New York
|
13-4922250
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
200 Vesey Street, New York, New York
|
10285
|
|
(Address of principal executive offices)
|
(Zip Code)
|
None
|
Large accelerated filer
|
Accelerated filer
|
Non-accelerated filer
|
Smaller reporting company
Emerging growth company
|
Class
|
Outstanding at April 15, 2019
|
||
Common Shares (par value $0.20 per share)
|
835,080,540 Shares
|
Part I.
|
Page No.
|
|||||
Item 1.
|
||||||
1
|
||||||
2
|
||||||
3
|
||||||
4
|
||||||
5
|
||||||
6
|
||||||
Item 2.
|
29
|
|||||
Item 3.
|
53
|
|||||
Item 4.
|
53
|
|||||
Part II.
|
||||||
Item 1.
|
56
|
|||||
Item 1A.
|
56
|
|||||
Item 2.
|
57
|
|||||
Item 5.
|
58
|
|||||
Item 6.
|
58
|
|||||
59
|
||||||
E-1
|
Three Months Ended March 31 (Millions, except per share amounts)
|
2019
|
2018
|
||||||
Revenues
|
||||||||
Non-interest revenues
|
||||||||
Discount revenue
|
$
|
6,195
|
$
|
5,889
|
||||
Net card fees
|
944
|
830
|
||||||
Other fees and commissions
|
803
|
781
|
||||||
Other
|
363
|
377
|
||||||
Total non-interest revenues
|
8,305
|
7,877
|
||||||
Interest income
|
||||||||
Interest on loans
|
2,725
|
2,326
|
||||||
Interest and dividends on investment securities
|
33
|
21
|
||||||
Deposits with banks and other
|
196
|
115
|
||||||
Total interest income
|
2,954
|
2,462
|
||||||
Interest expense
|
||||||||
Deposits
|
399
|
270
|
||||||
Long-term debt and other
|
496
|
351
|
||||||
Total interest expense
|
895
|
621
|
||||||
Net interest income
|
2,059
|
1,841
|
||||||
Total revenues net of interest expense
|
10,364
|
9,718
|
||||||
Provisions for losses
|
||||||||
Charge card
|
253
|
242
|
||||||
Card Member loans
|
525
|
499
|
||||||
Other
|
31
|
34
|
||||||
Total provisions for losses
|
809
|
775
|
||||||
Total revenues net of interest expense after provisions for losses
|
9,555
|
8,943
|
||||||
Expenses
|
||||||||
Marketing and business development
|
1,573
|
1,345
|
||||||
Card Member rewards
|
2,451
|
2,347
|
||||||
Card Member services
|
550
|
409
|
||||||
Salaries and employee benefits
|
1,422
|
1,326
|
||||||
Other, net
|
1,601
|
1,434
|
||||||
Total expenses
|
7,597
|
6,861
|
||||||
Pretax income
|
1,958
|
2,082
|
||||||
Income tax provision
|
408
|
448
|
||||||
Net income
|
$
|
1,550
|
$
|
1,634
|
||||
Earnings per Common Share (Note 15):(a)
|
||||||||
Basic
|
$
|
1.81
|
$
|
1.86
|
||||
Diluted
|
$
|
1.80
|
$
|
1.86
|
||||
Average common shares outstanding for earnings per common share:
|
||||||||
Basic
|
841
|
859
|
||||||
Diluted
|
843
|
861
|
(a) |
Represents net income less (i) earnings allocated to participating share awards of $11 million and $13 million for the three months ended March 31, 2019 and 2018, respectively, and (ii) dividends on preferred shares of $21 million for both the three months ended March 31, 2019 and 2018.
|
Three Months Ended March 31 (Millions)
|
2019
|
2018
|
||||||
Net income
|
$
|
1,550
|
$
|
1,634
|
||||
Other comprehensive (loss) income:
|
||||||||
Net unrealized securities gains (losses), net of tax
|
17
|
(11
|
)
|
|||||
Foreign currency translation adjustments, net of tax
|
8
|
30
|
||||||
Net unrealized pension and other postretirement benefits, net of tax
|
(27
|
)
|
28
|
|||||
Other comprehensive (loss) income
|
(2
|
)
|
47
|
|||||
Comprehensive income
|
$
|
1,548
|
$
|
1,681
|
March 31,
|
December 31,
|
|||||||
(Millions, except share data)
|
2019
|
2018
|
||||||
Assets
|
||||||||
Cash and cash equivalents
|
||||||||
Cash and due from banks
|
$
|
4,026
|
$
|
3,253
|
||||
Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2019, $308; 2018, $64)
|
29,110
|
24,026
|
||||||
Short-term investment securities
|
41
|
166
|
||||||
Total cash and cash equivalents
|
33,177
|
27,445
|
||||||
Accounts receivable
|
||||||||
Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2019, $7,758; 2018, $8,539), less reserves: 2019, $608; 2018, $573
|
56,227
|
55,320
|
||||||
Other receivables, less reserves: 2019, $25; 2018, $25
|
3,128
|
2,907
|
||||||
Loans
|
||||||||
Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2019, $31,495; 2018, $33,194), less reserves: 2019, $2,121; 2018, $2,134
|
78,874
|
79,720
|
||||||
Other loans, less reserves: 2019, $129; 2018, $124
|
3,965
|
3,676
|
||||||
Investment securities
|
6,457
|
4,647
|
||||||
Premises and equipment, less accumulated depreciation and amortization: 2019, $6,315; 2018, $6,015
|
4,479
|
4,416
|
||||||
Other assets (includes restricted cash of consolidated variable interest entities: 2019, $84; 2018, $70)
|
10,886
|
10,471
|
||||||
Total assets
|
$
|
197,193
|
$
|
188,602
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Liabilities
|
||||||||
Customer deposits
|
$
|
72,857
|
$
|
69,960
|
||||
Travelers Cheques and other prepaid products
|
2,223
|
2,295
|
||||||
Accounts payable
|
16,162
|
12,255
|
||||||
Short-term borrowings
|
2,028
|
3,100
|
||||||
Long-term debt (includes debt issued by consolidated variable interest entities: 2019, $19,538; 2018, $19,509)
|
58,418
|
58,423
|
||||||
Other liabilities
|
23,287
|
20,279
|
||||||
Total liabilities
|
$
|
174,975
|
$
|
166,312
|
||||
Contingencies (Note 8)
|
||||||||
Shareholders’ Equity
|
||||||||
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of March 31, 2019 and December 31, 2018
|
―
|
―
|
||||||
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 837 million shares as of March 31, 2019 and 847 million shares as of December 31, 2018
|
168
|
170
|
||||||
Additional paid-in capital
|
11,963
|
12,218
|
||||||
Retained earnings
|
12,686
|
12,499
|
||||||
Accumulated other comprehensive loss
|
||||||||
Net unrealized debt securities gains (losses), net of tax of: 2019, $3; 2018, $(1)
|
9
|
(8
|
)
|
|||||
Foreign currency translation adjustments, net of tax of: 2019, $(336); 2018, $(300)
|
(2,125
|
)
|
(2,133
|
)
|
||||
Net unrealized pension and other postretirement benefits, net of tax of: 2019, $(181); 2018, $(170)
|
(483
|
)
|
(456
|
)
|
||||
Total accumulated other comprehensive loss
|
(2,599
|
)
|
(2,597
|
)
|
||||
Total shareholders’ equity
|
22,218
|
22,290
|
||||||
Total liabilities and shareholders’ equity
|
$
|
197,193
|
$
|
188,602
|
Three Months Ended March 31 (Millions)
|
2019
|
2018
|
||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$
|
1,550
|
$
|
1,634
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provisions for losses
|
809
|
775
|
||||||
Depreciation and amortization
|
297
|
348
|
||||||
Deferred taxes and other
|
137
|
(254
|
)
|
|||||
Stock-based compensation
|
85
|
84
|
||||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
||||||||
Other receivables
|
(196
|
)
|
122
|
|||||
Other assets
|
(161
|
)
|
(85
|
)
|
||||
Accounts payable and other liabilities
|
6,100
|
(431
|
)
|
|||||
Travelers Cheques and other prepaid products
|
(74
|
)
|
(130
|
)
|
||||
Net cash provided by operating activities
|
8,547
|
2,063
|
||||||
Cash Flows from Investing Activities
|
||||||||
Maturities and redemptions of investment securities
|
2,227
|
886
|
||||||
Purchases of investments
|
(4,060
|
)
|
(1,215
|
)
|
||||
Net (increase) decrease in Card Member loans and receivables, and other loans(a)
|
(656
|
)
|
348
|
|||||
Purchase of premises and equipment, net of sales: 2019, $33; 2018, nil
|
(348
|
)
|
(237
|
)
|
||||
Acquisitions/dispositions, net of cash acquired
|
(20
|
)
|
(475
|
)
|
||||
Other investing activities, net
|
148
|
―
|
||||||
Net cash used in investing activities
|
(2,709
|
)
|
(693
|
)
|
||||
Cash Flows from Financing Activities
|
||||||||
Net increase in customer deposits
|
2,892
|
2,206
|
||||||
Net decrease in short-term borrowings
|
(1,099
|
)
|
(1,489
|
)
|
||||
Proceeds from long-term borrowings
|
3,633
|
3,984
|
||||||
Payments of long-term borrowings
|
(3,821
|
)
|
(7,203
|
)
|
||||
Issuance of American Express common shares
|
19
|
11
|
||||||
Repurchase of American Express common shares and other
|
(1,352
|
)
|
(134
|
)
|
||||
Dividends paid
|
(355
|
)
|
(324
|
)
|
||||
Net cash used in financing activities
|
(83
|
)
|
(2,949
|
)
|
||||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash
|
68
|
(178
|
)
|
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
5,823
|
(1,757
|
)
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
27,808
|
33,263
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
33,631
|
$
|
31,506
|
(a)
|
Refer to Note 2 for additional information.
