6 $ 33 $ (1) 6 $ 33 $ (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 September 30, 2016 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 788 $ 789 Due after 1 year but within 5 years 347 352 Due after 5 years but within 10 years 399 418 Due after 10 years 2,067 2,120 Total $ 3,601 $ 3,679 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 | 9 Months Ended |
Sep. 30, 2016 | |
Asset Securitizations [Abstract] | |
Asset Securitizations | 6 . Asset Securitizations The Company periodically securitizes Card Member loans and receivables arising from its card business es, including, prior to the sales discussed in Note 2, 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 Credit Account M aster Trust (the Lending Trust) and the American Express Issuance Trust II (the Charge Trust, collectively the Trusts) as of September 30 , 2016 and December 31, 2015 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2016 2015 Lending Trust $ 611 $ 153 Charge Trust 1 2 Total $ 612 $ 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 September 30 , 2016 , TRS’ direct and indirect ownership of variable interests was $ 13.3 billion for the Lending Trust and $ 2.0 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 Tru st 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 Lending Trust and the Charge Trust agreements, the occurrence of certain trigge ring 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 nine months ended September 30 , 2016 and the year ended December 31, 2015 , no such triggering events occurred. |
Customer Deposits
Customer Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Deposit Liabilities Disclosures [Abstract] | |
Customer Deposits | 7. Customer Deposits As of September 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 $ 52,767 $ 54,102 Non-interest bearing (includes Card Member credit balances of: 2016, $297 million; 2015, $389 million) 333 478 Non-U.S.: Interest bearing 88 82 Non-interest bearing (includes Card Member credit balances of: 2016, $297 million; 2015, $323 million) 312 335 Total customer deposits $ 53,500 $ 54,997 C ustomer deposits by deposit type as of September 30 , 2016 and December 31, 2015 were as follows: (Millions) 2016 2015 U.S. retail deposits: Savings accounts – Direct $ 30,672 $ 29,023 Certificates of deposit: Direct 290 281 Third-party (brokered) 12,879 13,856 Sweep accounts – Third-party (brokered) 8,926 10,942 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 139 183 Card Member credit balances ― U.S. and non-U.S. 594 712 Total customer deposits $ 53,500 $ 54,997 The scheduled maturities of certificates of deposit as of September 30 , 2016 were as follows: (Millions) U.S. Non-U.S. Total 2016 $ 1,416 $ 2 $ 1,418 2017 3,662 8 3,670 2018 3,203 ― 3,203 2019 2,336 ― 2,336 2020 2,518 ― 2,518 After 5 years 34 ― 34 Total $ 13,169 $ 10 $ 13,179 As of September 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. $ 116 $ 105 Non-U.S. 1 1 Total $ 117 $ 106 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 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’ 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, co mmon 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 the damages claimed by the plaintiff or class, many see k 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 pr ogressed 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 Com pany is able to estimate an amount of loss or a range of possible loss . 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 l oss 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 range of possible losses, as applicable . 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 $ 190 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 | 9 Months Ended |
Sep. 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 cre dit risk-related event . Based on its assessment of the credit risk of the Company’s derivative counterpa rties as of September 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 September 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 $ 330 $ 236 $ ― $ 9 Foreign exchange contracts - Net investment hedges 189 191 92 57 Total derivatives designated as hedging instruments 519 427 92 66 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (a) 201 117 149 135 Total derivatives, gross 720 544 241 201 Less: Cash collateral netting on interest rate contracts (b) (256) (155) ― ― Derivative asset and derivative liability netting (c) (99) (107) (99) (107) Total derivatives, net (d) $ 365 $ 282 $ 142 $ 94 Includes foreign currency derivatives embedded in certain operating agreements. Represen ts the offsetting of derivatives and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative 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 $24 million as of September 30, 2016 , none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $341 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 $ 144 million and $ 149 million as of September 30 , 2016 and December 31, 2015 , respectively , as initial margin on its centrally cleared intere st 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 assets and net derivative liabilities are presented within O ther assets and O ther liabilities , respectively, on the Consolidated Balance Sheets. A majority of the Company’s derivative assets and liabilities as of September 30 , 2016 and December 31, 2015 are subject to master 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 expo sed 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 $ 17.0 billion and $ 18.8 billion of its fixed-rate debt to floating-rate debt using interest rate swaps as of September 30 , 2016 and December 31, 2015 , respectively . The following table summarizes the gains (losses) recognized in Other expenses associated with the Company’s fair value hedges for the three and nine months ended September 30 : Three Months Ended September 30, Nine Months Ended September 30, (Millions) 2016 2015 2016 2015 Interest rate derivative contracts $ (123) $ 108 $ 103 $ 82 Hedged items 134 (114) (90) (85) Net hedge ineffectiveness $ 11 $ (6) $ 13 $ (3) The Company also recognized a net reduction in inter est expense on long-term debt of $ 55 million and $ 73 million for the three months ended September 30 , 2016 and 2015 , respectively, and $ 173 million and $ 214 million for the nine months ended September 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 ef fective 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 a loss of $ 18 million and a gain of $ 384 million for the three months ended September 30 , 2016 and 2015 , respectively, and gains of $ 25 million and $ 545 million for the nine months ended September 30 , 2016 and 2015 , respectively, with a ny ineffective portion recognized in Other expenses during the period of change . Specifically, the net hedge ineffectiveness recognized was nil and a gain of $1 million for the nine months ended September 30, 2016 and 2015, respectively. Other amounts related to foreign exchange contracts reclassified from AOCI into Other expenses incl uded a gain of $5 million and nil for the nine months ended September 30, 2016 and 2015, respectively. There were no amounts related to foreign exchange contracts reclassified from AOCI into Other expenses during the three months ended September 30, 2016 a nd 2015. 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 losses of $ 4 million and $ 3 million for the three months ended September 30 , 2016 and 2015 , respectively, and a net loss of $ 12 million and a net gain of $ 102 million for the nine months ended September 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 Qu arterly Report on Form 10-Q for the period ended September 30, 2015, gains of $19 million and $15 million for the three and nine months ended September 30, 2015 , respectively . These amounts should hav e been disclosed as gains of $8 million and $389 million, respectively, which are the amou nts used to calculate the above-referenced net loss of $3 million and net gain of $102 million . These changes to the previously disclosed amounts have no impact on the Consolidated Statements of Income, Balance She ets or Cash Flows. The changes in the fair value of an embedded derivative resulted in a gain of $1 million and a loss of $ 4 million for the three months ended September 30 , 2016 and 2015 , respectively, and a gain of $ 7 million and a loss of $ 2 million for the nine months ended September 30 , 2016 and 2015 , respectively, and are recognized in Card Member services and other expense. |
Fair Values
Fair Values | 9 Months Ended |
Sep. 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 September 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 and other $ 49 $ 1 $ 48 $ ― $ 50 $ 1 $ 49 $ ― Debt securities 3,679 541 3,138 ― 3,709 409 3,300 ― Derivatives (a) 720 ― 720 ― 544 ― 544 ― Total assets 4,448 542 3,906 ― 4,303 410 3,893 ― Liabilities: Derivatives (a) 241 ― 241 ― 201 ― 201 ― Total liabilities $ 241 $ ― $ 241 $ ― $ 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 September 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 September 30 , 2016 and December 31, 2015 , and require management ’s 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 amoun ts 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 (a) $ 27 $ 27 $ 25 $ 2 $ ― Other financial assets (b) 48 48 ― 48 ― Financial assets carried at other than fair value Loans, net (c) 61 61 ― ― 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) 13 13 ― 13 ― Long-term debt (c) $ 45 $ 46 $ ― $ 46 $ ― 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 (a) $ 23 $ 23 $ 22 $ 1 $ ― 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 (c) 59 60 ― ― 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 (c) $ 48 $ 49 $ ― $ 49 $ ― Level 2 amounts reflect time deposits and short-term investments. Includes Card Member receivables ( including fair values of Card Member receivables of $ 5.5 billion and $ 6.7 billion held by a consolidated VIE as of September 30 , 2016 and December 31, 2015 , respectively), Other receivables, restricted cash and other miscellaneous assets. Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $ 24.7 billion and $ 23.5 billi on as of September 30 , 2016 and December 31, 2015 , respectively, and the fair values of long-term debt were $ 14.8 billion and $ 13.6 billion as of September 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 their initial recognition is applicable if determined to be impaired. During the nine months ended September 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 Company 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 | 9 Months Ended |
