Debt

12 Months Ended

Dec. 31, 2017

NOTE 9

Debt

Short-Term Borrowings

The Company’s short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows:

	2017				2016
(Millions, except percentages)	Outstanding Balance		Year-End Stated Rate on Debt	^(a)	Outstanding Balance		Year-End Stated Rate on Debt	^(a)
Commercial paper^(b)	$	1,168	1.54	%	$	2,993	1.13	%
Other short-term borrowings^(c)		2,110	2.34			2,588	1.28
Total	$	3,278	2.05	%	$	5,581	1.20	%

For floating-rate issuances, the stated interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2017 and 2016.
Average commercial paper outstanding was $1,076 million and $491 million in 2017 and 2016, respectively.
Includes overdrafts with banks of $132 million and $369 million as of December 31, 2017 and 2016, respectively. In addition, balances include certain book overdrafts (i.e., primarily timing differences arising in the ordinary course of business), short-term borrowings from banks, as well as interest-bearing amounts due to merchants in accordance with merchant service agreements.

The Company maintained a three-year committed, revolving, secured borrowing facility that gives the Company the right to sell up to $2.0 billion face amount of eligible certificates issued from the Lending Trust at any time through September 15, 2020. The facility was undrawn as of both December 31, 2017 and 2016.

The Company paid $9.2 million and $8.6 million in fees to maintain the secured borrowing facility in 2017 and 2016, respectively. The committed facility does not contain a material adverse change clause, which might otherwise preclude borrowing under the facility, nor is it dependent on the Company’s credit rating.

Long-term Debt

The Company’s long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows:

	2017								2016
(Millions, except percentages)	Original Contractual Maturity Dates	Outstanding Balance^(a)		Year-End Stated Rate on Debt	^(b)	Year-End Effective Interest Rate with Swaps	^(b)(c)	Outstanding Balance		^(a)	Year-End Stated Rate on Debt	^(b)	Year-End Effective Interest Rate with Swaps	^(b)(c)
American Express Company
(Parent Company only)
Fixed Rate Senior Notes	2018 - 2042	$	10,377	3.85	%	3.17	%	$	6,932		5.13	%	4.24	%
Floating Rate Senior Notes	2018 - 2022		1,750	1.93		―			850		1.51		―
Subordinated Notes	2024		598	3.63		2.66			598		3.63		1.92
American Express Credit Corporation
Fixed Rate Senior Notes	2018 - 2027		19,652	2.24		2.27			16,201		1.98		1.44
Floating Rate Senior Notes	2018 - 2022		4,550	2.09		―			4,350		1.52		―
American Express Centurion Bank
Fixed Rate Senior Notes			―	―		―			1,306		5.99		4.83
Floating Rate Senior Notes	2018		125	1.89		―			125		1.26		―
American Express Bank, FSB
Fixed Rate Senior Notes			―	―		―			1,000		6.00		―
Floating Rate Senior Notes			―	―		―			300		0.96		―
American Express Lending Trust
Fixed Rate Senior Notes	2019 - 2022		8,099	1.90		―			3,500		1.41		―
Floating Rate Senior Notes	2018 - 2022		5,800	2.03		―			7,025		1.20		―
Fixed Rate Subordinated Notes	2020 - 2022		206	2.21		―			-		-		―
Floating Rate Subordinated Notes	2018 - 2022		192	2.05		―			316		1.34		―
American Express Charge Trust II
Floating Rate Senior Notes	2018 - 2020		4,200	1.79		―			4,200		1.12		―
Floating Rate Subordinated Notes	2018		87	2.11		―			87		1.34		―
Other
Fixed Rate Instruments^(d)	2021 - 2033		23	5.59		―			24		5.62		―
Floating Rate Borrowings	2018 - 2020		256	0.42		―	%		247		0.44		―	%
Unamortized Underwriting Fees			(111)						(71)
Total Long-Term Debt		$	55,804	2.44	%			$	46,990		2.39	%

The outstanding balances include (i) unamortized discount and premium, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Under fair value hedge accounting, the outstanding balances on these fixed-rate notes are adjusted to reflect the impact of changes in fair value due to changes in interest rates. Refer to Note 14 for more details on the Company’s treatment of fair value hedges.
For floating-rate issuances, the stated and effective interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2017 and 2016.
Effective interest rates are only presented when swaps are in place to hedge the underlying debt.
Includes $23 million and $24 million as of December 31, 2017 and 2016, respectively, related to capitalized lease transactions.

Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2017 were as follows:

(Millions)		2018		2019		2020	2021		2022		Thereafter		Total
American Express Company (Parent Company only)	$	3,850	$	641	$	2,000	$	―	$	3,525	$	3,523	$	13,539
American Express Credit Corporation		3,654		7,150		6,600		2,939		2,050		2,000		24,393
American Express Centurion Bank		125		―		―		―		―		―		125
American Express Lending Trust		2,885		3,488		5,924		―		2,001		―		14,298
American Express Charge Trust II		1,287		―		3,000		―		―		―		4,287
Other		133		35		88		12		―		12		280
	$	11,934	$	11,314	$	17,612	$	2,951	$	7,576	$	5,535	$	56,922
Unamortized Underwriting Fees														(111)
Unamortized Discount and Premium														(825)
Impacts due to Fair Value Hedge Accounting														(182)
Total Long-Term Debt													$	55,804

The Company maintained a bank line of credit of $3.5 billion and $3.0 billion as of December 31, 2017 and 2016, respectively, all of which was undrawn as of the respective dates. These undrawn amounts support contingent funding needs. The availability of the credit line is subject to the Company’s compliance with certain financial covenants, principally the maintenance by American Express Credit Corporation (Credco) of a 1.25 ratio of combined earnings and fixed charges, to fixed charges. As of December 31, 2017 and 2016, the Company was not in violation of any of its debt covenants.

Additionally, the Company maintained a three-year committed, revolving, secured borrowing facility that gives the Company the right to sell up to $3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 15, 2020. As of both December 31, 2017 and 2016, $3.0 billion was drawn on this facility.

The Company paid $16.3 million and $11.5 million in fees to maintain these lines in 2017 and 2016, respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are they dependent on the Company’s credit rating.

The Company paid total interest, primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits, of $2.0 billion, $1.7 billion and $1.6 billion in 2017, 2016 and 2015, respectively.