|
Supplemental cash flow information
|
Cash, cash equivalents and restricted cash reconciliation
|
Mar-19
|
Dec-18
|
Mar-18
|
Dec-17
|
||||||||||||
Cash and cash equivalents per Consolidated Balance Sheets
|
$
|
33,177
|
$
|
27,445
|
$
|
31,092
|
$
|
32,927
|
||||||||
Restricted cash included in Other assets per Consolidated Balance Sheets
|
454
|
363
|
414
|
336
|
||||||||||||
Total cash, cash equivalents and restricted cash
|
$
|
33,631
|
$
|
27,808
|
$
|
31,506
|
$
|
33,263
|
Three months ended March 31, 2019
(Millions, except per share amounts)
|
Total
|
Preferred Shares
|
Common Shares
|
Additional Paid-in Capital
|
Accumulated Other Comprehensive Loss
|
Retained Earnings
|
||||||||||||||||||
Balances as of December 31, 2018
|
$
|
22,290
|
$
|
―
|
$
|
170
|
$
|
12,218
|
$
|
(2,597
|
)
|
$
|
12,499
|
|||||||||||
Net income
|
1,550
|
―
|
―
|
―
|
―
|
1,550
|
||||||||||||||||||
Other comprehensive loss
|
(2
|
)
|
―
|
―
|
―
|
(2
|
)
|
―
|
||||||||||||||||
Repurchase of common shares
|
(1,245
|
)
|
―
|
(3
|
)
|
(267
|
)
|
―
|
(975
|
)
|
||||||||||||||
Other changes, primarily employee plans
|
(27
|
)
|
―
|
1
|
12
|
―
|
(40
|
)
|
||||||||||||||||
Cash dividends declared preferred Series C, $24.50 per share
|
(21
|
)
|
―
|
―
|
―
|
―
|
(21
|
)
|
||||||||||||||||
Cash dividends declared common, $0.39 per share
|
(327
|
)
|
―
|
―
|
―
|
―
|
(327
|
)
|
||||||||||||||||
Balances as of March 31, 2019
|
$
|
22,218
|
$
|
―
|
$
|
168
|
$
|
11,963
|
$
|
(2,599
|
)
|
$
|
12,686
|
Three months ended March 31, 2018
(Millions, except per share amounts)
|
Total
|
Preferred Shares
|
Common Shares
|
Additional Paid-in Capital
|
Accumulated Other Comprehensive Loss
|
Retained Earnings
|
||||||||||||||||||
Balances as of December 31, 2017
|
$
|
18,261
|
$
|
―
|
$
|
172
|
$
|
12,210
|
$
|
(2,428
|
)
|
$
|
8,307
|
|||||||||||
Net income
|
1,634
|
―
|
―
|
―
|
―
|
1,634
|
||||||||||||||||||
Other comprehensive income
|
47
|
―
|
―
|
―
|
47
|
―
|
||||||||||||||||||
Repurchase of common shares
|
―
|
―
|
―
|
―
|
―
|
―
|
||||||||||||||||||
Other changes, primarily employee plans
|
(7
|
)
|
―
|
―
|
15
|
―
|
(22
|
)
|
||||||||||||||||
Cash dividends declared preferred Series C, $24.50 per share
|
(21
|
)
|
―
|
―
|
―
|
―
|
(21
|
)
|
||||||||||||||||
Cash dividends declared common, $0.35 per share
|
(301
|
)
|
―
|
―
|
―
|
―
|
(301
|
)
|
||||||||||||||||
Balances as of March 31, 2018
|
$
|
19,613
|
$
|
―
|
$
|
172
|
$
|
12,225
|
$
|
(2,381
|
)
|
$
|
9,597
|
(Millions)
|
2019
|
2018
|
||||||
Global Consumer Services Group(a)
|
$
|
67,938
|
$
|
69,458
|
||||
Global Commercial Services
|
13,057
|
12,396
|
||||||
Card Member loans
|
80,995
|
81,854
|
||||||
Less: Reserve for losses
|
2,121
|
2,134
|
||||||
Card Member loans, net
|
$
|
78,874
|
$
|
79,720
|
||||
Other loans, net(b)
|
$
|
3,965
|
$
|
3,676
|
(a) |
Includes approximately $31.5 billion and $33.2 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2019 and December 31, 2018, respectively.
|
(b) |
Other loans primarily represent consumer and commercial non-card financing products. Other loans are presented net of reserves for losses of $129 million and $124 million as of March 31, 2019 and December 31, 2018, respectively.
|
(Millions)
|
2019
|
2018
|
||||||
Global Consumer Services Group(a)
|
$
|
19,929
|
$
|
21,455
|
||||
Global Commercial Services
|
36,906
|
34,438
|
||||||
Card Member receivables
|
56,835
|
55,893
|
||||||
Less: Reserve for losses
|
608
|
573
|
||||||
Card Member receivables, net
|
$
|
56,227
|
$
|
55,320
|
||||
Other receivables, net(b)
|
$
|
3,128
|
$
|
2,907
|
(a) |
Includes $7.8 billion and $8.5 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31, 2019 and December 31, 2018, respectively.
|
(b) |
Other receivables primarily represent amounts related to (i) Global Network Services partners for items such as royalty and franchise fees, (ii) tax-related receivables, (iii) certain merchants for billed discount revenue, and (iv) loyalty coalition partners for points issued, as well as program participation and servicing fees. Other receivables are presented net of reserves for losses of $25 million as of both March 31, 2019 and December 31, 2018.
|
2019 (Millions)
|
Current
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90+ Days Past Due
|
Total
|
|||||||||||||||
Card Member Loans:
|
||||||||||||||||||||
Global Consumer Services Group
|
$
|
66,916
|
$
|
286
|
$
|
216
|
$
|
520
|
$
|
67,938
|
||||||||||
Global Commercial Services
|
||||||||||||||||||||
Global Small Business Services
|
12,824
|
53
|
38
|
76
|
12,991
|
|||||||||||||||
Global Corporate Payments(a)
|
(b)
|
(b)
|
(b)
|
―
|
66
|
|||||||||||||||
Card Member Receivables:
|
||||||||||||||||||||
Global Consumer Services Group
|
19,667
|
85
|
58
|
119
|
19,929
|
|||||||||||||||
Global Commercial Services
|
||||||||||||||||||||
Global Small Business Services
|
$
|
17,061
|
$
|
105
|
$
|
62
|
$
|
119
|
$
|
17,347
|
||||||||||
Global Corporate Payments(a)
|
(b)
|
(b)
|
(b)
|
$
|
125
|
$
|
19,559
|
2018 (Millions)
|
Current
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90+ Days Past Due
|
Total
|
|||||||||||||||
Card Member Loans:
|
||||||||||||||||||||
Global Consumer Services Group
|
$
|
68,442
|
$
|
290
|
$
|
220
|
$
|
506
|
$
|
69,458
|
||||||||||
Global Commercial Services
|
||||||||||||||||||||
Global Small Business Services
|
12,195
|
51
|
32
|
73
|
12,351
|
|||||||||||||||
Global Corporate Payments(a)
|
(b)
|
(b)
|
(b)
|
―
|
45
|
|||||||||||||||
Card Member Receivables:
|
||||||||||||||||||||
Global Consumer Services Group
|
21,207
|
80
|
50
|
118
|
21,455
|
|||||||||||||||
Global Commercial Services
|
||||||||||||||||||||
Global Small Business Services
|
$
|
16,460
|
$
|
101
|
$
|
53
|
$
|
114
|
$
|
16,728
|
||||||||||
Global Corporate Payments(a)
|
(b)
|
(b)
|
(b)
|
$
|
129
|
$
|
17,710
|
(a) |
For Global Corporate Payments Card Member loans and receivables in Global Commercial Services (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 we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).
|
(b) |
Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.
|
2019
|
2018
|
|||||||||||||||||||||||
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:
|
||||||||||||||||||||||||
Global Consumer Services Group
|
2.3
|
%
|
2.8
|
%
|
1.5
|
%
|
2.0
|
%
|
2.4
|
%
|
1.4
|
%
|
||||||||||||
Global Small Business Services
|
1.8
|
%
|
2.1
|
%
|
1.3
|
%
|
1.6
|
%
|
1.9
|
%
|
1.3
|
%
|
||||||||||||
Card Member Receivables:
|
||||||||||||||||||||||||
Global Consumer Services Group
|
1.7
|
%
|
1.9
|
%
|
1.3
|
%
|
1.6
|
%
|
1.7
|
%
|
1.4
|
%
|
||||||||||||
Global Small Business Services
|
1.9
|
%
|
2.1
|
%
|
1.6
|
%
|
1.7
|
%
|
1.9
|
%
|
1.8
|
%
|
2019
|
2018
|
|||||||||||||||
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
|
0.08
|
%
|
0.6
|
%
|
0.10
|
%
|
0.8
|
%
|
(a) |
We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented.
|
As of March 31, 2019
|
||||||||||||||||||||||||||||
Accounts Classified as a TDR(c)
|
||||||||||||||||||||||||||||
2019 (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:
|
||||||||||||||||||||||||||||
Global Consumer Services Group(f)
|
$
|
348
|
$
|
250
|
$
|
354
|
$
|
137
|
$
|
1,089
|
$
|
972
|
$
|
93
|
||||||||||||||
Global Commercial Services
|
43
|
49
|
67
|
30
|
189
|
176
|
15
|
|||||||||||||||||||||
Card Member Receivables:
|
||||||||||||||||||||||||||||
Global Consumer Services Group
|
―
|
―
|
35
|
12
|
47
|
47
|
3
|
|||||||||||||||||||||
Global Commercial Services
|
―
|
―
|
70
|
28
|
98
|
97
|
4
|
|||||||||||||||||||||
Total
|
$
|
391
|
$
|
299
|
$
|
526
|
$
|
207
|
$
|
1,423
|
$
|
1,292
|
$
|
115
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
Accounts Classified as a TDR(c)
|
||||||||||||||||||||||||||||
2018 (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:
|
||||||||||||||||||||||||||||
Global Consumer Services Group(f)
|
$
|
344
|
$
|
236
|
$
|
313
|
$
|
131
|
$
|
1,024
|
$
|
923
|
$
|
80
|
||||||||||||||
Global Commercial Services
|
43
|
43
|
59
|
29
|
174
|
161
|
14
|
|||||||||||||||||||||
Card Member Receivables:
|
||||||||||||||||||||||||||||
Global Consumer Services Group
|
―
|
―
|
29
|
13
|
42
|
42
|
2
|
|||||||||||||||||||||
Global Commercial Services
|
―
|
―
|
61
|
25
|
86
|
86
|
5
|
|||||||||||||||||||||
Total
|
$
|
387
|
$
|
279
|
$
|
462
|
$
|
198
|
$
|
1,326
|
$
|
1,212
|
$
|
101
|
(a) |
Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude Card Member loans classified as a TDR.
|
(b) |
Non-accrual loans not in modification programs primarily include certain Card Member loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude Card Member loans classified as a TDR.
|
(c) |
Accounts classified as a TDR include $20 million and $17 million that are over 90 days past due and accruing interest and $12 million and $6 million that are non-accruals as of March 31, 2019 and December 31, 2018, respectively.
|
(d) |
In Program TDRs include Card Member accounts that are currently enrolled in a modification program.
|
(e) |
Out of Program TDRs include $156 million and $148 million of Card Member accounts that have successfully completed a modification program and $51 million and $50 million of Card Member accounts that were not in compliance with the terms of the modification programs as of March 31, 2019 and December 31, 2018, respectively.
|
(f) |
Global Consumer Services Group (GCSG) includes balances outside the U.S. of $77 million and $69 million that are over 90 days and accruing interest and $64 million and $68 million in unpaid principal as of March 31, 2019 and December 31, 2018, respectively.
|
2019
|
2018
|
|||||||||||||||
Interest
|
Interest
|
|||||||||||||||
Average
|
Income
|
Average
|
Income
|
|||||||||||||
(Millions)
|
Balance
|
Recognized
|
Balance
|
Recognized
|
||||||||||||
Card Member Loans:
|
||||||||||||||||
Global Consumer Services Group
|
$
|
1,057
|
$
|
31
|
$
|
801
|
$
|
26
|
||||||||
Global Commercial Services
|
181
|
6
|
136
|
5
|
||||||||||||
Card Member Receivables:
|
||||||||||||||||
Global Consumer Services Group
|
45
|
―
|
27
|
―
|
||||||||||||
Global Commercial Services
|
92
|
―
|
63
|
―
|
||||||||||||
Total
|
$
|
1,375
|
$
|
37
|
$
|
1,027
|
$
|
31
|
Three Months Ended
March 31, 2019
|
||||||||||||||||
Number of
|
Outstanding
|
Average Interest
|
Average Payment
|
|||||||||||||
Accounts
|
Balances(a)
|
Rate Reduction
|
Term Extensions
|
|||||||||||||
(in thousands)
|
($ in millions)
|
(% Points)
|
(# of Months)
|
|||||||||||||
Troubled Debt Restructurings:
|
||||||||||||||||
Card Member loans
|
17
|
$
|
128
|
13
|
(b)
|
|||||||||||
Card Member receivables
|
2
|
40
|
(c)
|
27
|
||||||||||||
Total
|
19
|
$
|
168
|
Three Months Ended
March 31, 2018
|
||||||||||||||||
Number of
|
Outstanding
|
Average Interest
|
Average Payment
|
|||||||||||||
Accounts
|
Balances(a)
|
Rate Reduction
|
Term Extensions
|
|||||||||||||
(in thousands)
|
($ in millions)
|
(% Points)
|
(# of Months)
|
|||||||||||||
Troubled Debt Restructurings:
|
||||||||||||||||
Card Member loans
|
11
|
$
|
81
|
11
|
(b)
|
|||||||||||
Card Member receivables
|
1
|
29
|
(c)
|
28
|
||||||||||||
Total
|
12
|
$
|
110
|
(a) |
Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. Modifications did not reduce the principal balance.