Sep. 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 September 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 $ 42 $ 42 $ 41 $ 49 Other (c) 6 6 49 37 Total $ 48 $ 48 $ 90 $ 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 the 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 | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Changes In Accumulated Other Comprehensive (Loss) Income | 12 . Changes In Accumulated Other Comprehensive Income 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 nine months ended September 30 , 2016 and 2015 were as follows: Three Months Ended September 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 June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) Net unrealized losses (14) ― ― (14) Decrease due to amounts reclassified into earnings (1) ― ― (1) Net translation gain of investments in foreign operations ― 29 ― 29 Net losses related to hedges of investments in foreign operations ― (18) ― (18) Pension and other postretirement benefit gains ― ― 7 7 Net change in accumulated other comprehensive loss (15) 11 7 3 Balances as of September 30, 2016 $ 50 $ (2,159) $ (509) $ (2,618) Nine Months Ended September 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 losses (5) ― ― (5) Decrease due to amounts reclassified into earnings (3) ― ― (3) Net translation loss of investments in foreign operations ― (140) ― (140) Net gains related to hedges of investments in foreign operations ― 25 ― 25 Pension and other postretirement benefit gains ― ― 39 39 Net change in accumulated other comprehensive loss (8) (115) 39 (84) Balances as of September 30, 2016 $ 50 $ (2,159) $ (509) $ (2,618) Three Months Ended September 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 June 30, 2015 $ 76 $ (1,743) $ (487) $ (2,154) Net unrealized losses (6) ― ― (6) Decrease due to amounts reclassified into earnings (1) ― ― (1) Net translation loss of investments in foreign operations ― (604) ― (604) Net gains related to hedges of investments in foreign operations ― 384 ― 384 Pension and other postretirement benefit gains ― ― 7 7 Net change in accumulated other comprehensive loss (7) (220) 7 (220) Balances as of September 30, 2015 $ 69 $ (1,963) $ (480) $ (2,374) Nine Months Ended September 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 losses (26) ― ― (26) Decrease due to amounts reclassified into earnings (1) (1) ― (2) Net translation loss of investments in foreign operations ― (1,009) ― (1,009) Net gains related to hedges of investments in foreign operations ― 546 ― 546 Pension and other postretirement benefit gains ― ― 36 36 Net change in accumulated other comprehensive loss (27) (464) 36 (455) Balances as of September 30, 2015 $ 69 $ (1,963) $ (480) $ (2,374) 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 Nine Months Ended September 30, September 30, Amount Amount Description ( Millions ) Income Statement Line Item 2016 2015 2016 2015 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ 1 $ 1 $ 5 $ 1 Related income tax expense Income tax provision ― ― (2) ― Reclassification to net income related to available-for-sale securities 1 1 3 1 Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related net investments hedges Other expenses ― ― ― 1 Related income tax benefit Income tax provision ― ― ― ― Reclassification to net income related to foreign currency translation adjustments ― ― ― 1 Total $ 1 $ 1 $ 3 $ 2 |
Non-Interest Revenue and Expens
Non-Interest Revenue and Expense Detail | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, (Millions) 2016 2015 2016 2015 Foreign currency conversion fee revenue $ 207 $ 213 $ 610 $ 646 Delinquency fees 183 197 575 586 Loyalty coalition-related fees 106 100 304 279 Travel commissions and fees 89 87 256 271 Service fees 71 97 228 279 Other (a) 38 33 103 101 Total Other fees and commissions $ 694 $ 727 $ 2,076 $ 2,162 Other primarily includes revenues from fees related to Membership Rewards programs. The following is a detail of O ther revenues : Three Months Ended Nine Months Ended September 30, September 30, (Millions) 2016 2015 2016 2015 Global Network Services partner revenues $ 156 $ 156 $ 498 $ 474 Gross realized gains on sale of investment securities 1 1 5 1 Other (a) 326 347 1,011 1,018 Total Other revenues $ 483 $ 504 $ 1,514 $ 1,493 Other includes revenues arising from net revenue earned on cross-border Card Member spending, insurance premiums earned from Card Member travel and other insurance programs, merchant-related fees, 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 Nine Months Ended September 30, September 30, (Millions) 2016 2015 2016 2015 Professional services $ 630 $ 687 $ 1,862 $ 1,966 Occupancy and equipment 429 523 1,332 1,372 Communications 68 84 231 257 Card and merchant-related fraud losses 67 64 182 247 Gain on sale of HFS portfolios (a) ― ― (1,218) ― Other (b) 304 277 999 727 Total Other expenses $ 1,498 $ 1,635 $ 3,388 $ 4,569 Refer to Note 2 for additional information. Other expense primarily inclu des general operating expenses, gains and losses on sale s of assets or businesses not classified as discontinued operations, regulatory and litigation -related costs , certain Card Member reimbursements, insurance costs , certain loyalty coalition-related expenses , and foreign currency-related gains and losses (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in the nine mont hs ended September 30 , 2015). In addition, the nine months ended September 30 , 2016 includes a valuation allowance adjustment associated with loans and receivables HFS. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The effective tax rate was 34.2 percent and 34.7 percent for the three months ended September 30 , 2016 and 2015 , respectively, and 33.9 percent and 34.2 percent for the nine months ended September 30 , 2016 and 2015 , respectively. The changes in tax rates 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 Internal Revenue Service (IRS) and tax authorities in other countries and states in which the Company has significant business operations. The tax years under examination and open for examination vary by juris diction. The IRS has completed its field examination of the Company’s federal tax returns for years through 2007 ; however, refund claims for certain years continue to be reviewed by the IRS. In addition, the Company is currently under examination by the IR S for the years 2008 through 2014 . The Company believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $ 527 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 $ 527 million of unrecognized tax benefits, approximately $ 310 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) | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, (Millions, except per share amounts) 2016 2015 2016 2015 Numerator: Basic and diluted: Net income $ 1,142 $ 1,266 $ 4,583 $ 4,264 Preferred dividends (21) (22) (61) (42) Net income available to common shareholders 1,121 1,244 4,522 4,222 Earnings allocated to participating share awards (a) (9) (10) (37) (32) Net income attributable to common shareholders $ 1,112 $ 1,234 $ 4,485 $ 4,190 Denominator: (a) Basic: Weighted-average common stock 920 994 940 1,007 Add: Weighted-average stock options (b) 3 3 3 4 Diluted 923 997 943 1,011 Basic EPS $ 1.21 $ 1.24 $ 4.77 $ 4.16 Diluted EPS $ 1.20 $ 1.24 $ 4.76 $ 4.15 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 3.2 million and 0.6 million of options for the three months ended September 30 , 2016 and 2015 , respectively, and 2.2 million and 0.5 million of options for the nine months ended September 30 , 2016 and 2015 , respectively, because inclusion of the options would have been anti-dilutive. |
Reportable Operating Segment
Reportable Operating Segment | 9 Months Ended |
Sep. 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 September 30, 2016 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 1,849 $ 1,205 $ 2,240 $ 1,044 $ 102 $ 6,440 Interest income 1,178 231 282 ― 73 1,764 Interest expense 125 55 98 (60) 212 430 Total revenues net of interest expense 2,902 1,381 2,424 1,104 (37) 7,774 Net income (loss) $ 401 $ 155 $ 466 $ 359 $ (239) $ 1,142 Total assets (billions) $ 79 $ 34 $ 47 $ 23 $ (30) $ 153 Total equity (billions) $ 8 $ 3 $ 7 $ 2 $ 1 $ 21 Nine Months Ended September 30, 2016 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 5,947 $ 3,587 $ 6,710 $ 3,172 $ 318 $ 19,734 Interest income 3,847 692 913 1 201 5,654 Interest expense 404 167 297 (180) 603 1,291 Total revenues net of interest expense 9,390 4,112 7,326 3,353 (84) 24,097 Net income (loss) $ 2,162 $ 571 $ 1,527 $ 1,089 $ (766) $ 4,583 Total assets (billions) $ 79 $ 34 $ 47 $ 23 $ (30) $ 153 Total equity (billions) $ 8 $ 3 $ 7 $ 2 $ 1 $ 21 Three Months Ended September 30, 2015 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 2,117 $ 1,141 $ 2,217 $ 1,123 $ 90 $ 6,688 Interest income 1,324 228 297 ― 55 1,904 Interest expense 123 55 91 (46) 176 399 Total revenues net of interest expense 3,318 1,314 2,423 1,169 (31) 8,193 Net income (loss) $ 542 $ 154 $ 468 $ 397 $ (295) $ 1,266 Total assets (billions) $ 84 $ 35 $ 46 $ 23 $ (34) $ 154 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 Nine Months Ended September 30, 2015 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 6,324 $ 3,449 $ 6,677 $ 3,323 $ 279 $ 20,052 Interest income 3,849 710 864 1 174 5,598 Interest expense 358 176 271 (154) 572 1,223 Total revenues net of interest expense 9,815 3,983 7,270 3,478 (119) 24,427 Net income (loss) $ 1,814 $ 544 $ 1,535 $ 1,135 $ (764) $ 4,264 Total assets (billions) $ 84 $ 35 $ 46 $ 23 $ (34) $ 154 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Policy (Text Block) [Abstract] | |