|
(b) |
For Card Member loans, there have been no payment term extensions.
|
(c) |
We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.
|
Three Months Ended March 31,
|
||||||||||||||||
2019
|
2018
|
|||||||||||||||
Number of
Accounts
|
Aggregated
Outstanding
Balances
Upon Default(a)
|
Number of
Accounts
|
Aggregated
Outstanding
Balances
Upon Default(a)
|
|||||||||||||
(thousands)
|
(millions)
|
(thousands)
|
(millions)
|
|||||||||||||
Troubled Debt Restructurings That
|
||||||||||||||||
Subsequently Defaulted:
|
||||||||||||||||
Card Member loans
|
2
|
$
|
17
|
2
|
$
|
9
|
||||||||||
Card Member receivables
|
1
|
4
|
1
|
2
|
||||||||||||
Total
|
3
|
$
|
21
|
3
|
$
|
11
|
(a) |
The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables.
|
(Millions)
|
2019
|
2018
|
||||||
Balance, January 1
|
$
|
2,134
|
$
|
1,706
|
||||
Provisions(a)
|
525
|
499
|
||||||
Net write-offs(b)
|
||||||||
Principal
|
(457
|
)
|
(358
|
)
|
||||
Interest and fees
|
(92
|
)
|
(71
|
)
|
||||
Other(c)
|
11
|
10
|
||||||
Balance, March 31
|
$
|
2,121
|
$
|
1,786
|
(a) |
Provisions for principal, interest and fee reserve components.
|
(b) |
Principal write-offs are presented less recoveries of $124 million and $106 million for the three months ended March 31, 2019 and 2018, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(15) million and $(7) million for the three months ended March 31, 2019 and 2018, respectively.
|
(c) |
Includes foreign currency translation adjustments of $6 million and $6 million and other adjustments of $5 million and $4 million for the three months ended March 31, 2019 and 2018, respectively.
|
(Millions)
|
2019
|
2018
|
||||||
Card Member loans evaluated individually for impairment(a)
|
$
|
588
|
$
|
532
|
||||
Related reserves(a)
|
$
|
108
|
$
|
94
|
||||
Card Member loans evaluated collectively for impairment(b)
|
$
|
80,407
|
$
|
81,322
|
||||
Related reserves(b)
|
$
|
2,013
|
$
|
2,040
|
(a) |
Represents loans modified as a TDR and related reserves.
|
(b) |
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.
|
(Millions)
|
2019
|
2018
|
||||||
Balance, January 1
|
$
|
573
|
$
|
521
|
||||
Provisions(a)
|
253
|
242
|
||||||
Net write-offs(b)
|
(216
|
)
|
(199
|
)
|
||||
Other(c)
|
(2
|
)
|
1
|
|||||
Balance, March 31
|
$
|
608
|
$
|
565
|
(a) |
Provisions for principal and fee reserve components.
|
(b) |
Net write-offs are presented less recoveries of $91 million and $90 million for the three months ended March 31, 2019 and 2018, respectively. Amounts include net (write-offs) recoveries from TDRs of $(4) million and $2 million, for the three months ended March 31, 2019 and 2018, respectively.
|
(c) |
Includes foreign currency translation adjustments of $3 million and $10 million and other adjustments of $(5) million and $(9) million for the three months ended March 31, 2019 and 2018, respectively.
|
(Millions)
|
2019
|
2018
|
||||||
Card Member receivables evaluated individually for impairment(a)
|
$
|
145
|
$
|
128
|
||||
Related reserves(a)
|
$
|
7
|
$
|
7
|
||||
Card Member receivables evaluated collectively for impairment
|
$
|
56,690
|
$
|
55,765
|
||||
Related reserves(b)
|
$
|
601
|
$
|
566
|
(a) |
Represents receivables modified as a TDR and related reserves.
|
(b) |
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.
|
2019
|
2018
|
|||||||||||||||||||||||||||||||
Gross
|
Gross
|
Estimated
|
Gross
|
Gross
|
Estimated
|
|||||||||||||||||||||||||||
Description of Securities
|
Unrealized
|
Unrealized
|
Fair
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||||||||||||||||||
(Millions)
|
Cost
|
Gains
|
Losses
|
Value
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||||||||||||||
Available-for-sale debt securities:
|
||||||||||||||||||||||||||||||||
State and municipal obligations
|
$
|
342
|
$
|
6
|
$
|
(1
|
)
|
$
|
347
|
$
|
594
|
$
|
4
|
$
|
(2
|
)
|
$
|
596
|
||||||||||||||
U.S. Government agency obligations
|
10
|
―
|
―
|
10
|
10
|
―
|
―
|
10
|
||||||||||||||||||||||||
U.S. Government treasury obligations
|
5,404
|
14
|
(9
|
)
|
5,409
|
3,452
|
5
|
(17
|
)
|
3,440
|
||||||||||||||||||||||
Corporate debt securities
|
29
|
―
|
―
|
29
|
28
|
―
|
―
|
28
|
||||||||||||||||||||||||
Mortgage-backed securities(a)
|
48
|
1
|
―
|
49
|
50
|
1
|
―
|
51
|
||||||||||||||||||||||||
Foreign government bonds and obligations
|
565
|
1
|
―
|
566
|
474
|
―
|
―
|
474
|
||||||||||||||||||||||||
Equity securities(b)
|
50
|
―
|
(3
|
)
|
47
|
51
|
―
|
(3
|
)
|
48
|
||||||||||||||||||||||
Total
|
$
|
6,448
|
$
|
22
|
$
|
(13
|
)
|
$
|
6,457
|
$
|
4,659
|
$
|
10
|
$
|
(22
|
)
|
$
|
4,647
|
(a) |
Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
|
(b) |
Equity securities comprise investments in common stock and mutual funds.
|
2019
|
2018
|
|||||||||||||||||||||||||||||||
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
|
$
|
―
|
$
|
―
|
$
|
52
|
$
|
(1
|
)
|
$
|
―
|
$
|
―
|
$
|
82
|
$
|
(1
|
)
|
||||||||||||||
U.S. Government treasury obligations
|
―
|
―
|
998
|
(9
|
)
|
224
|
(2
|
)
|
791
|
(15
|
)
|
|||||||||||||||||||||
Total
|
$
|
―
|
$
|
―
|
$
|
1,050
|
$
|
(10
|
)
|
$
|
224
|
$
|
(2
|
)
|
$
|
873
|
$
|
(16
|
)
|
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
|
|||||||||||||||||||||||||||
2019:
|
||||||||||||||||||||||||||||||||||||
90%–100%
|
―
|
$
|
―
|
$
|
―
|
26
|
$
|
1,050
|
$
|
(10
|
)
|
26
|
$
|
1,050
|
$
|
(10
|
)
|
|||||||||||||||||||
Total as of March 31, 2019
|
―
|
$
|
―
|
$
|
―
|
26
|
$
|
1,050
|
$
|
(10
|
)
|
26
|
$
|
1,050
|
$
|
(10
|
)
|
2018:
|
||||||||||||||||||||||||||||||||||||
90%–100%
|
2
|
$
|
224
|
$
|
(2
|
)
|
29
|
$
|
873
|
$
|
(16
|
)
|
31
|
$
|
1,097
|
$
|
(18
|
)
|
||||||||||||||||||
Total as of December 31, 2018
|
2
|
$
|
224
|
$
|
(2
|
)
|
29
|
$
|
873
|
$
|
(16
|
)
|
31
|
$
|
1,097
|
$
|
(18
|
)
|
Estimated
|
||||||||
(Millions)
|
Cost
|
Fair Value
|
||||||
Due within 1 year
|
$
|
4,599
|
$
|
4,600
|
||||
Due after 1 year but within 5 years
|
1,315
|
1,319
|
||||||
Due after 5 years but within 10 years
|
179
|
181
|
||||||
Due after 10 years
|
305
|
310
|
||||||
Total
|
$
|
6,398
|
$
|
6,410
|
(Millions)
|
2019
|
2018
|
||||||
Lending Trust
|
$
|
83
|
$
|
67
|
||||
Charge Trust
|
1
|
3
|
||||||
Total
|
$
|
84
|
$
|
70
|
(Millions)
|
2019
|
2018
|
||||||
U.S.:
|
||||||||
Interest-bearing
|
$
|
72,110
|
$
|
69,144
|
||||
Non-interest-bearing (includes Card Member credit balances of: 2019, $334; 2018, $376)
|
368
|
412
|
||||||
Non-U.S.:
|
||||||||
Interest-bearing
|
27
|
28
|
||||||
Non-interest-bearing (includes Card Member credit balances of: 2019, $343; 2018, $367)
|
352
|
376
|
||||||
Total customer deposits
|
$
|
72,857
|
$
|
69,960
|
(Millions)
|
2019
|
2018
|
||||||
U.S. retail deposits:
|
||||||||
Savings accounts – Direct
|
$
|
43,345
|
$
|
39,491
|
||||
Certificates of deposit:(a)
|
||||||||
Direct
|
1,107
|
817
|
||||||
Third-party (brokered)
|
12,189
|
12,667
|
||||||
Sweep accounts – Third-party (brokered)
|
15,469
|
16,169
|
||||||
Other deposits:
|
||||||||
U.S. non-interest bearing deposits
|
34
|
36
|
||||||
Non-U.S. deposits
|
36
|
37
|
||||||
Card Member credit balances ― U.S. and non-U.S.
|
677
|
743
|
||||||
Total customer deposits
|
$
|
72,857
|
$
|
69,960
|
(a) |
The weighted average remaining maturity and weighted average interest rate at issuance on the total portfolio of U.S. retail certificates of deposit issued through direct and third-party programs were 47 months and 2.40 percent, respectively, as of March 31, 2019.
|
(Millions)
|
U.S.
|
Non-U.S.
|
Total
|
|||||||||
2019
|
$
|
4,249
|
$
|
13
|
$
|
4,262
|
||||||
2020
|
4,406
|
4
|
4,410
|
|||||||||
2021
|
1,937
|
―
|
1,937
|
|||||||||
2022
|
2,292
|
―
|
2,292
|
|||||||||
2023
|
327
|
―
|
327
|
|||||||||
After 5 years
|
85
|
―
|
85
|
|||||||||
Total
|
$
|
13,296
|
$
|
17
|
$
|
13,313
|
(Millions)
|
2019
|
2018
|
||||||
U.S.
|
$
|
373
|
$
|
276
|
||||
Non-U.S.