Basis of Presentation | 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. |
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 and losses recorded in Accumulated Other Comprehensive Loss (AOCI) , net of income taxes . Realized gains and losses are recognized upon disposition of securities on a trade-date basis i n the Consolidated Statements of Income 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 l oss 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 range 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) | 9 Months Ended |
Sep. 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 September 30 , 2016 and December 31 , 2015 consisted of : (Millions) 2016 2015 U.S. Consumer Services (a) $ 10,101 $ 11,807 International Consumer and Network Services 5,551 5,599 Global Commercial Services 29,606 26,727 Card Member receivables (b) 45,258 44,133 Less: Reserve for losses 437 462 Card Member receivables, net $ 44,821 $ 43,671 Other receivables, net (c) $ 2,510 $ 3,024 Includes $ 5.5 b illion and $ 6.6 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of September 30 , 2016 and December 31, 2015 , respectively. Includes approximately $ 12.9 billion and $ 11.9 billion of Card Member receivables outside the United States as of September 30 , 2016 and December 31, 2015 , respectively . Other receivables primarily represent amounts related to (i ) certain merchants for billed discount revenue, (i i ) GNS partner banks for items such as royalty and franchise fees, and ( iii) loyalty coalition partners for points issued, as well as program participation and servicing fees. Other receivables are presented net of r eserves for losses of $ 48 million and $ 43 mi llion as of September 30 , 2016 and December 31, 2015 , respectively. |
Card Member loans segment detail | Card Member l oans by segment and Other loans as of September 30 , 2016 and December 31, 2015 , consisted of: (Millions) 2016 2015 U.S. Consumer Services (a) $ 44,857 $ 43,495 International Consumer and Network Services 6,700 7,072 Global Commercial Services 9,061 8,006 Card Member loans 60,618 58,573 Less: Reserve for losses 1,114 1,028 Card Member loans, net $ 59,504 $ 57,545 Other loans, net (b) $ 1,157 $ 1,254 Includes approximately $ 24.8 billion and $ 23.6 billion of gross Card Member loans available to settle obligations o f a consolidated variable interest entity (VIE) as of September 30 , 2016 and December 31, 2015 , respectively. Other loans primarily represent merchant financing loans . Other loans are presented net of reserves for losses of $ 30 million and $ 20 million as of September 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 September 30 , 2016 and December 31, 2015 : 2016 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Consumer Services $ 44,367 $ 149 $ 105 $ 236 $ 44,857 International Consumer and Network Services 6,589 34 25 52 6,700 Global Commercial Services Global Small Business Services 8,918 29 20 46 9,013 Global Corporate Payments (a) (b) (b) (b) 1 48 Card Member Receivables: U.S. Consumer Services $ 9,963 $ 51 $ 28 $ 59 $ 10,101 International Consumer and Network Services 5,470 25 17 39 5,551 Global Commercial Services Global Small Business Services 13,605 77 44 83 13,809 Global Corporate Payments (a) (b) (b) (b) 124 15,797 2015 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past 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 loans and 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 loan and 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 i s not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. |
Credit quality indicators for loans and receivables | The following table s prese nt the key credit quality indicators as of or for the nine months ended September 30 : 2016 2015 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Card Member Loans: U.S. Consumer Services 1.5 % 1.8 % 1.1 % 1.4 % 1.6 % 1.0 % International Consumer and Network Services 2.0 % 2.5 % 1.7 % 2.0 % 2.4 % 1.6 % Global Small Business Services 1.4 % 1.7 % 1.1 % 1.3 % 1.5 % 1.0 % Card Member Receivables: U.S. Consumer Services 1.4 % 1.6 % 1.4 % 1.6 % 1.8 % 1.6 % International Consumer and Network Services 2.1 % 2.3 % 1.5 % 2.1 % 2.3 % 1.6 % Global Small Business Services 1.6 % 1.8 % 1.5 % 1.9 % 2.2 % 1.6 % 2016 2015 Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Card Member Receivables: Global Corporate Payments 0.09 % 0.8 % 0.09 % 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 September 30 , 2016 and December 31, 2015 ; therefore, the segment’s receivables are not included in the following tables . As of September 30, 2016 Accounts Classified as a TDR (c) 2016 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: U.S. Consumer Services $ 156 $ 133 168 $ 124 $ 581 $ 532 $ 50 International Consumer and Network Services 52 ― ― ― 52 51 ― Global Commercial Services 27 29 27 25 108 100 10 Card Member Receivables: U.S. Consumer Services ― ― 9 5 14 14 6 Global Commercial Services ― ― 24 8 32 32 18 Total $ 235 $ 162 228 $ 162 $ 787 $ 729 $ 84 As of December 31, 2015 Accounts Classified as a TDR (c) 2015 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance 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 Card Member 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 $ 14 million and $ 18 milli on that are non-accruals as of September 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 $123 million and $84 million of Card Member accounts that have successfully completed a modification program and $ 39 million and $29 million of Card M ember accounts that were not in compliance with the terms of the modification programs as of September 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 nine months ended September 30 : Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 (Millions) Average Balance Interest Income Recognized Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 587 $ 14 $ 555 $ 38 International Consumer and Network Services 53 4 52 12 Global Commercial Services 111 4 102 10 Card Member Receivables: U.S. Consumer Services 13 ― 13 ― Global Commercial Services 29 ― 24 ― Total $ 793 $ 22 $ 746 $ 60 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (Millions) Average Balance Interest Income Recognized Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 585 $ 13 $ 580 $ 34 International Consumer and Network Services 53 3 55 10 Global Commercial Services 108 3 105 9 Card Member Receivables: U.S. Consumer Services 11 ― 14 ― Global Commercial Services 17 ― 21 ― Total $ 774 $ 19 $ 775 $ 53 |
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 nine months ended September 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 Nine Months Ended September 30, 2016 September 30, 2016 Number of Accounts Outstanding Balances (a) Average Interest Rate Reduction Average Payment Term Extension Number of Accounts Outstanding Balances (a) Average Interest Rate Reduction Average Payment Term Extension (in thousands) ($ in millions) (% Points) (# of Months) (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 8 $ 56 9 (b) 23 $ 163 10 (b) Card Member Receivables 2 29 (c) 19 7 94 (c) 17 Total 10 $ 85 30 $ 257 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Number of Accounts Outstanding Balances (a) Average Interest Rate Reduction Average Payment Term Extension Number of Accounts Outstanding Balances (a) Average Interest Rate Reduction Average Payment Term Extension (in thousands) ($ in millions) (% Points) (# of Months) (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 10 $ 69 9 (b) 31 $ 218 10 (b) Card Member Receivables 3 37 (c) 12 9 111 (c) 12 Total 13 $ 106 40 $ 329 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, in the three and nine months ended September 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 loan s and receivables. Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Number of Accounts Aggregated Outstanding Balances Upon Default (a) Number of Accounts Aggregated Outstanding Balances Upon Default (a) (in thousands) ($ in millions) (in thousands) ($ in millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 3 $ 12 5 $ 30 Card Member Receivables 1 1 3 3 Total 4 $ 13 8 $ 33 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Number of Accounts Aggregated Outstanding Balances Upon Default (a) Number of Accounts Aggregated Outstanding Balances Upon Default (a) (in thousands) ($ in millions) (in thousands) ($ in millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 1 $ 14 6 $ 39 Card Member Receivables 1 1 3 3 Total 2 $ 15 9 $ 42 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) | 9 Months Ended |
Sep. 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 nine months ended September 30: (Millions) 2016 2015 Balance, January 1 $ 462 $ 465 Provisions (a) 496 542 Net write-offs (b) (518) (544) Other (c) (3) (22) Balance, September 30 $ 437 $ 441 P rovisions for principal and fee reserve components. Consists of principal and fee components, less recoveries of $ 301 million and $ 302 million, including net write-offs from TDRs of $ 16 million and $ 49 million, for the nine months ended September 30 , 2016 and 2015 , respectively. Includes foreign currency translation adjustments of nil and $ (13) million and other adjustments of $ (3) million and $ (9) million for the nine months ended September 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 September 30 , 2016 and December 31, 2015 : (Millions) 2016 2015 Card Member receivables evaluated individually for impairment (a) $ 46 $ 33 Related reserves (a) $ 24 $ 20 Card Member receivables evaluated collectively for impairment $ 45,212 $ 44,100 Related reserves (b) $ 413 $ 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 nine months ended September 30 : (Millions) 2016 2015 Balance, January 1 $ 1,028 $ 1,201 Provisions (a) 831 829 Net write-offs Principal (b) (687) (733) Interest and fees (b) (128) (122) Other (c) 70 (11) Balance, September 30 $ 1,114 $ 1,164 Provisions for principal, interest and fee reserve components. Consists of principal write-offs, less recoveries of $ 280 million and $ 320 million , including net write-offs from TDRs of $ 24 million and $ 30 million , for the nine months ended September 30 , 2016 and 2015 , respectively. Recoveries of interest and fees were de minimis. Includes foreign currency translation adjustments of $ (3) million and $ (18) million and other adjustment s of $ 6 million and $ 7 million for t he nine months ended September 30 , 2016 and 2015 , respectively. The nine months ended September 30, 2016 also includes reserves of $ 6 7 million ass ociated with $2 6 5 million of retained Card Member loans reclassified from HFS to held for investment during the first half of the year. |