|
7
|
9
|
||||||
Total
|
$
|
380
|
$
|
285
|
Other Assets Fair Value
|
Other Liabilities Fair Value
|
||||||||||||||||
(Millions)
|
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Derivatives designated as hedging instruments:
|
|||||||||||||||||
Fair value hedges - Interest rate contracts(a)
|
$
|
66
|
$
|
34
|
$
|
39
|
$
|
74
|
|||||||||
Net investment hedges - Foreign exchange contracts
|
42
|
222
|
138
|
61
|
|||||||||||||
Total derivatives designated as hedging instruments
|
108
|
256
|
177
|
135
|
|||||||||||||
Derivatives not designated as hedging instruments:
|
|||||||||||||||||
Foreign exchange contracts, including an embedded derivative
|
147
|
258
|
185
|
79
|
|||||||||||||
Total derivatives, gross
|
255
|
514
|
362
|
214
|
|||||||||||||
Less: Cash collateral netting(b)(c)
|
|
(46
|
)
|
(28
|
)
|
(35
|
)
|
(78
|
)
|
||||||||
Derivative asset and derivative liability netting(d)
|
(105
|
)
|
(90
|
)
|
(105
|
)
|
(90
|
)
|
|||||||||
Total derivatives, net
|
$
|
104
|
$
|
396
|
$
|
222
|
$
|
46
|
(a) |
For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.
|
(b) |
Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.
|
(c) |
We posted $70 million and $84 million as of March 31, 2019 and December 31, 2018, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances.
|
(d) |
Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
|
Gains (losses)
|
||||||||
(Millions)
|
2019
|
2018
|
||||||
Fixed-rate long-term debt
|
$
|
(160
|
)
|
$
|
210
|
|||
Derivatives designated as hedging instruments
|
158
|
(191
|
)
|
|||||
Total
|
$
|
(2
|
)
|
$
|
19
|
2019
|
2018
|
|||||||||||||||||||||||||||||||
(Millions)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||
Investment securities:(a)
|
||||||||||||||||||||||||||||||||
Equity securities
|
$
|
47
|
$
|
1
|
$
|
46
|
$
|
―
|
$
|
48
|
$
|
1
|
$
|
47
|
$
|
―
|
||||||||||||||||
Debt securities
|
6,410
|
―
|
6,410
|
―
|
4,599
|
―
|
4,599
|
―
|
||||||||||||||||||||||||
Derivatives, gross(a)
|
255
|
―
|
255
|
―
|
514
|
―
|
514
|
―
|
||||||||||||||||||||||||
Total Assets
|
6,712
|
1
|
6,711
|
―
|
5,161
|
1
|
5,160
|
―
|
||||||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||||||||||
Derivatives, gross(a)
|
362
|
―
|
362
|
―
|
214
|
―
|
214
|
―
|
||||||||||||||||||||||||
Total Liabilities
|
$
|
362
|
$
|
―
|
$
|
362
|
$
|
―
|
$
|
214
|
$
|
―
|
$
|
214
|
$
|
―
|
(a) |
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.
|
Carrying
|
Corresponding Fair Value Amount
|
|||||||||||||||||||
2019 (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)
|
$
|
33
|
$
|
33
|
$
|
32
|
$
|
1
|
$
|
―
|
||||||||||
Other financial assets(b)
|
60
|
60
|
―
|
60
|
―
|
|||||||||||||||
Financial assets carried at other than fair value
|
||||||||||||||||||||
Loans, net(c)
|
83
|
83
|
―
|
―
|
83
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Financial liabilities for which carrying values equal or approximate fair value
|
88
|
88
|
―
|
88
|
―
|
|||||||||||||||
Financial liabilities carried at other than fair value
|
||||||||||||||||||||
Certificates of deposit(d)
|
13
|
13
|
―
|
13
|
―
|
|||||||||||||||
Long-term debt(c)
|
$
|
58
|
$
|
60
|
$
|
―
|
$
|
60
|
$
|
―
|
Carrying
|
Corresponding Fair Value Amount
|
|||||||||||||||||||
2018 (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
|
$
|
26
|
$
|
1
|
$
|
―
|
||||||||||
Other financial assets(b)
|
58
|
58
|
―
|
58
|
―
|
|||||||||||||||
Financial assets carried at other than fair value
|
||||||||||||||||||||
Loans, net(c)
|
83
|
84
|
―
|
―
|
84
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Financial liabilities for which carrying values equal or approximate fair value
|
81
|
81
|
―
|
81
|
―
|
|||||||||||||||
Financial liabilities carried at other than fair value
|
||||||||||||||||||||
Certificates of deposit(d)
|
13
|
13
|
―
|
13
|
―
|
|||||||||||||||
Long-term debt(c)
|
$
|
58
|
$
|
59
|
$
|
―
|
$
|
59
|
$
|
―
|
(a) |
Level 2 amounts reflect time deposits and short-term investments.
|
(b) |
Includes Card Member receivables (including fair values of Card Member receivables of $7.7 billion and $8.5 billion held by a consolidated VIE as of March 31, 2019 and December 31, 2018, respectively), Other receivables, restricted cash and other miscellaneous assets.
|
(c) |
Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $31.3 billion and $33.0 billion as of March 31, 2019 and December 31, 2018, respectively, and the fair values of Long-term debt were $19.6 billion and $19.4 billion as of March 31, 2019 and December 31, 2018, respectively.
|
(d) |
Presented as a component of Customer deposits on the Consolidated Balance Sheets.
|
2019 (Millions), net of tax
|
Net Unrealized Gains (Losses) on Debt Securities
|
Foreign Currency Translation Adjustment Gains (Losses)
|
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)
|
Accumulated Other Comprehensive (Loss) Income
|
||||||||||||
Balances as of December 31, 2018
|
$
|
(8
|
)
|
$
|
(2,133
|
)
|
$
|
(456
|
)
|
$
|
(2,597
|
)
|
||||
Net unrealized gains
|
17
|
―
|
―
|
17
|
||||||||||||
Net translation gains on investments in foreign operations
|
―
|
170
|
―
|
170
|
||||||||||||
Net losses related to hedges of investments in foreign operations
|
―
|
(162
|
)
|
―
|
(162
|
)
|
||||||||||
Pension and other postretirement benefits
|
―
|
―
|
(27
|
)
|
(27
|
)
|
||||||||||
Net change in accumulated other comprehensive income (loss)
|
17
|
8
|
(27
|
)
|
(2
|
)
|
||||||||||
Balances as of March 31, 2019
|
$
|
9
|
$
|
(2,125
|
)
|
$
|
(483
|
)
|
$
|
(2,599
|
)
|
2018 (Millions), net of tax
|
Net Unrealized Gains (Losses) on Investment Securities
|
Foreign Currency Translation Adjustment Gains (Losses)
|
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)
|
Accumulated Other Comprehensive (Loss) Income
|
||||||||||||
Balances as of December 31, 2017
|
$
|
―
|
$
|
(1,961
|
)
|
$
|
(467
|
)
|
$
|
(2,428
|
)
|
|||||
Net unrealized losses
|
(13
|
)
|
―
|
―
|
(13
|
)
|
||||||||||
Net translation gains on investments in foreign operations
|
―
|
192
|
―
|
192
|
||||||||||||
Net losses related to hedges of investments in foreign operations
|
―
|
(162
|
)
|
―
|
(162
|
)
|
||||||||||
Pension and other postretirement benefits
|
―
|
―
|
28
|
28
|
||||||||||||
Other(a)
|
2
|
―
|
―
|
2
|
||||||||||||
Net change in accumulated other comprehensive (loss) income
|
(11
|
)
|
30
|
28
|
47
|
|||||||||||
Balances as of March 31, 2018
|
$
|
(11
|
)
|
$
|
(1,931
|
)
|
$
|
(439
|
)
|
$
|
(2,381
|
)
|
(a) |
Represents unrealized gains and losses pertaining to equity securities moved from AOCI to retained earnings as of January 1, 2018, due to the prospective adoption of the financial instruments guidance effective January 1, 2018.
|
Tax expense (benefit)
|
||||||||
(Millions)
|
2019
|
2018
|
||||||
Net unrealized investment securities
|
$
|
4
|
$
|
(3
|
)
|
|||
Net translation on investments in foreign operations
|
14
|
2
|
||||||
Net hedges of investments in foreign operations
|
(50
|
)
|
(54
|
)
|
||||
Pension and other postretirement benefits
|
(11
|
)
|
3
|
|||||
Total tax impact
|
$
|
(43
|
)
|
$
|
(52
|
)
|
Gains (losses) recognized in earnings
|
|||||||||
Amount
|
|||||||||
Description (Millions)
|
Income Statement Line Item
|
2019
|
2018
|
||||||
Foreign currency translation adjustments
|
|||||||||
Reclassification of translation adjustments and related hedges
|
Other expenses
|
$
|
―
|
$
|
1
|
||||
Related income tax
|
Income tax provision
|
―
|
(1
|
)
|
|||||
Reclassification of foreign currency translation adjustments
|
$
|
―
|
$
|
―
|
(Millions)
|
2019
|
2018
|
||||||
Fees charged to Card Members:
|
||||||||
Delinquency fees
|
$
|
251
|
$
|
242
|
||||
Foreign currency conversion fee revenue
|
230
|
225
|
||||||
Other customer fees:
|
||||||||
Loyalty coalition-related fees
|
114
|
111
|
||||||
Travel commissions and fees
|
108
|
99
|
||||||
Service fees and other(a)
|
100
|
104
|
||||||
Total Other fees and commissions
|
$
|
803
|
$
|
781
|
(a) |
Other includes Membership Rewards program fees that are not related to contracts with customers.
|
(Millions)
|
2019
|
2018
|
||||||
Occupancy and equipment
|
$
|
508
|
$
|
520
|
||||
Professional services
|
494
|
457
|
||||||
Other(a)
|
599
|
457
|
||||||
Total Other expenses
|
$
|
1,601
|
$
|
1,434
|
(a) |
Other expense primarily includes general operating expenses, a litigation-related charge, communication expenses, Card and merchant-related fraud losses, and unrealized gains on certain equity investments.
|
(Millions, except per share amounts)
|
2019
|
2018
|
||||||
Numerator:
|
||||||||
Basic and diluted:
|
||||||||
Net income
|
$
|
1,550
|
$
|
1,634
|
||||
Preferred dividends
|
(21
|
)
|
(21
|
)
|
||||
Net income available to common shareholders
|
$
|
1,529
|
$
|
1,613
|
||||
Earnings allocated to participating share awards(a)
|
(11
|
)
|
(13
|
)
|
||||
Net income attributable to common shareholders
|
$
|
1,518
|
$
|
1,600
|
||||
Denominator:(a)
|
||||||||
Basic: Weighted-average common stock
|
841
|
859
|
||||||
Add: Weighted-average stock options(b)
|
2
|
2
|
||||||
Diluted
|
843
|
861
|
||||||
Basic EPS
|
$
|
1.81
|
$
|
1.86
|
||||
Diluted EPS
|
$
|
1.80
|
$
|
1.86
|
(a) |
Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.
|
(b) |
The dilutive effect of unexercised stock options excludes from the computation of EPS 0.9 million and 0.6 million of options for the three months ended March 31, 2019 and 2018, respectively, because inclusion of the options would have been anti-dilutive.
|
2019 (Millions, except where indicated)
|
GCSG
|
GCS
|
GMNS
|
Corporate & Other(a)
|
Consolidated
|
|||||||||||||||
Total non-interest revenues
|
$
|
3,741
|
$
|
3,020
|
$
|
1,525
|
$
|
19
|
$
|
8,305
|
||||||||||
Revenue from contracts with customers(b)
|
2,578
|
2,607
|
1,503
|
9
|
6,697
|
|||||||||||||||
Interest income
|
2,272
|
454
|
9
|
219
|
2,954
|
|||||||||||||||
Interest expense
|
459
|
241
|
(93
|
)
|
288
|
895
|
||||||||||||||
Total revenues net of interest expense
|
5,554
|
3,233
|
1,627
|
(50
|
)
|
10,364
|
||||||||||||||
Net income (loss)
|
$
|
821
|
$
|
586
|
$
|
631
|
$
|
(488
|
)
|
$
|
1,550
|
|||||||||
Total assets (billions)
|
$
|
99
|
$
|
54
|
$
|
22
|
$
|
22
|
$
|
197
|
||||||||||
2018 (Millions, except where indicated)
|
GCSG
|
GCS
|
GMNS
|
Corporate & Other(a)
|
Consolidated
|
|||||||||||||||
Total non-interest revenues
|
$
|
3,491
|
$
|
2,838
|
$
|
1,532
|
$
|
16
|
$
|
7,877
|
||||||||||
Revenue from contracts with customers(b)
|
2,438
|
2,454
|
1,491
|
4
|
6,387
|
|||||||||||||||
Interest income
|
1,949
|
377
|
9
|
127
|
2,462
|
|||||||||||||||
Interest expense
|
327
|
171
|
(59
|
)
|
182
|
621
|
||||||||||||||
Total revenues net of interest expense
|
5,113
|
3,044
|
1,600
|
(39
|
)
|
9,718
|
||||||||||||||
Net income (loss)
|
$
|
826
|
$
|
546
|
$
|
516
|
$
|
(254
|
)
|
$
|
1,634
|
|||||||||
Total assets (billions)
|
$
|
91
|
$
|
51
|
$
|
20
|
$
|
18
|
$
|
180
|
(a) |
Corporate & Other includes adjustments and eliminations for intersegment activity.
|
(b) |
Includes discount revenue, certain other fees and commissions and other revenues from customers.
|
ITEM 2. |
• |
Network services
|
• |
Discount revenue, our largest revenue source, primarily represents the amount we earn on transactions occurring at merchants that have entered into a card acceptance agreement with us, or a Global Network Services (GNS) partner or other third-party merchant acquirer, for facilitating transactions between the merchants and Card Members;
|
• |
Interest on loans, principally represents interest income earned on outstanding balances;
|
• |
Net card fees, represent revenue earned from annual card membership fees, which vary based on the type of card and the number of cards for each account;
|
• |
Other fees and commissions, primarily represent Card Member delinquency fees, foreign currency conversion fees charged to Card Members, loyalty coalition-related fees, travel commissions and fees, service fees earned from merchants, and Membership Rewards program fees; and
|
• |
Other revenue, primarily represents revenues arising from contracts with partners of our GNS business (including commissions and signing fees less issuer rate payments), cross-border Card Member spending, ancillary merchant-related fees, insurance premiums earned from Card Members, earnings from equity method investments (including the GBT JV), and prepaid card and Travelers Cheque-related revenue.
|
Three Months Ended
|
||||||||||||||||
March 31,
|
Change
|
|||||||||||||||
(Millions, except percentages and per share amounts)
|
2019
|
2018
|
2019 vs. 2018
|
|||||||||||||
Total revenues net of interest expense
|
$
|
10,364
|
$
|
9,718
|
$
|
646
|
7
|
%
|
||||||||
Provisions for losses
|
809
|
775
|
34
|
4
|
||||||||||||
Expenses
|
7,597
|
6,861
|
736
|
11
|
||||||||||||
Pretax income
|
1,958
|
2,082
|
(124
|
)
|
(6
|
)
|
||||||||||
Income tax provision
|
408
|
448
|
(40
|
)
|
(9
|
)
|
||||||||||
Net income
|
1,550
|
1,634
|
(84
|
)
|
(5
|
)
|
||||||||||
Earnings per common share — diluted(a)
|
$
|
1.80
|
$
|
1.86
|
$
|
(0.06
|
)
|
(3
|
)%
|
|||||||
Return on average equity(b)
|
31.9
|
%
|
15.2
|
%
|
||||||||||||
Effective tax rate
|
20.8
|
%
|
21.5
|
%
|
(a) |
Earnings per common share — diluted was reduced by the impact of (i) earnings allocated to participating share awards of $11 million and $13 million for the three months ended March 31, 2019 and 2018, respectively, and (ii) dividends on preferred shares of $21 million for both the three months ended March 31, 2019 and 2018.
|
(b) |
Return on average equity (ROE) is computed by dividing (i) one-year period net income ($6.8 billion and $3.1 billion for March 31, 2019 and 2018, respectively) by (ii) one-year average total shareholders’ equity ($21.5 billion and $20.5 billion for March 31, 2019 and 2018, respectively).
|
Three Months Ended
|
||||||||||||||||
March 31,
|
Change
|
|||||||||||||||
(Millions, except percentages)
|
2019
|
2018
|
2019 vs. 2018
|
|||||||||||||
Discount revenue
|
$
|
6,195
|
$
|
5,889
|
$
|
306
|
5
|
%
|
||||||||
Net card fees
|
944
|
830
|
114
|
14
|
||||||||||||
Other fees and commissions
|
803
|
781
|
22
|
3
|
||||||||||||
Other
|
363
|
377
|
(14
|
)
|
(4
|
)
|
||||||||||
Total non-interest revenues
|
8,305
|
7,877
|
428
|
5
|
||||||||||||
Total interest income
|
2,954
|
2,462
|
492
|
20
|
||||||||||||
Total interest expense
|
895
|
621
|
274
|
44
|
||||||||||||
Net interest income
|
2,059
|
1,841
|
218
|
12
|
||||||||||||
Total revenues net of interest expense
|
$
|
10,364
|
$
|
9,718
|
$
|
646
|
7
|
%
|
Three Months Ended
|
||||||||||||||||
March 31,
|
Change
|
|||||||||||||||
(Millions, except percentages)
|
2019
|
2018
|
2019 vs. 2018
|
|||||||||||||
Charge card
|
$
|
253
|
$
|
242
|
$
|
11
|
5
|
%
|
||||||||
Card Member loans
|
525
|
499
|
26
|
5
|
||||||||||||
Other
|
31
|
34
|
(3
|
)
|
(9
|
)
|
||||||||||
Total provisions for losses
|
$
|
809
|
$
|
775
|
$
|
34
|
4
|
%
|
Three Months Ended
|
||||||||||||||||
March 31,
|
Change
|
|||||||||||||||
(Millions, except percentages)
|
2019
|
2018
|
2019 vs. 2018
|
|||||||||||||
Marketing and business development
|
$
|
1,573
|
$
|
1,345
|
$
|
228
|
17
|
%
|
||||||||
Card Member rewards
|
2,451
|
2,347
|
104
|
4
|
||||||||||||
Card Member services
|
550
|
409
|
141
|
34
|
||||||||||||
Total marketing, business development, rewards and Card Member services
|
4,574
|
4,101
|
473
|
12
|
||||||||||||
Salaries and employee benefits
|
1,422
|
1,326
|
96
|
7
|
||||||||||||
Other, net
|
1,601
|
1,434
|
167
|
12
|
||||||||||||
Total expenses
|
$
|
7,597
|
$
|
6,861
|
$
|
736
|
11
|
%
|
As of or for the
|
Change
|
|||||||||||
Three Months Ended
|
2019
|
|||||||||||
March 31,
|
vs.
|
|||||||||||
2019
|
2018
|
2018
|
||||||||||
Billed business: (billions)
|
||||||||||||
U.S.
|
$
|
195.5
|
$
|
182.5
|
7
|
%
|
||||||
Outside the U.S.
|
100.2
|
101.3
|
(1
|
)
|
||||||||
Total
|
$
|
295.7
|
$
|
283.8
|
4
|
|||||||
Proprietary
|
$
|
253.3
|
$
|
236.9
|
7
|
|||||||
GNS
|
42.4
|
46.9
|
(10
|
)
|
||||||||
Total
|
$
|
295.7
|
$
|
283.8
|
4
|
|||||||
Cards-in-force: (millions)
|
||||||||||||
U.S.
|
54.1
|
51.3
|
5
|
|||||||||
Outside the U.S.
|
59.8
|
62.9
|
(5
|
)
|
||||||||
Total
|
113.9
|
114.2
|
―
|
|||||||||
Proprietary
|
69.7
|
66.4
|
5
|
|||||||||
GNS
|
44.2
|
47.8
|
(8
|
)
|
||||||||
Total
|
113.9
|
114.2
|
―
|
|||||||||
Basic cards-in-force: (millions)
|
||||||||||||
U.S.
|
42.5
|
40.4
|
5
|
|||||||||
Outside the U.S.
|
49.9
|
52.4
|
(5
|
)
|
||||||||
Total
|
92.4
|
92.8
|
―
|
|||||||||
Average proprietary basic Card Member spending: (dollars)
|
||||||||||||
U.S.
|
$
|
5,082
|
$
|
5,015
|
1
|
|||||||
Outside the U.S.
|
3,927
|
3,869
|
1
|
|||||||||
Worldwide Average
|
$
|
4,741
|
$
|
4,677
|
1
|
|||||||
Card Member loans: (billions)
|
||||||||||||
U.S.
|
$
|
70.8
|
$
|
63.9
|
11
|
|||||||
Outside the U.S.
|
10.2
|
8.9
|
15
|
|||||||||
Total
|
$
|
81.0
|
$
|
72.8
|
11
|
|||||||
Average discount rate
|
2.37
|
%
|
2.37
|
%
|
||||||||
Average fee per card (dollars)(a)
|
$
|
54
|
$
|
51
|
6
|
%
|
(a) |
Average fee per card is computed based on proprietary basic net card fees divided by average proprietary basic cards-in-force.
|
Three Months Ended
|
||||||||
March 31, 2019
|
||||||||
Year over Year
|
||||||||
Year over Year
|
Percentage Increase
|
|||||||
Percentage Increase
|
(Decrease) Assuming
|
|||||||
(Decrease)
|
No Changes in FX Rates(a)
|
|||||||
Worldwide
|
||||||||
Proprietary
|
||||||||
Proprietary consumer
|
7
|
%
|
9
|
%
|
||||
Proprietary commercial
|
7
|
8
|
||||||
Total Proprietary
|
7
|
9
|
||||||
GNS
|
(10
|
)
|
(4
|
)
|
||||
Worldwide Total
|
4
|
7
|
||||||
Airline-related volume (9% of Worldwide Total)
|
1
|
5
|
||||||
U.S.
|
||||||||
Proprietary
|
||||||||
Proprietary consumer
|
7
|
|||||||
Proprietary commercial
|
7
|
|||||||
Total Proprietary
|
7
|
|||||||
U.S. Total
|
7
|
|||||||
T&E-related volume (26% of U.S. Total)
|
5
|
|||||||
Non-T&E-related volume (74% of U.S. Total)
|
7
|
|||||||
Airline-related volume (8% of U.S. Total)
|
5
|
|||||||
Outside the U.S.
|
||||||||
Proprietary
|
||||||||
Proprietary consumer
|
8
|
16
|
||||||
Proprietary commercial
|
5
|
13
|
||||||
Total Proprietary
|
7
|
15
|
||||||
Outside the U.S. Total
|
(1
|
)
|
6
|
|||||
Japan, Asia Pacific & Australia
|
(2
|
)
|
4
|
|||||
Latin America & Canada
|
1
|
11
|
||||||
Europe, the Middle East & Africa
|
(2
|
)
|
7
|
(a) |
The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared).
|
As of or for the
|
Change
|
|||||||||||
Three Months Ended
|
2019
|
|||||||||||
March 31,
|
vs.