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 September 30 , 2016 and December 31, 2015 : (Millions) 2016 2015 Card Member loans evaluated individually for impairment (a) $ 344 $ 279 Related reserves (a) $ 60 $ 53 Card Member loans evaluated collectively for impairment (b) $ 60,274 $ 58,294 Related reserves (b) $ 1,054 $ 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) | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities (Tables) [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary o f investment securities as of September 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 $ 2,255 $ 50 $ ― $ 2,305 $ 2,813 $ 85 $ (5) $ 2,893 U.S. Government agency obligations 12 ― ― 12 2 ― ― 2 U.S. Government treasury obligations 529 12 ― 541 406 4 (1) 409 Corporate debt securities 20 1 ― 21 29 1 ― 30 Mortgage-backed securities (a) 103 5 ― 108 117 4 ― 121 Equity securities 1 ― ― 1 1 ― ― 1 Foreign government bonds and obligations 682 10 ― 692 250 6 (1) 255 Other (b) 50 ― (2) 48 50 ― (2) 48 Total $ 3,652 $ 78 $ (2) $ 3,728 $ 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 September 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 September 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% ― $ ― $ ― 6 $ 33 $ (1) 6 $ 33 $ (1) Total as of September 30, 2016 ― $ ― $ ― 6 $ 33 $ (1) 6 $ 33 $ (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 September 30, 2016 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 788 $ 789 Due after 1 year but within 5 years 347 352 Due after 5 years but within 10 years 399 418 Due after 10 years 2,067 2,120 Total $ 3,601 $ 3,679 |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 9 Months Ended |
Sep. 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 Credit Account M aster Trust (the Lending Trust) and the American Express Issuance Trust II (the Charge Trust, collectively the Trusts) as of September 30 , 2016 and December 31, 2015 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2016 2015 Lending Trust $ 611 $ 153 Charge Trust 1 2 Total $ 612 $ 155 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Customer Deposits (Tables) [Abstract] | |
Deposits By Component Alternative | 7. Customer Deposits As of September 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 $ 52,767 $ 54,102 Non-interest bearing (includes Card Member credit balances of: 2016, $297 million; 2015, $389 million) 333 478 Non-U.S.: Interest bearing 88 82 Non-interest bearing (includes Card Member credit balances of: 2016, $297 million; 2015, $323 million) 312 335 Total customer deposits $ 53,500 $ 54,997 |
Deposits By Type | C ustomer deposits by deposit type as of September 30 , 2016 and December 31, 2015 were as follows: (Millions) 2016 2015 U.S. retail deposits: Savings accounts – Direct $ 30,672 $ 29,023 Certificates of deposit: Direct 290 281 Third-party (brokered) 12,879 13,856 Sweep accounts – Third-party (brokered) 8,926 10,942 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 139 183 Card Member credit balances ― U.S. and non-U.S. 594 712 Total customer deposits $ 53,500 $ 54,997 |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of September 30 , 2016 were as follows: (Millions) U.S. Non-U.S. Total 2016 $ 1,416 $ 2 $ 1,418 2017 3,662 8 3,670 2018 3,203 ― 3,203 2019 2,336 ― 2,336 2020 2,518 ― 2,518 After 5 years 34 ― 34 Total $ 13,169 $ 10 $ 13,179 |
Time Deposits $250,000 Or More | As of September 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. $ 116 $ 105 Non-U.S. 1 1 Total $ 117 $ 106 |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 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 September 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 $ 330 $ 236 $ ― $ 9 Foreign exchange contracts - Net investment hedges 189 191 92 57 Total derivatives designated as hedging instruments 519 427 92 66 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (a) 201 117 149 135 Total derivatives, gross 720 544 241 201 Less: Cash collateral netting on interest rate contracts (b) (256) (155) ― ― Derivative asset and derivative liability netting (c) (99) (107) (99) (107) Total derivatives, net (d) $ 365 $ 282 $ 142 $ 94 Includes foreign currency derivatives embedded in certain operating agreements. Represen ts the offsetting of derivatives and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative 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 $24 million as of September 30, 2016 , none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $341 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 $ 144 million and $ 149 million as of September 30 , 2016 and December 31, 2015 , respectively , as initial margin on its centrally cleared intere st 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 assets and net derivative liabilities are presented within O ther assets and O ther liabilities , respectively, on the Consolidated Balance Sheets. |
Effect of fair value hedges on results of operations | The following table summarizes the gains (losses) recognized in Other expenses associated with the Company’s fair value hedges for the three and nine months ended September 30 : Three Months Ended September 30, Nine Months Ended September 30, (Millions) 2016 2015 2016 2015 Interest rate derivative contracts $ (123) $ 108 $ 103 $ 82 Hedged items 134 (114) (90) (85) Net hedge ineffectiveness $ 11 $ (6) $ 13 $ (3) |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 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 September 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 and other $ 49 $ 1 $ 48 $ ― $ 50 $ 1 $ 49 $ ― Debt securities 3,679 541 3,138 ― 3,709 409 3,300 ― Derivatives (a) 720 ― 720 ― 544 ― 544 ― Total assets 4,448 542 3,906 ― 4,303 410 3,893 ― Liabilities: Derivatives (a) 241 ― 241 ― 201 ― 201 ― Total liabilities $ 241 $ ― $ 241 $ ― $ 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 September 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 September 30 , 2016 and December 31, 2015 , and require management ’s 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 amoun ts 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 (a) $ 27 $ 27 $ 25 $ 2 $ ― Other financial assets (b) 48 48 ― 48 ― Financial assets carried at other than fair value Loans, net (c) 61 61 ― ― 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) 13 13 ― 13 ― Long-term debt (c) $ 45 $ 46 $ ― $ 46 $ ― 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 (a) $ 23 $ 23 $ 22 $ 1 $ ― 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 (c) 59 60 ― ― 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 (c) $ 48 $ 49 $ ― $ 49 $ ― Level 2 amounts reflect time deposits and short-term investments. Includes Card Member receivables ( including fair values of Card Member receivables of $ 5.5 billion and $ 6.7 billion held by a consolidated VIE as of September 30 , 2016 and December 31, 2015 , respectively), Other receivables, restricted cash and other miscellaneous assets. Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $ 24.7 billion and $ 23.5 billi on as of September 30 , 2016 and December 31, 2015 , respectively, and the fair values of long-term debt were $ 14.8 billion and $ 13.6 billion as of September 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) | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees (Tables) [Abstract] | |
Information related to guarantees | The following table provides information related to such guarantees and indemnifications as of September 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 $ 42 $ 42 $ 41 $ 49 Other (c) 6 6 49 37 Total $ 48 $ 48 $ 90 $ 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 the 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) | 9 Months Ended |
Sep. 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 nine months ended September 30 , 2016 and 2015 were as follows: Three Months Ended September 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 June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) Net unrealized losses (14) ― ― (14) Decrease due to amounts reclassified into earnings (1) ― ― (1) Net translation gain of investments in foreign operations ― 29 ― 29 Net losses related to hedges of investments in foreign operations ― (18) ― (18) Pension and other postretirement benefit gains ― ― 7 7 Net change in accumulated other comprehensive loss (15) 11 7 3 Balances as of September 30, 2016 $ 50 $ (2,159) $ (509) $ (2,618) Nine Months Ended September 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 losses (5) ― ― (5) Decrease due to amounts reclassified into earnings (3) ― ― (3) Net translation loss of investments in foreign operations ― (140) ― (140) Net gains related to hedges of investments in foreign operations ― 25 ― 25 Pension and other postretirement benefit gains ― ― 39 39 Net change in accumulated other comprehensive loss (8) (115) 39 (84) Balances as of September 30, 2016 $ 50 $ (2,159) $ (509) $ (2,618) Three Months Ended September 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 June 30, 2015 $ 76 $ (1,743) $ (487) $ (2,154) Net unrealized losses (6) ― ― (6) Decrease due to amounts reclassified into earnings (1) ― ― (1) Net translation loss of investments in foreign operations ― (604) ― (604) Net gains related to hedges of investments in foreign operations ― 384 ― 384 Pension and other postretirement benefit gains ― ― 7 7 Net change in accumulated other comprehensive loss (7) (220) 7 (220) Balances as of September 30, 2015 $ 69 $ (1,963) $ (480) $ (2,374) Nine Months Ended September 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 losses (26) ― ― (26) Decrease due to amounts reclassified into earnings (1) (1) ― (2) Net translation loss of investments in foreign operations ― (1,009) ― (1,009) Net gains related to hedges of investments in foreign operations ― 546 ― 546 Pension and other postretirement benefit gains ― ― 36 36 Net change in accumulated other comprehensive loss (27) (464) 36 (455) Balances as of September 30, 2015 $ 69 $ (1,963) $ (480) $ (2,374) |