|
|||||||||||
(Millions, except percentages and where indicated)
|
2019
|
2018
|
2018
|
|||||||||
Worldwide Card Member loans:
|
||||||||||||
Total loans (billions)
|
$
|
81.0
|
$
|
72.8
|
11
|
%
|
||||||
Loss reserves:
|
||||||||||||
Beginning balance
|
$
|
2,134
|
$
|
1,706
|
25
|
|||||||
Provisions - principal, interest and fees
|
525
|
499
|
5
|
|||||||||
Net write-offs — principal less recoveries
|
(457
|
)
|
(358
|
)
|
28
|
|||||||
Net write-offs — interest and fees less recoveries
|
(92
|
)
|
(71
|
)
|
30
|
|||||||
Other(a)
|
11
|
10
|
10
|
|||||||||
Ending balance
|
$
|
2,121
|
$
|
1,786
|
19
|
|||||||
Ending reserves — principal
|
$
|
1,999
|
$
|
1,691
|
18
|
|||||||
Ending reserves — interest and fees
|
$
|
122
|
$
|
95
|
28
|
|||||||
% of loans
|
2.6
|
%
|
2.5
|
%
|
||||||||
% of past due
|
178
|
%
|
174
|
%
|
||||||||
Average loans (billions)
|
$
|
80.6
|
$
|
72.7
|
11
|
|||||||
Net write-off rate — principal only(b)
|
2.3
|
%
|
2.0
|
%
|
||||||||
Net write-off rate — principal, interest and fees(b)
|
2.7
|
%
|
2.4
|
%
|
||||||||
30+ days past due as a % of total(b)
|
1.5
|
%
|
1.4
|
%
|
||||||||
Worldwide Card Member receivables:
|
||||||||||||
Total receivables (billions)
|
$
|
56.8
|
$
|
54.2
|
5
|
|||||||
Loss reserves:
|
||||||||||||
Beginning balance
|
$
|
573
|
$
|
521
|
10
|
|||||||
Provisions - principal and fees
|
253
|
242
|
5
|
|||||||||
Net write-offs - principal and fees less recoveries
|
(216
|
)
|
(199
|
)
|
9
|
|||||||
Other(a)
|
(2
|
)
|
1
|
#
|
||||||||
Ending balance
|
$
|
608
|
$
|
565
|
8
|
%
|
||||||
% of receivables
|
1.1
|
%
|
1.0
|
%
|
||||||||
Net write-off rate — principal only(b)
|
1.8
|
%
|
1.6
|
%
|
||||||||
Net write-off rate — principal and fees(b)
|
2.0
|
%
|
1.8
|
%
|
||||||||
30+ days past due as a % of total(b)
|
1.5
|
%
|
1.5
|
%
|
||||||||
Net loss ratio as a % of charge volume — GCP(c)
|
0.08
|
%
|
0.10
|
%
|
||||||||
90+ days past billing as a % of total — GCP(c)
|
0.6
|
%
|
0.8
|
%
|
(a) |
Other includes foreign currency translation adjustments.
|
(b) |
We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for losses, a net write-off rate including principal, interest and/or fees is also presented. The net write-off rates and 30+ days past due as a percentage of total for Card Member receivables relate to Global Consumer Services Group (GCSG) and Global Small Business Services (GSBS) Card Member receivables.
|
(c) |
Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. GCP delinquency data for periods other than 90+ days past billing is not available due to system constraints.
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Millions, except percentages and where indicated)
|
2019
|
2018
|
||||||
Net interest income
|
$
|
2,059
|
$
|
1,841
|
||||
Exclude:
|
||||||||
Interest expense not attributable to our Card Member loan portfolio(a)
|
453
|
302
|
||||||
Interest income not attributable to our Card Member loan portfolio(b)
|
(335
|
)
|
(213
|
)
|
||||
Adjusted net interest income(c)
|
$
|
2,177
|
$
|
1,930
|
||||
Average Card Member loans (billions)
|
$
|
80.6
|
$
|
72.7
|
||||
Net interest income divided by average Card Member loans(c)
|
10.2
|
%
|
10.1
|
%
|
||||
Net interest yield on average Card Member loans(c)
|
10.9
|
%
|
10.8
|
%
|
(a) |
Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
|
(b) |
Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.
|
(c) |
Adjusted net interest income and net interest yield on average Card Member loans are non-GAAP measures. Refer to “Glossary of Selected Terminology” for the definitions of these terms. We believe adjusted net interest income is useful to investors because it represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio. Net interest yield on average Card Member loans reflects adjusted net interest income divided by average Card Member loans, computed on an annualized basis. Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans.
|
Three Months Ended
|
||||||||||||||||
March 31,
|
Change
|
|||||||||||||||
(Millions, except percentages)
|
2019
|
2018
|
2019 vs. 2018
|
|||||||||||||
Revenues
|
||||||||||||||||
Non-interest revenues
|
$
|
3,741
|
$
|
3,491
|
$
|
250
|
7
|
%
|
||||||||
Interest income
|
2,272
|
1,949
|
323
|
17
|
||||||||||||
Interest expense
|
459
|
327
|
132
|
40
|
||||||||||||
Net interest income
|
1,813
|
1,622
|
191
|
12
|
||||||||||||
Total revenues net of interest expense
|
5,554
|
5,113
|
441
|
9
|
||||||||||||
Provisions for losses
|
552
|
530
|
22
|
4
|
||||||||||||
Total revenues net of interest expense after provisions for losses
|
5,002
|
4,583
|
419
|
9
|
||||||||||||
Expenses
|
||||||||||||||||
Marketing, business development, rewards and Card Member services
|
2,785
|
2,446
|
339
|
14
|
||||||||||||
Salaries and employee benefits and other operating expenses
|
1,177
|
1,089
|
88
|
8
|
||||||||||||
Total expenses
|
3,962
|
3,535
|
427
|
12
|
||||||||||||
Pretax segment income
|
1,040
|
1,048
|
(8
|
)
|
(1
|
)
|
||||||||||
Income tax provision
|
219
|
222
|
(3
|
)
|
(1
|
)
|
||||||||||
Segment income
|
$
|
821
|
$
|
826
|
$
|
(5
|
)
|
(1
|
)%
|
|||||||
Effective tax rate
|
21.1
|
%
|
21.2
|
%
|
Three Months Ended
|
||||||||||||
March 31,
|
Change
|
|||||||||||
(Millions, except percentages and where indicated)
|
2019
|
2018
|
2019 vs 2018
|
|||||||||
Proprietary billed business: (billions)
|
||||||||||||
U.S.
|
$
|
92.1
|
$
|
86.0
|
7
|
%
|
||||||
Outside the U.S.
|
35.9
|
33.3
|
8
|
|||||||||
Total
|
$
|
128.0
|
$
|
119.3
|
7
|
|||||||
Proprietary cards-in-force:
|
||||||||||||
U.S.
|
38.0
|
36.1
|
5
|
|||||||||
Outside the U.S.
|
17.1
|
16.2
|
6
|
|||||||||
Total
|
55.1
|
52.3
|
5
|
|||||||||
Proprietary basic cards-in-force:
|
||||||||||||
U.S.
|
27.1
|
25.8
|
5
|
|||||||||
Outside the U.S.
|
11.9
|
11.2
|
6
|
|||||||||
Total
|
39.0
|
37.0
|
5
|
|||||||||
Average proprietary basic Card Member spending: (dollars)
|
||||||||||||
U.S.
|
$
|
3,402
|
$
|
3,371
|
1
|
|||||||
Outside the U.S.
|
$
|
3,052
|
$
|
3,001
|
2
|
|||||||
Average
|
$
|
3,296
|
$
|
3,259
|
1
|
|||||||
Total segment assets (billions)
|
$
|
98.5
|
$
|
90.7
|
9
|
|||||||
Card Member loans:
|
||||||||||||
Total loans (billions)
|
||||||||||||
U.S.
|
$
|
58.0
|
$
|
52.7
|
10
|
|||||||
Outside the U.S.
|
9.9
|
8.6
|
15
|
|||||||||
Total
|
$
|
67.9
|
$
|
61.3
|
11
|
|||||||
Average loans (billions)
|
||||||||||||
U.S.
|
$
|
58.3
|
$
|
52.9
|
10
|
|||||||
Outside the U.S.
|
9.7
|
8.7
|
11
|
|||||||||
Total
|
$
|
68.0
|
$
|
61.6
|
10
|
%
|
||||||
Lending Credit Metrics:
|
||||||||||||
U.S.
|
||||||||||||
Net write-off rate - principal only(a)
|
2.4
|
%
|
2.0
|
%
|
||||||||
Net write-off rate - principal, interest and fees(a)
|
2.8
|
%
|
2.4
|
%
|
||||||||
30+ days past due as a % of total
|
1.5
|
%
|
1.4
|
%
|
||||||||
Outside the U.S.
|
||||||||||||
Net write-off rate - principal only(a)
|
2.2
|
%
|
2.1
|
%
|
||||||||
Net write-off rate - principal, interest and fees(a)
|
2.8
|
%
|
2.6
|
%
|
||||||||
30+ days past due as a % of total
|
1.7
|
%
|
1.6
|
%
|
||||||||
Total
|
||||||||||||
Net write-off rate – principal only(a)
|
2.3
|
%
|
2.0
|
%
|
||||||||
Net write-off rate – principal, interest and fees(a)
|
2.8
|
%
|
2.4
|
%
|
||||||||
30+ days past due as a % of total
|
1.5
|
%
|
1.4
|
%
|
As of or for the
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31,
|
Change
|
|||||||||||
(Millions, except percentages and where indicated)
|
2019
|
2018
|
2019 vs 2018
|
|||||||||
Card Member receivables: (billions)
|
||||||||||||
U.S.
|
$
|
12.7
|
$
|
11.7
|
9
|
%
|
||||||
Outside the U.S.
|
7.2
|
7.0
|
3
|
|||||||||
Total receivables
|
$
|
19.9
|
$
|
18.7
|
6
|
%
|
||||||
Charge Credit Metrics:
|
||||||||||||
U.S.
|
||||||||||||
Net write-off rate – principal only(a)
|
1.4
|
%
|
1.3
|
%
|
||||||||
Net write-off rate – principal and fees(a)
|
1.6
|
%
|
1.5
|
%
|
||||||||
30+ days past due as a % of total
|
1.2
|
%
|
1.3
|
%
|
||||||||
Outside the U.S.
|
||||||||||||
Net write-off rate – principal only(a)
|
2.2
|
%
|
2.0
|
%
|
||||||||
Net write-off rate – principal and fees(a)
|
2.4
|
%
|
2.2
|
%
|
||||||||
30+ days past due as a % of total
|
1.5
|
%
|
1.5
|
%
|
||||||||
Total
|
||||||||||||
Net write-off rate – principal only(a)
|
1.7
|
%
|
1.6
|
%
|
||||||||
Net write-off rate – principal and fees(a)
|
1.9
|
%
|
1.7
|
%
|
||||||||
30+ days past due as a % of total
|
1.3
|
%
|
1.4
|
%
|
(a) |
Refer to Table 7 footnote (b).