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 Nine Months Ended September 30, September 30, Amount Amount Description ( Millions ) Income Statement Line Item 2016 2015 2016 2015 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ 1 $ 1 $ 5 $ 1 Related income tax expense Income tax provision ― ― (2) ― Reclassification to net income related to available-for-sale securities 1 1 3 1 Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related net investments hedges Other expenses ― ― ― 1 Related income tax benefit Income tax provision ― ― ― ― Reclassification to net income related to foreign currency translation adjustments ― ― ― 1 Total $ 1 $ 1 $ 3 $ 2 |
Non-Interest Revenue and Expe36
Non-Interest Revenue and Expense Detail (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, (Millions) 2016 2015 2016 2015 Foreign currency conversion fee revenue $ 207 $ 213 $ 610 $ 646 Delinquency fees 183 197 575 586 Loyalty coalition-related fees 106 100 304 279 Travel commissions and fees 89 87 256 271 Service fees 71 97 228 279 Other (a) 38 33 103 101 Total Other fees and commissions $ 694 $ 727 $ 2,076 $ 2,162 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 Nine Months Ended September 30, September 30, (Millions) 2016 2015 2016 2015 Global Network Services partner revenues $ 156 $ 156 $ 498 $ 474 Gross realized gains on sale of investment securities 1 1 5 1 Other (a) 326 347 1,011 1,018 Total Other revenues $ 483 $ 504 $ 1,514 $ 1,493 Other includes revenues arising from net revenue earned on cross-border Card Member spending, insurance premiums earned from Card Member travel and other insurance programs, merchant-related fees, 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 Nine Months Ended September 30, September 30, (Millions) 2016 2015 2016 2015 Professional services $ 630 $ 687 $ 1,862 $ 1,966 Occupancy and equipment 429 523 1,332 1,372 Communications 68 84 231 257 Card and merchant-related fraud losses 67 64 182 247 Gain on sale of HFS portfolios (a) ― ― (1,218) ― Other (b) 304 277 999 727 Total Other expenses $ 1,498 $ 1,635 $ 3,388 $ 4,569 Refer to Note 2 for additional information. Other expense primarily inclu des general operating expenses, gains and losses on sale s of assets or businesses not classified as discontinued operations, regulatory and litigation -related costs , certain Card Member reimbursements, insurance costs , certain loyalty coalition-related expenses , and foreign currency-related gains and losses (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in the nine mont hs ended September 30 , 2015). In addition, the nine months ended September 30 , 2016 includes a valuation allowance adjustment associated with loans and receivables HFS. |
Earnings Per Common Share (EP37
Earnings Per Common Share (EPS) (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, (Millions, except per share amounts) 2016 2015 2016 2015 Numerator: Basic and diluted: Net income $ 1,142 $ 1,266 $ 4,583 $ 4,264 Preferred dividends (21) (22) (61) (42) Net income available to common shareholders 1,121 1,244 4,522 4,222 Earnings allocated to participating share awards (a) (9) (10) (37) (32) Net income attributable to common shareholders $ 1,112 $ 1,234 $ 4,485 $ 4,190 Denominator: (a) Basic: Weighted-average common stock 920 994 940 1,007 Add: Weighted-average stock options (b) 3 3 3 4 Diluted 923 997 943 1,011 Basic EPS $ 1.21 $ 1.24 $ 4.77 $ 4.16 Diluted EPS $ 1.20 $ 1.24 $ 4.76 $ 4.15 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 3.2 million and 0.6 million of options for the three months ended September 30 , 2016 and 2015 , respectively, and 2.2 million and 0.5 million of options for the nine months ended September 30 , 2016 and 2015 , respectively, because inclusion of the options would have been anti-dilutive. |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 9 Months Ended |
Sep. 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 September 30, 2016 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 1,849 $ 1,205 $ 2,240 $ 1,044 $ 102 $ 6,440 Interest income 1,178 231 282 ― 73 1,764 Interest expense 125 55 98 (60) 212 430 Total revenues net of interest expense 2,902 1,381 2,424 1,104 (37) 7,774 Net income (loss) $ 401 $ 155 $ 466 $ 359 $ (239) $ 1,142 Total assets (billions) $ 79 $ 34 $ 47 $ 23 $ (30) $ 153 Total equity (billions) $ 8 $ 3 $ 7 $ 2 $ 1 $ 21 Nine Months Ended September 30, 2016 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 5,947 $ 3,587 $ 6,710 $ 3,172 $ 318 $ 19,734 Interest income 3,847 692 913 1 201 5,654 Interest expense 404 167 297 (180) 603 1,291 Total revenues net of interest expense 9,390 4,112 7,326 3,353 (84) 24,097 Net income (loss) $ 2,162 $ 571 $ 1,527 $ 1,089 $ (766) $ 4,583 Total assets (billions) $ 79 $ 34 $ 47 $ 23 $ (30) $ 153 Total equity (billions) $ 8 $ 3 $ 7 $ 2 $ 1 $ 21 Three Months Ended September 30, 2015 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 2,117 $ 1,141 $ 2,217 $ 1,123 $ 90 $ 6,688 Interest income 1,324 228 297 ― 55 1,904 Interest expense 123 55 91 (46) 176 399 Total revenues net of interest expense 3,318 1,314 2,423 1,169 (31) 8,193 Net income (loss) $ 542 $ 154 $ 468 $ 397 $ (295) $ 1,266 Total assets (billions) $ 84 $ 35 $ 46 $ 23 $ (34) $ 154 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 Nine Months Ended September 30, 2015 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 6,324 $ 3,449 $ 6,677 $ 3,323 $ 279 $ 20,052 Interest income 3,849 710 864 1 174 5,598 Interest expense 358 176 271 (154) 572 1,223 Total revenues net of interest expense 9,815 3,983 7,270 3,478 (119) 24,427 Net income (loss) $ 1,814 $ 544 $ 1,535 $ 1,135 $ (764) $ 4,264 Total assets (billions) $ 84 $ 35 $ 46 $ 23 $ (34) $ 154 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Basis of Presentation (Details
Basis of Presentation (Details Textuals) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
PriorPeriodReclassificationAdjustment[Abstract] | |
PriorPeriodReclassification | $ 250 |
Business Events (Details Textua
Business Events (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Events (Details) [Abstract] | |||||
CardMember loans transferred from HFS to held for investment | $ 0 | ||||
CardMember receivables transferred from Held for Sales (HFS) to held for investment | 0 | ||||
Business Events (Line Items) | |||||
Gain on sale of held for sale (HFS) portfolio | 0 | $ 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 Receivable41
Loans and Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Loans segment information | ||||
Card Member loans, gross | $ 60,618 | $ 58,573 | ||
Less: Reserve for losses | 1,114 | 1,028 | $ 1,164 | $ 1,201 |
Card Member loans, net | 59,504 | 57,545 | ||
Other loans, net | 1,157 | 1,254 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 30 | 20 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 24,752 | 23,559 | ||
U S Consumer Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 44,857 | 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 | 24,800 | 23,600 | ||
International Consumer and Network Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 6,700 | 7,072 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | $ 9,061 | $ 8,006 |
Loans and Accounts Receivable42
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts receivable segment information | ||||
Card Member receivables | $ 45,258 | $ 44,133 | ||
Less: Reserve for losses | 437 | 462 | $ 441 | $ 465 |
Card Member receivables, net | 44,821 | 43,671 | ||
Other receivables, net | 2,510 | 3,024 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 48 | 43 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 5,485 | 6,649 | ||
Non United States [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 12,900 | 11,900 | ||
U S Consumer Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 10,101 | 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 | 5,500 | 6,600 | ||
International Consumer and Network Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 5,551 | 5,599 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 29,606 | $ 26,727 |
Loans and Accounts Receivable43
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions | Sep. 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 | $ 44,367 | $ 43,063 |
Total aging | 44,857 | 43,495 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 149 | 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 | 105 | 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 | 236 | 210 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 9,963 | 11,646 |
Total aging | 10,101 | 11,807 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 51 | 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 | 28 | 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 | 59 | 75 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 6,589 | 6,961 |
Total aging | 6,700 | 7,072 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 34 | 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 | 25 | 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 | 52 | 52 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 5,470 | 5,515 |
Total aging | 5,551 | 5,599 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 25 | 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 | 17 | 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 | 39 | 42 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 8,918 | 7,867 |
Total aging | 9,013 | 7,951 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 29 | 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 | 46 | 40 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 13,605 | 12,734 |
Total aging | 13,809 | 12,950 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 77 | 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 | 44 | 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 | 83 | 102 |
Global Corporate Payments [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 48 | 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 | 15,797 | 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 | $ 124 | $ 124 |
Loans and Accounts Receivable44
Loans and Accounts Receivable (Details 3) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 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 | 1.80% | 1.60% |
30 Days Past Due as a % of Total | 1.10% | 1.00% |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.40% | 1.60% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.60% | 1.80% |
30 Days Past Due as a % of Total | 1.40% | 1.60% |
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 | 2.50% | 2.40% |
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 | 2.10% | 2.10% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.30% | 2.30% |
30 Days Past Due as a % of Total | 1.50% | 1.60% |
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% | 0.09% |
90 days past billing as a percentage of receivables | 0.80% | 0.70% |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.40% | 1.30% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.70% | 1.50% |
30 Days Past Due as a % of Total | 1.10% | 1.00% |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.60% | 1.90% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.80% | 2.20% |
30 Days Past Due as a % of Total | 1.50% | 1.60% |
Loans and Accounts Receivable45
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $ 235 | $ 216 |
Non-accrual loans | 162 | 150 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 228 | 199 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 162 | 113 |
Total impaired loans and receivables | 787 | 678 |
Unpaid principal balance | 729 | 632 |
Related allowance for Troubled Debt Restructurings | 84 | 73 |
Accounts Receivable and Loans Textuals [Abstract] | ||
Total loans and receivables modified as a TDR, non-accrual | 14 | 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 | 123 | 84 |
Financing Receivable, Modifications, Out of Program - not compliant, Recorded Investment | 39 | 29 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 156 | 140 |
Non-accrual loans | 133 | 124 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 168 | 149 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 124 | 89 |
Total impaired loans and receivables | 581 | 502 |
Unpaid principal balance | 532 | 463 |
Related allowance for Troubled Debt Restructurings | 50 | 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 | 9 | 11 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 5 | 3 |
Total impaired loans and receivables | 14 | 14 |
Unpaid principal balance | 14 | 14 |
Related allowance for Troubled Debt Restructurings | 6 | 8 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 52 | 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 | 52 | 52 |
Unpaid principal balance | 51 | 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 | 27 | 24 |
Non-accrual loans | 29 | 26 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 27 | 23 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 25 | 18 |
Total impaired loans and receivables | 108 | 91 |
Unpaid principal balance | 100 | 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 | 24 | 16 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 8 | 3 |
Total impaired loans and receivables | 32 | 19 |
Unpaid principal balance | 32 | 19 |
Related allowance for Troubled Debt Restructurings | $ 18 | $ 12 |
Loans and Accounts Receivable46
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | $ 793 | $ 774 | $ 746 | $ 775 |
Interest income recognized | 22 | 19 | 60 | 53 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 587 | 585 | 555 | 580 |
Interest income recognized | 14 | 13 | 38 | 34 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 13 | 11 | 13 | 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 | 53 | 53 | 52 | 55 |
Interest income recognized | 4 | 3 | 12 | 10 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 111 | 108 | 102 | 105 |
Interest income recognized | 4 | 3 | 10 | 9 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 29 | 17 | 24 | 21 |
Interest income recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Accounts Receivable47
Loans and Accounts Receivable (Details 6) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)M | Sep. 30, 2015USD ($)M | Sep. 30, 2016USD ($)M | Sep. 30, 2015USD ($)M | |
Troubled Debt Restructurings | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 10,000 | 13,000 | 30,000 | 40,000 |
Aggregated Outstanding Balance | $ 85 | $ 106 | $ 257 | $ 329 |
Card Member Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 8,000 | 10,000 | 23,000 | 31,000 |
Aggregated Outstanding Balance | $ 56 | $ 69 | $ 163 | $ 218 |
Average basis point reduction in interest rate by class of Card Member loans | 9.00% | 9.00% | 10.00% | 10.00% |
Card Member Receivables [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 2,000 | 3,000 | 7,000 | 9,000 |
Aggregated Outstanding Balance | $ 29 | $ 37 | $ 94 | $ 111 |
Average payment term extension | M | 19 | 12 | 17 | 12 |
Loans and Accounts Receivable48
Loans and Accounts Receivable (Details 7) pure in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Troubled Debt Restructurings That Subsequently Defaulted [Domain] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 4 | 2 | 8 | 9 |
Aggregated Outstanding Balance Upon Payment Default | $ 13 | $ 15 | $ 33 | $ 42 |
Card Member Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 3 | 1 | 5 | 6 |
Aggregated Outstanding Balance Upon Payment Default | $ 12 | $ 14 | $ 30 | $ 39 |
Card Member Receivables [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 1 | 1 | 3 | 3 |
Aggregated Outstanding Balance Upon Payment Default | $ 1 | $ 1 | $ 3 | $ 3 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in the Card Member loans reserve for losses | ||||
Balance, January 1 | $ 1,028 | $ 1,201 | ||
Card Member loans - provisions | $ 319 | $ 309 | 831 | 829 |
Card Member loans net write-offs - principal | (687) | (733) | ||
Card Member loans net write-offs - interest and fees | (128) | (122) | ||
Card Member loans reserves for losses - other | 70 | (11) | ||
Balance, September 30 | $ 1,114 | $ 1,164 | $ 1,114 | $ 1,164 |
Reserves For Losses (Details 1)
Reserves For Losses (Details 1) - USD ($) $ in Millions | Sep. 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 | $ 344 | $ 279 |
Reserves on Card Member loans evaluated individually for impairment | 60 | 53 |
Card Member loans evaluated collectively for impairment | 60,274 | 58,294 |
Reserves on Card Member loans evaluated collectively for impairment | $ 1,054 | $ 975 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in the Card Member receivables reserve for losses | ||||
Balance, January 1 | $ 462 | $ 465 | ||
Card Member receivables - provisions | $ 174 | $ 203 | 496 | 542 |
Card Member receivables - net write-offs | (518) | (544) | ||
Card Member receivables reserves for losses - other | (3) | (22) | ||
Balance, September 30 | $ 437 | $ 441 | $ 437 | $ 441 |
Reserves for Losses (Details 3)
Reserves for Losses (Details 3) - USD ($) $ in Millions | Sep. 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 | $ 46 | $ 33 |
Reserves on Card Member receivables evaluated individually for impairment | 24 | 20 |
Card Member receivables evaluated collectively for impairment | 45,212 | 44,100 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 413 | $ 442 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Card Member receivables reserves for losses - other | $ (3) | $ (22) | ||
Card Member loans reserves for losses - other | 70 | (11) | ||
Allowance for Card Member Receivables and Reserves, Recoveries of Bad Debts | 301 | 302 | ||
Allowance for Card Member Loans, Recoveries of Bad Debts | 280 | 320 | ||
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | 16 | 49 | ||
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | 24 | 30 | ||
CardMember loans transferred from HFS to held for investment | $ 0 | |||
Unauthorized Transactions [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Card Member receivables reserves for losses - 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 reserves for losses - other | 0 | (13) | ||
Card Member loans reserves for losses - other | (3) | (18) | ||
Other Items [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Card Member receivables reserves for losses - other | (3) | (9) | ||
Card Member loans reserves for losses - other | $ 6 | $ 7 | ||
CardMember loans transferred from HFS to held for investment | 245 | $ 20 | ||
CardMember reserves associated with loans held for investments | $ 60 | $ 7 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available for Sale Securities by Type | ||
Cost | $ 3,652 | $ 3,668 |
Gross Unrealized Gains | 78 | 100 |
Gross Unrealized Losses | (2) | (9) |
Estimated Fair Value | 3,728 | 3,759 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 2,255 | 2,813 |
Gross Unrealized Gains | 50 | 85 |
Gross Unrealized Losses | 0 | (5) |
Estimated Fair Value | 2,305 | 2,893 |
U.S. Government agency obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 12 | 2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 12 | 2 |
U.S. Government treasury obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 529 | 406 |
Gross Unrealized Gains | 12 | 4 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | 541 | 409 |
Corporate debt securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 20 | 29 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 21 | 30 |
Mortgage-backed securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 103 | 117 |
Gross Unrealized Gains | 5 | 4 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 108 | 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 | 682 | 250 |
Gross Unrealized Gains | 10 | 6 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | 692 | 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 | (2) | (2) |