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Millions, except percentages and where indicated)
|
2019
|
2018
|
||||||
U.S.
|
||||||||
Net interest income
|
$
|
1,565
|
$
|
1,403
|
||||
Exclude:
|
||||||||
Interest expense not attributable to our Card Member loan portfolio(a)
|
65
|
37
|
||||||
Interest income not attributable to our Card Member loan portfolio(b)
|
(53
|
)
|
(39
|
)
|
||||
Adjusted net interest income(c)
|
$
|
1,577
|
$
|
1,401
|
||||
Average Card Member loans (billions)
|
$
|
58.3
|
$
|
52.9
|
||||
Net interest income divided by average Card Member loans(c)
|
10.7
|
%
|
10.6
|
%
|
||||
Net interest yield on average Card Member loans(c)
|
11.0
|
%
|
10.7
|
%
|
||||
Outside the U.S.
|
||||||||
Net interest income
|
$
|
248
|
$
|
218
|
||||
Exclude:
|
||||||||
Interest expense not attributable to our Card Member loan portfolio(a)
|
19
|
18
|
||||||
Interest income not attributable to our Card Member loan portfolio(b)
|
(3
|
)
|
(3
|
)
|
||||
Adjusted net interest income(c)
|
$
|
264
|
$
|
233
|
||||
Average Card Member loans (billions)
|
$
|
9.7
|
$
|
8.6
|
||||
Net interest income divided by average Card Member loans(c)
|
10.2
|
%
|
10.1
|
%
|
||||
Net interest yield on average Card Member loans(c)
|
11.1
|
%
|
11.0
|
%
|
||||
Total
|
||||||||
Net interest income
|
$
|
1,813
|
$
|
1,622
|
||||
Exclude:
|
||||||||
Interest expense not attributable to our Card Member loan portfolio(a)
|
84
|
54
|
||||||
Interest income not attributable to our Card Member loan portfolio(b)
|
(56
|
)
|
(41
|
)
|
||||
Adjusted net interest income(c)
|
$
|
1,841
|
$
|
1,635
|
||||
Average Card Member loans (billions)
|
$
|
68.0
|
$
|
61.6
|
||||
Net interest income divided by average Card Member loans(c)
|
10.7
|
%
|
10.5
|
%
|
||||
Net interest yield on average Card Member loans(c)
|
11.0
|
%
|
10.8
|
%
|
(a) |
Refer to Table 8 footnote (a).
|
(b) |
Refer to Table 8 footnote (b).
|
(c) |
Refer to Table 8 footnote (c).
|
Three Months Ended
|
||||||||||||||||
March 31,
|
||||||||||||||||
Change
|
||||||||||||||||
(Millions, except percentages)
|
2019
|
2018
|
2019 vs. 2018
|
|||||||||||||
Revenues
|
||||||||||||||||
Non-interest revenues
|
$
|
3,020
|
$
|
2,838
|
$
|
182
|
6
|
%
|
||||||||
Interest income
|
454
|
377
|
77
|
20
|
||||||||||||
Interest expense
|
241
|
171
|
70
|
41
|
||||||||||||
Net interest income
|
213
|
206
|
7
|
3
|
||||||||||||
Total revenues net of interest expense
|
3,233
|
3,044
|
189
|
6
|
||||||||||||
Provisions for losses
|
254
|
240
|
14
|
6
|
||||||||||||
Total revenues net of interest expense after provisions for losses
|
2,979
|
2,804
|
175
|
6
|
||||||||||||
Expenses
|
||||||||||||||||
Marketing, business development, rewards and Card Member services
|
1,470
|
1,374
|
96
|
7
|
||||||||||||
Salaries and employee benefits and other operating expenses
|
766
|
722
|
44
|
6
|
||||||||||||
Total expenses
|
2,236
|
2,096
|
140
|
7
|
||||||||||||
Pretax segment income
|
743
|
708
|
35
|
5
|
||||||||||||
Income tax provision
|
157
|
162
|
(5
|
)
|
(3
|
)
|
||||||||||
Segment income
|
$
|
586
|
$
|
546
|
$
|
40
|
7
|
%
|
||||||||
Effective tax rate
|
21.1
|
%
|
22.9
|
%
|
As of or for the
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31,
|
Change
|
|||||||||||
(Millions, except percentages and where indicated)
|
2019
|
2018
|
2019 vs 2018
|
|||||||||
Proprietary billed business (billions)
|
$
|
123.4
|
$
|
115.7
|
7
|
%
|
||||||
Proprietary cards-in-force
|
14.6
|
14.1
|
4
|
|||||||||
Average Card Member spending (dollars)
|
$
|
8,463
|
$
|
8,233
|
3
|
|||||||
Total segment assets (billions)
|
$
|
54.0
|
$
|
51.4
|
5
|
|||||||
Card Member loans (billions)
|
$
|
13.1
|
$
|
11.5
|
14
|
|||||||
Card Member receivables (billions)
|
$
|
36.9
|
$
|
35.5
|
4
|
|||||||
GSBS Card Member loans:
|
||||||||||||
Total loans (billions)
|
$
|
13.0
|
$
|
11.4
|
14
|
|||||||
Average loans (billions)
|
$
|
12.6
|
$
|
11.1
|
14
|
|||||||
Net write-off rate - principal only(a)
|
1.8
|
%
|
1.6
|
%
|
||||||||
Net write-off rate - principal, interest and fees(a)
|
2.1
|
%
|
1.9
|
%
|
||||||||
30+ days past due as a % of total
|
1.3
|
%
|
1.3
|
%
|
||||||||
Calculation of Net Interest Yield on Average Card Member Loans:
|
||||||||||||
Net interest income
|
$
|
213
|
$
|
206
|
||||||||
Exclude:
|
||||||||||||
Interest expense not attributable to our Card Member loan portfolio(b)
|
175
|
126
|
||||||||||
Interest income not attributable to our Card Member loan portfolio(c)
|
(52
|
)
|
(37
|
)
|
||||||||
Adjusted net interest income(d)
|
$
|
336
|
$
|
295
|
||||||||
Average Card Member loans (billions)
|
$
|
12.6
|
$
|
11.2
|
||||||||
Net interest income divided by average Card Member loans(d)
|
6.8
|
%
|
7.4
|
%
|
||||||||
Net interest yield on average Card Member loans(d)
|
10.8
|
%
|
10.7
|
%
|
||||||||
GCP Card Member receivables:
|
||||||||||||
Total receivables (billions)
|
$
|
19.6
|
$
|
19.3
|
2
|
|||||||
90+ days past billing as a % of total(e)
|
0.6
|
%
|
0.8
|
%
|
||||||||
Net loss ratio (as a % of charge volume)(f)
|
0.08
|
%
|
0.10
|
%
|
||||||||
GSBS Card Member receivables:
|
||||||||||||
Total receivables (billions)
|
$
|
17.3
|
$
|
16.2
|
7
|
%
|
||||||
Net write-off rate - principal only(a)
|
1.9
|
%
|
1.7
|
%
|
||||||||
Net write-off rate - principal and fees(a)
|
2.1
|
%
|
1.9
|
%
|
||||||||
30+ days past due as a % of total
|
1.6
|
%
|
1.8
|
%
|
(a) |
Refer to Table 7 footnote (b).
|
(b) |
Refer to Table 8 footnote (a).
|
(c) |
Refer to Table 8 footnote (b).
|
(d) |
Refer to Table 8 footnote (c).
|
(e) |
Refer to Table 7 footnote (c).
|
(f) |
Represents the ratio of GCP charge card write-offs, consisting of principal (resulting from authorized transactions) and fee components, less recoveries, on Card Member receivables expressed as a percentage of gross amounts billed to corporate Card Members.
|
Three Months Ended
|
||||||||||||||||
March 31,
|
Change
|
|||||||||||||||
(Millions, except percentages and where indicated)
|
2019
|
2018
|
2019 vs. 2018
|
|||||||||||||
Revenues
|
||||||||||||||||
Non-interest revenues
|
$
|
1,525
|
$
|
1,532
|
$
|
(7
|
)
|
―
|
%
|
|||||||
Interest income
|
9
|
9
|
―
|
―
|
||||||||||||
Interest expense
|
(93
|
)
|
(59
|
)
|
(34
|
)
|
58
|
|||||||||
Net interest income
|
102
|
68
|
34
|
50
|
||||||||||||
Total revenues net of interest expense
|
1,627
|
1,600
|
27
|
2
|
||||||||||||
Provisions for losses
|
4
|
5
|
(1
|
)
|
(20
|
)
|
||||||||||
Total revenues net of interest expense after provisions for losses
|
1,623
|
1,595
|
28
|
2
|
||||||||||||
Expenses
|
||||||||||||||||
Marketing, business development, rewards and Card Member services
|
305
|
267
|
38
|
14
|
||||||||||||
Salaries and employee benefits and other operating expenses
|
482
|
620
|
(138
|
)
|
(22
|
)
|
||||||||||
Total expenses
|
787
|
887
|
(100
|
)
|
(11
|
)
|
||||||||||
Pretax segment income
|
836
|
708
|
128
|
18
|
||||||||||||
Income tax provision
|
205
|
192
|
13
|
7
|
||||||||||||
Segment income
|
$
|
631
|
$
|
516
|
$
|
115
|
22
|
%
|
||||||||
Effective tax rate
|
24.5
|
%
|
27.1
|
%
|
||||||||||||
Total segment assets (billions)
|
22.1
|
19.5
|
• |
A solid and flexible equity capital profile;
|
• |
A broad, deep and diverse set of funding sources to finance our assets and meet operating requirements; and
|
• |
Liquidity programs that enable us to continuously meet expected future financing obligations and business requirements for at least a twelve-month period in the event we are unable to continue to raise new funds under our traditional funding programs during a substantial weakening in economic conditions.
|
Ratios as of
|
||||||||
Basel III
|
March 31,
|
|||||||
Minimum
|
2019
|
|||||||
Risk-Based Capital
|
||||||||
Common Equity Tier 1
|
7.0
|
%
|
||||||
American Express Company
|
10.8
|
%
|
||||||
American Express National Bank
|
12.1
|
|||||||
Tier 1
|
8.5
|
|||||||
American Express Company
|
11.8
|
|||||||
American Express National Bank
|
12.1
|
|||||||
Total
|
10.5
|
|||||||
American Express Company
|
13.4
|
|||||||
American Express National Bank
|
14.2
|
|||||||
Tier 1 Leverage
|
4.0
|
|||||||
American Express Company
|
10.0
|
|||||||
American Express National Bank
|
9.4
|
|||||||
Supplementary Leverage Ratio
|
3.0
|
%
|
||||||
American Express Company
|
8.6
|
|||||||
American Express National Bank
|
7.8
|
%
|
American Express Company
|
March 31,
|
|||
($ in Billions)
|
2019
|
|||
Risk-Based Capital
|
||||
Common Equity Tier 1
|
$
|
17.4
|
||
Tier 1 Capital
|
19.0
|
|||
Tier 2 Capital(a)
|
2.6
|
|||
Total Capital
|
21.6
|
|||
Risk-Weighted Assets
|
161.3
|
|||
Average Total Assets to calculate the Tier 1 Leverage Ratio
|
189.4
|
|||
Total Leverage Exposure to calculate supplementary leverage ratio
|
$
|
221.4
|
(a) |
Tier 2 capital is the sum of the allowance for loan and receivable losses (limited to 1.25 percent of risk-weighted assets), minority interest that is not included in Tier 1 capital and $600 million of subordinated notes adjusted for capital held by insurance subsidiaries.
|
(Billions)
|
March 31, 2019
|
December 31, 2018
|
||||||
Short-term borrowings
|
$
|
2.0
|
$
|
3.1
|
||||
Long-term debt
|
58.4
|
58.4
|
||||||
Total debt
|
60.4
|
61.5
|
||||||
Customer deposits
|
72.9
|
70.0
|
||||||
Total debt and customer deposits
|
$
|
133.3
|
$
|
131.5
|
Credit Agency
|
American Express Entity
|
Short-Term Ratings
|
Long-Term Ratings
|
Outlook
|
||||
Fitch
|
|
All rated entities
|
|
F1
|
A
|
Stable
|
||
Moody’s
|
TRS and rated operating subsidiaries(a)
|
Prime-1
|
A2
|
Stable
|
||||
Moody's
|
|
American Express Company
|
|
Prime-2
|
A3
|
Stable
|
||
S&P
|
TRS(a)
|
N/A
|
A-
|
Stable
|
||||
S&P
|
Other rated operating subsidiaries
|
A-2
|
A-
|
Stable
|
||||
S&P
|
|
American Express Company
|
|
A-2
|
BBB+
|
Stable
|
(a) |
American Express Travel Related Services Company, Inc.