Estimated Fair Value | $ 48 | $ 48 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Sep. 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 | $ 0 | $ 452 |
Estimated Fair Value, 12 months or more | 33 | 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 | 0 | 100 |
Estimated Fair Value, 12 months or more | 0 | 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 | 0 | 99 |
Estimated Fair Value, 12 months or more | 0 | 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 | 0 | 253 |
Estimated Fair Value, 12 months or more | 0 | 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 | 0 |
Estimated Fair Value, 12 months or more | 33 | $ 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 (Detail56
Investment Securities (Details 2) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 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 | 6 | 17 |
Number of securities, total | securities | 6 | 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 | 33 | 46 |
Estimated Fair Value, Total | 33 | 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 | 6 | 15 |
Number of securities, total | securities | 6 | 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 | 33 | 37 |
Estimated Fair Value, Total | 33 | 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 (Detail57
Investment Securities (Details 3) $ in Millions | Sep. 30, 2016USD ($) |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | $ 788 |
Due after 1 year but within 5 years | 347 |
Due after 5 years but within 10 years | 399 |
Due after 10 years | 2,067 |
Total | 3,601 |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 789 |
Estimated Fair Value, Due after 1 year but within 5 years | 352 |
Estimated Fair Value, Due after 5 years but within 10 years | 418 |
Estimated Fair Value, Due after 10 years | 2,120 |
Total | $ 3,679 |
Investment Securities (Detail58
Investment Securities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 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 | Sep. 30, 2016 | Dec. 31, 2015 |
Assets from Trusts [Line Items] | ||
Restricted cash | $ 612 | $ 155 |
American Express Charge Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | 611 | 153 |
American Express Lending Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | $ 1 | $ 2 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) $ in Billions | Sep. 30, 2016USD ($) |
American Express Charge Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 2 |
American Express Lending Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 13.3 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
U.S.: | ||
Interest-bearing | $ 52,767 | $ 54,102 |
Non-interest-bearing | 333 | 478 |
Non-U.S.: | ||
Interest-bearing | 88 | 82 |
Non-interest-bearing | 312 | 335 |
Total customer deposits | 53,500 | 54,997 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 297 | 389 |
Non-U.S.: | ||
Non-interest-bearing | $ 297 | $ 323 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 30,672 | $ 29,023 |
Certificates of deposit - Direct | 290 | 281 |
Certificates of deposit - Third party | 12,879 | 13,856 |
Sweep accounts - Third party | 8,926 | 10,942 |
Other retail deposits: | ||
Non-U.S. deposits and U.S. non-interest bearing deposits | 139 | 183 |
Card Member credit balances - U.S. and non-U.S. | 594 | 712 |
Total customer deposits | $ 53,500 | $ 54,997 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Sep. 30, 2016USD ($) |
Time Deposits By Maturity | |
2,016 | $ 1,418 |
2,017 | 3,670 |
2,018 | 3,203 |
2,019 | 2,336 |
2,020 | 2,518 |
After 5 years | 34 |
Total | 13,179 |
United States [Member] | |
Time Deposits By Maturity | |
2,016 | 1,416 |
2,017 | 3,662 |
2,018 | 3,203 |
2,019 | 2,336 |
2,020 | 2,518 |
After 5 years | 34 |
Total | 13,169 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,016 | 2 |
2,017 | 8 |
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 | Sep. 30, 2016 | Dec. 31, 2015 |
Time Deposits $250,000 Or More [Abstract] | ||
U.S. | $ 116 | $ 105 |
Non-U.S. | 1 | 1 |
Total | $ 117 | $ 106 |
Contingencies (Details Textuals
Contingencies (Details Textuals) $ in Millions | Sep. 30, 2016USD ($) |
Contingencies (Textuals) [Abstract] | |
Range of possible loss, minimum | $ 0 |
Range of possible loss, maximum | $ 190 |
Derivatives and Hedging Activ66
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | $ 720 | $ 544 |
Total fair value of derivatives liabilties | 241 | 201 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | (256) | (155) |
Derivative asset and liability netting | (99) | (107) |
Total derivative assets, net | 365 | 282 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 519 | 427 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 330 | 236 |
Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 189 | 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 | 201 | 117 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | 0 | 0 |
Derivative asset and liability netting | (99) | (107) |
Total derivative liabilities, net | 142 | 94 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 92 | 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 | 149 | 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 | 92 | 57 |
Risk Exposure Low [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, net | 341 | 0 |
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 Activ67
Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contracts [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative contract | $ (123) | $ 108 | $ 103 | $ 82 |
Hedged item | 134 | (114) | (90) | (85) |
Net hedge ineffectiveness | $ 11 | $ (6) | $ 13 | $ (3) |
Derivatives and Hedging Activ68
Derivatives and Hedging Activities (Details 2) - Other Expense [Member] - Foreign exchange contracts [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 5 | $ 0 |
Amount Of Ineffectiveness On Net Investment Hedges | $ 0 | $ 1 |
Derivatives and Hedging Activ69
Derivatives and Hedging Activities (Details Textuals) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||||
Net reduction in interest expense on long term debt and other | $ 55 | $ 73 | $ 173 | $ 214 | |
Shares held in equity investment sold | 0 | 0 | |||
Margin On Interest Rate Swap Not Netted | $ 144 | $ 144 | $ 149 | ||
Derivative [Line Items] | |||||
Notional amount of long-term debt | 17 | 17 | 18.8 | ||
Equity investment | 49 | 49 | 50 | ||
Effective portion of gain (loss) on hedges | 18 | 384 | 25 | 545 | |
Net hedge ineffectiveness | 0 | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 8 | 389 | |||
Not Sold Or Repledged [Member] | |||||
Derivative [Line Items] | |||||
Securities received as collateral | 24 | 24 | 0 | ||
Risk Exposure Low [Member] | |||||
Derivative [Line Items] | |||||
Total derivative assets, net | 0 | 0 | |||
Other Expense [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) in Changes of Fair Value of Derivatives not designated as hedges | (4) | (3) | (12) | 102 | |
Gain on embedded derivatives | 1 | $ (4) | 7 | $ (2) | |
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 | 0 | 0 | $ 0 | ||
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 | $ 1 | $ 1 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investment securities: | ||
Equity securities and other | $ 49 | $ 50 |
Debt securities | 3,679 | 3,709 |
Derivatives | 720 | 544 |
Total assets | 4,448 | 4,303 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities and other | 1 | 1 |
Debt securities | 541 | 409 |
Derivatives | 0 | 0 |
Total assets | 542 | 410 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities and other | 48 | 49 |
Debt securities | 3,138 | 3,300 |
Derivatives | 720 | 544 |
Total assets | 3,906 | 3,893 |
Level 3 [Member] | ||
Investment securities: | ||
Equity securities and other | 0 | 0 |
Debt securities | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | $ 0 | $ 0 |
Fair Values (Details 1)
Fair Values (Details 1) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Liabilities [Abstract] | ||
Derivatives | $ 241 | $ 201 |
Total liabilities | 241 | 201 |
Level 1 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 241 | 201 |
Total liabilities | 241 | 201 |
Level 3 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | $ 26,520 | $ 22,762 | $ 19,938 | $ 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 | 13,179 | |||
Long-term debt | 44,894 | 48,061 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 44,821 | 43,671 | ||
Card Member loans, net | 59,504 | 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 | 14,759 | 13,602 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 27,000 | 23,000 | ||
Other financial assets | 48,000 | 47,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 61,000 | 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 | 13,000 | 14,000 | ||
Long-term debt | 45,000 | 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 | 27,000 | 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 | 13,000 | 14,000 | ||
Long-term debt | 46,000 | 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 | 14,800 | 13,600 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 5,500 | 6,700 | ||
Card Member loans, net | 24,700 | 23,500 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 25,000 | 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 | 2,000 | 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 | 13,000 | 14,000 | ||
Long-term debt | 46,000 | 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 | Sep. 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 | Sep. 30, 2016 | Dec. 31, 2015 |
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 48,000 | $ 48,000 |
Amount of related liability | 90 | 86 |
Return And Merchant Protection [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 42,000 | 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 | $ 49 | $ 37 |
Changes in Accumulated Other 75
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in Other Comprehensive income | ||||
Balances as of start of period | $ (2,534) | |||
(Decrease) increase due to amounts reclassified into earnings | $ 1 | $ 2 | ||
Pension and other postretirement benefit gains | 7 | $ 7 | 39 | 36 |
Balances as of end of period | (2,618) | (2,618) | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (2,621) | (2,154) | (2,534) | (1,919) |
Net unrealized gains (losses) | (14) | (6) | (5) | (26) |
(Decrease) increase due to amounts reclassified into earnings | 1 | 1 | 3 | 2 |
Net translation loss of investments in foreign operations | 29 | (604) | (140) | (1,009) |
Net losses gains related to hedges of investment in foreign operations | (18) | 384 | 25 | 546 |
Pension and other postretirement benefit gains | 7 | 7 | 39 | 36 |
Net change in accumulated other comprehensive income (loss) | 3 | (220) | (84) | (455) |
Balances as of end of period | (2,618) | (2,374) | (2,618) | (2,374) |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | 65 | 76 | 58 | 96 |
Net unrealized gains (losses) | (14) | (6) | (5) | (26) |
(Decrease) increase due to amounts reclassified into earnings | (1) | (1) | (3) | (1) |
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) | (15) | (7) | (8) | (27) |
Balances as of end of period | 50 | 69 | 50 | 69 |
Foreign Currency Translation Adjustments [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (2,170) | (1,743) | (2,044) | (1,499) |
Net unrealized gains (losses) | 0 | 0 | 0 | 0 |
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 | 0 | (1) |
Net translation loss of investments in foreign operations | 29 | (604) | (140) | (1,009) |
Net losses gains related to hedges of investment in foreign operations | (18) | 384 | 25 | 546 |
Pension and other postretirement benefit gains | 0 | 0 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | 11 | (220) | (115) | (464) |
Balances as of end of period | (2,159) | (1,963) | (2,159) | (1,963) |
Net Unrealized Pension and Other Postretirement Gains (Losses) [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (516) | (487) | (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 | 7 | 7 | 39 | 36 |
Net change in accumulated other comprehensive income (loss) | 7 | 7 | 39 | 36 |
Balances as of end of period | $ (509) | $ (480) | $ (509) | $ (480) |
Changes in Accumulated Other 76
Changes in Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other non-interest revenue | $ 483 | $ 504 | $ 1,514 | $ 1,493 |
Interest expense on long-term debt and other | 280 | 274 | 841 | 886 |
Other expenses | 1,498 | 1,635 | 3,388 | 4,569 |
(Decrease) increase due to amounts reclassified into earnings | 1 | 2 | ||
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other non-interest revenue | 1 | |||
Income tax provision for other non-interest revenue | 0 | |||
(Decrease) increase due to amounts reclassified into earnings | (1) | (1) | (3) | (1) |
Foreign Currency Translation Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 | 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 | 1 | 1 | 3 | 2 |
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 | 3 | ||
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 | 1 | 1 | 5 | 1 |
Income tax provision for other non-interest revenue | 0 | 0 | (2) | 0 |
(Decrease) increase due to amounts reclassified into earnings | 1 | 1 | 3 | 1 |
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 | 0 | 0 | 1 |
(Decrease) increase due to amounts reclassified into earnings | $ 0 | $ 0 | $ 0 | $ 1 |
Non-Interest Revenue and Expe77
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Foreign currency conversion fee revenue | $ 207 | $ 213 | $ 610 | $ 646 |
Delinquency fees | 183 | 197 | 575 | 586 |
Loyalty Partner-related fees | 106 | 100 | 304 | 279 |
Travel commissions and fees | 89 | 87 | 256 | 271 |
Service fees | 71 | 97 | 228 | 279 |
Other | 38 | 33 | 103 | 101 |
Total Other fees and commissions | $ 694 | $ 727 | $ 2,076 | $ 2,162 |
Non-Interest Revenue and Expe78
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Global Network Services partner revenues | $ 156 | $ 156 | $ 498 | $ 474 |
Gross realized gains on investment securities | 1 | 1 | 5 | 1 |
Other | 326 | 347 | 1,011 | 1,018 |
Total other revenues | $ 483 | $ 504 | $ 1,514 | $ 1,493 |
Non-Interest Revenue and Expe79
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Professional services | $ 630 | $ 687 | $ 1,862 | $ 1,966 |
Occupancy and equipment | 429 | 523 | 1,332 | 1,372 |
Card and merchant-related fraud losses | 67 | 64 | 182 | 247 |
Communications | 68 | 84 | 231 | 257 |
Gain on sale of held for sale (HFS) portfolio | 0 | 0 | (1,218) | 0 |
Other | 304 | 277 | 999 | 727 |
Total other, net | $ 1,498 | $ 1,635 | $ 3,388 | $ 4,569 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Taxes (Textuals) | ||||
Unrecognized tax benefits as a result of potential resolutions of prior years' tax | $ 527 | $ 527 | ||
Unrecognized tax benefits, amounts recorded to equity | $ 310 | $ 310 | ||
Actual tax rates | 34.20% | 34.70% | 33.90% | 34.20% |
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 (EP81
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||||
Basic and diluted: | ||||||||
Net income | $ 1,142 | $ 1,266 | $ 4,583 | $ 4,264 | ||||
Preferred dividends | (21) | (22) | (61) | (42) | ||||
Net income available to common stockholders - basic | 1,121 | 1,244 | 4,522 | 4,222 | ||||
Net income available to common stockholders - diluted | 1,121 | 1,244 | 4,522 | 4,222 | ||||
Earnings allocated to participating share awards | (9) | (10) | (37) | (32) | ||||
Net income attributable to common shareholders | $ 1,112 | $ 1,234 | $ 4,485 | $ 4,190 | ||||
Denominator: | ||||||||
Basic | 920 | 994 | 940 | 1,007 | ||||
Add: Weighted-average stock options | 3 | 3 | 3 | 4 | ||||
Diluted | 923 | 997 | 943 | 1,011 | ||||
Earnings Per Common Share, Basic (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 1.21 | [1] | $ 1.24 | [1] | $ 4.77 | [2] | $ 4.16 | [2] |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 1.2 | [3] | $ 1.24 | [3] | $ 4.76 | [4] | $ 4.15 | [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 | 3.2 | 0.6 | 2.2 | 0.5 | ||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 9 million and $ 10 million for the three months ended September 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 21 million and $ 22 million for the three months ended September 30 , 2016 and 2015 , respectively. | |||||||
[2] | Represents net income less (i) earnings allocate d to participating share awards of $ 37 million and $ 32 million for the nine months ended September 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 61 million and $ 42 million for the nine months ended September 30 , 2016 and 2015 , respectively. | |||||||
[3] | Represents net income less (i) earnings allocated to participating share awards of $ 9 million and $ 10 million for the three months ended September 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 21 million and $ 22 million for the three months ended September 30 , 2016 and 2015 , respectively. | |||||||
[4] | Represents net income less (i) earnings allocate d to participating share awards of $ 37 million and $ 32 million for the nine months ended September 30 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 61 million and $ 42 million for the nine months ended September 30 , 2016 and 2015 , respectively. |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | $ 6,440,000 | $ 6,688,000 | $ 19,734,000 | $ 20,052,000 | |
Interest income | 1,764,000 | 1,904,000 | 5,654,000 | 5,598,000 | |
Interest expense | 430,000 | 399,000 | 1,291,000 | 1,223,000 | |
Total revenues, net of interest expense | 7,774,000 | 8,193,000 | 24,097,000 | 24,427,000 | |
Net income | 1,142,000 | 1,266,000 | 4,583,000 | 4,264,000 | |
Total assets | 153,377,000 | 154,000,000 | 153,377,000 | 154,000,000 | $ 161,184,000 |
Total equity | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 | $ 20,673,000 |
U S Consumer Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,849,000 | 2,117,000 | 5,947,000 | 6,324,000 | |
Interest income | 1,178,000 | 1,324,000 | 3,847,000 | 3,849,000 | |
Interest expense | 125,000 | 123,000 | 404,000 | 358,000 | |
Total revenues, net of interest expense | 2,902,000 | 3,318,000 | 9,390,000 | 9,815,000 | |
Net income | 401,000 | 542,000 | 2,162,000 | 1,814,000 | |
Total assets | 79,400,000 | 84,000,000 | 79,400,000 | 84,000,000 | |
Total equity | 7,500,000 | 7,300,000 | 7,500,000 | 7,300,000 | |
International Consumer and Network Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,205,000 | 1,141,000 | 3,587,000 | 3,449,000 | |
Interest income | 231,000 | 228,000 | 692,000 | 710,000 | |
Interest expense | 55,000 | 55,000 | 167,000 | 176,000 | |
Total revenues, net of interest expense | 1,381,000 | 1,314,000 | 4,112,000 | 3,983,000 | |
Net income | 155,000 | 154,000 | 571,000 | 544,000 | |
Total assets | 34,400,000 | 34,500,000 | 34,400,000 | 34,500,000 | |
Total equity | 2,700,000 | 3,100,000 | 2,700,000 | 3,100,000 | |
Global Commercial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 2,240,000 | 2,217,000 | 6,710,000 | 6,677,000 | |
Interest income | 282,000 | 297,000 | 913,000 | 864,000 | |
Interest expense | 98,000 | 91,000 | 297,000 | 271,000 | |
Total revenues, net of interest expense | 2,424,000 | 2,423,000 | 7,326,000 | 7,270,000 | |
Net income | 466,000 | 468,000 | 1,527,000 | 1,535,000 | |
Total assets | 46,800,000 | 45,900,000 | 46,800,000 | 45,900,000 | |
Total equity | 7,300,000 | 6,800,000 | 7,300,000 | 6,800,000 | |
Global Merchant Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,044,000 | 1,123,000 | 3,172,000 | 3,323,000 | |
Interest income | 0 | 0 | 1,000 | 1,000 | |
Interest expense | (60,000) | (46,000) | (180,000) | (154,000) | |
Total revenues, net of interest expense | 1,104,000 | 1,169,000 | 3,353,000 | 3,478,000 | |
Net income | 359,000 | 397,000 | 1,089,000 | 1,135,000 | |
Total assets | 23,200,000 | 23,300,000 | 23,200,000 | 23,300,000 | |
Total equity | 2,300,000 | 2,600,000 | 2,300,000 | 2,600,000 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 102,000 | 90,000 | 318,000 | 279,000 | |
Interest income | 73,000 | 55,000 | 201,000 | 174,000 | |
Interest expense | 212,000 | 176,000 | 603,000 | 572,000 | |
Total revenues, net of interest expense | (37,000) | (31,000) | (84,000) | (119,000) | |
Net income | (239,000) | (295,000) | (766,000) | (764,000) | |
Total assets | (29,800,000) | (33,700,000) | (29,800,000) | (33,700,000) | |
Total equity | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 |