|
• |
Maintaining diversified funding sources (refer to the “Funding Strategy” section for more details);
|
• |
Maintaining unencumbered liquid assets and off-balance sheet liquidity sources;
|
• |
Projecting cash inflows and outflows under a variety of economic and market scenarios;
|
• |
Establishing clear objectives for liquidity risk management, including compliance with regulatory requirements; and
|
• |
Incorporating liquidity risk management as appropriate into our capital adequacy framework.
|
(Billions)
|
2019
|
2018
|
||||||
Total cash provided by (used in):
|
||||||||
Operating activities
|
$
|
8.5
|
$
|
2.0
|
||||
Investing activities
|
(2.7
|
)
|
(0.7
|
)
|
||||
Financing activities
|
―
|
(2.9
|
)
|
|||||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash
|
―
|
(0.2
|
)
|
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
$
|
5.8
|
$
|
(1.8
|
)
|
|
our ability to grow earnings per share in the future, which will depend in part on revenue growth, credit performance and the effective tax rate remaining consistent with current expectations, the company’s ability to control operating expense growth and generate operating leverage, and the company’s ability to continue executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs as well as the following: issues impacting brand perceptions and our reputation; the impact of any future contingencies, including, but not limited to, restructurings, impairments, changes in reserves, legal costs, the imposition of fines or civil money penalties and increases in Card Member reimbursements; the amount and efficacy of investments in customer engagement; changes in interest rates beyond current expectations (including the impact of hedge ineffectiveness and deposit rate increases); a greater impact from new or renegotiated cobrand agreements than expected, which could be affected by spending volumes and customer acquisition; and the impact of regulation and litigation, which could affect the profitability of our business activities, limit our ability to pursue business opportunities, require changes to business practices or alter our relationships with partners, merchants and Card Members;
|
|
our ability to grow revenues net of interest expense, which could be impacted by, among other things, weakening economic conditions in the United States or internationally, a decline in consumer confidence impacting the willingness and ability of Card Members to sustain and grow spending and revolve balances, growth in Card Member loans and the yield on Card Member loans not remaining consistent with current expectations, the average discount rate changing by a greater amount than expected, the strengthening of the U.S. dollar beyond expectations, the willingness of Card Members to pay higher card fees, lower spending on new cards acquired than estimated, and our inability to address competitive pressures and implement our strategies and business initiatives, including within the premium consumer segment, commercial payments, the global network and digital environment;
|
|
changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure that may impact the prices we charge merchants that accept American Express cards, competition for new and existing cobrand relationships, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;
|
|
the average discount rate changing by a greater amount than anticipated, including as a result of changes in the mix of spending by location and industry, merchant negotiations (including merchant incentives, concessions and volume-related pricing discounts), pricing initiatives, competition, pricing regulation (including regulation of competitors’ interchange rates in the European Union and elsewhere) and other factors;
|
|
our delinquency and write-off rates and growth of provisions for losses being higher or lower than current expectations, which will depend in part on changes in the level of loan and receivable balances and delinquencies generally, as well as macroeconomic factors, the mix of balances, newer vintages and balance transfers, loans and receivables related to new Card Members and other borrowers performing as expected, credit performance of new and enhanced lending products, unemployment rates, the volume of bankruptcies, collections capabilities and recoveries of previously written-off loans and receivables;
|
|
our ability to continue to grow loans, which may be affected by increasing competition, brand perceptions and reputation, our ability to manage risk, the behavior of Card Members and their actual spending and borrowing patterns, and our ability to issue new and enhanced card products, offer attractive non-card lending products, capture a greater share of existing Card Members’ spending and borrowings, reduce Card Member attrition and attract new customers;
|
|
our net interest yield on average Card Member loans not remaining consistent with current expectations, which will be influenced by, among other things, the difference between the prime rate and our cost of funds, changes in consumer behavior that affect loan balances (such as paydown rates), our Card Member acquisition strategy, product mix, credit actions, including line size and other adjustments to credit availability, changes in the level of loans at promotional rates and other pricing changes, which could be impacted by, among other things, changes in benchmark interest rates, competitive pressure and regulatory constraints;
|
|
the actual amount to be spent on customer engagement, which will be based in part on management’s assessment of competitive opportunities; overall business performance and changes in macroeconomic conditions; our ability to cost effectively enhance card products and services to make them attractive to Card Members; Card Member behavior as it relates to their spending patterns (including the level of spend in bonus categories) and the redemption of rewards and offers, as well as the degree of interest of Card Members in the value propositions we offer; the costs related to reward point redemptions, advertising and Card Member acquisition; our ability to continue to shift Card Member acquisition to digital channels; new and renegotiated contractual obligations with business partners; and the pace and cost of the expansion of our global lounge collection;
|
|
our ability to control operating expense growth, which could be impacted by increases in costs, such as cyber, fraud or compliance expenses or consulting, legal and other professional fees, including as a result of increased litigation or internal and regulatory reviews; higher than expected employee levels; an inability to innovate efficient channels of customer interactions, such as chat supported by artificial intelligence, or customer acquisition; the impact of changes in foreign currency exchange rates on costs; the payment of civil money penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; impairments of goodwill or other assets; management’s decision to increase or decrease spending in such areas as technology, business and product development and sales forces; greater -than -expected inflation; and the level of M&A activity and related expenses;
|
|
our ability to satisfy our commitments to certain of our cobrand partners as part of the ongoing operations of the business, which will be impacted in part by competition, brand perceptions and reputation, and our ability to develop and market value propositions that appeal to current cobrand Card Members and new customers and offer attractive services and rewards programs, which will depend in part on ongoing investments, new product innovation and development, Card Member acquisition efforts and enrollment processes, including through digital channels, and infrastructure to support new products, services and benefits;
|
|
changes affecting our plans regarding the return of capital to shareholders through dividends and share repurchases, which will depend on factors such as our capital levels and regulatory capital ratios; changes in the stress testing and capital planning process and the continued non-objection by our primary regulators to our capital plans; the amount of capital required to support asset growth; the amount we spend on acquisitions of companies; and our results of operations and financial condition; and the economic environment and market conditions in any given period;
|
|
our tax rate not remaining consistent with current expectations, which could be impacted by, among other things, the company’s geographic mix of income, further changes in tax laws and regulation, unfavorable tax audits and other unanticipated tax items;
|
|
a failure in or breach of our operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt our operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;
|
|
our deposit rates increasing faster or slower than current expectations and changes affecting our ability to grow Personal Savings deposits due to market demand, changes in benchmark interest rates, competition or regulatory restrictions on our ability to obtain deposit funding or offer competitive interest rates, which could affect our net interest yield and ability to fund our businesses;
|
|
our funding plan being implemented in a manner inconsistent with current expectations, which will depend on various factors such as future business growth, the impact of global economic, political and other events on market capacity, demand for securities we offer, regulatory changes, ability to securitize and sell receivables and the performance of receivables previously sold in securitization transactions;
|
|
changes in global economic and business conditions, consumer and business spending generally, the availability and cost of capital, unemployment rates, geopolitical conditions, Brexit, prolonged or recurring government shutdowns, trade policies, foreign currency rates and interest rates, all of which may significantly affect demand for and spending on American Express cards, delinquency rates, loan and receivable balances and other aspects of our business and results of operations;
|
|
changes in capital and credit market conditions, which may significantly affect our ability to meet our liquidity needs, expectations regarding capital and liquidity ratios, access to capital and cost of capital, including changes in interest rates; changes in market conditions affecting the valuation of our assets; or any reduction in our credit ratings or those of our subsidiaries, which could materially increase the cost and other terms of our funding or restrict our access to the capital markets;
|
|
legal and regulatory developments, which could require us to make fundamental changes to many of our business practices, including our ability to continue certain cobrand and agent relationships in their current form in the EU; exert further pressure on the average discount rate and GNS volumes; result in increased costs related to regulatory oversight, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or civil money penalties; materially affect our capital or liquidity requirements, results of operations or ability to pay dividends or repurchase stock; or result in harm to the American Express brand;
|
|
changes in the financial condition and creditworthiness of our business partners, such as bankruptcies, restructurings or consolidations, including merchants that represent a significant portion of our business, such as the airline industry, or our partners in GNS or financial institutions that we rely on for routine funding and liquidity, which could materially affect our financial condition or results of operations; and
|
|
factors beyond our control such as fire, power loss, disruptions in telecommunications, severe weather conditions, natural disasters, health pandemics or terrorism, any of which could significantly affect demand for and spending on American Express cards, delinquency rates, loan and receivable balances and other aspects of our business and results of operations or disrupt our global network systems and ability to process transactions.
|
Total Number of Shares Purchased
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(c)
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
|||||||||||||
January 1-31,2019
|
||||||||||||||||
Repurchase program(a)
|
5,026,421
|
$
|
97.86
|
5,026,421
|
64,913,213
|
|||||||||||
Employee transactions(b)
|
―
|
―
|
―
|
N/A
|
||||||||||||
February 1-28, 2019
|
||||||||||||||||
Repurchase program(a)
|
3,374,325
|
$
|
106.89
|
3,374,325
|
61,538,888
|
|||||||||||
Employee transactions(b)
|
1,070,070
|
$
|
100.55
|
―
|
N/A
|
|||||||||||
March 1-31, 2019
|
||||||||||||||||
Repurchase program(a)
|
3,566,485
|
$
|
110.03
|
3,566,485
|
57,972,403
|
|||||||||||
Employee transactions(b)
|
18
|
$
|
99.83
|
―
|
N/A
|
|||||||||||
Total
|
||||||||||||||||
Repurchase program(a)
|
11,967,231
|
$
|
104.03
|
11,967,231
|
57,972,403
|
|||||||||||
Employee transactions(b)
|
1,070,088
|
$
|
100.55
|
―
|
N/A
|
(a) |
On September 26, 2016, the Board of Directors authorized the repurchase of up to 150 million shares of common stock from time to time, subject to market conditions and the Federal Reserve’s non-objection to our capital plans. This authorization replaced the prior repurchase authorization and does not have an expiration date. See “MD&A – Consolidated Capital Resources and Liquidity” for additional information regarding share repurchases.
|
(b) |
Includes: (i) shares surrendered by holders of employee stock options who exercised options (granted under our incentive compensation plans) in satisfaction of the exercise price and/or tax withholding obligation of such holders and (ii) restricted shares withheld (under the terms of grants under our incentive compensation plans) to offset tax withholding obligations that occur upon vesting and release of restricted shares. Our incentive compensation plans provide that the value of the shares delivered or attested to, or withheld, be based on the price of our common stock on the date the relevant transaction occurs.
|
(c) |
Share purchases under publicly announced programs are made pursuant to open market purchases or privately negotiated transactions (including employee benefit plans) as market conditions warrant and at prices we deem appropriate.
|
|
|
AMERICAN EXPRESS COMPANY
|
||||
|
|
|
(Registrant)
|
|||
Date: April 23, 2019
|
|
|
By
|
|
/s/ Jeffrey C. Campbell
|
|
|
|
|
Jeffrey C. Campbell
|
|||
|
|
|
Executive Vice President and
|
|||
|
|
|
Chief Financial Officer
|
|||
Date: April 23, 2019
|
|
|
By
|
|
/s/ Richard Petrino
|
|
|
|
|
Richard Petrino
|
|||
|
|
|
Executive Vice President and
Corporate Controller
|
|||
|
|
|
(Principal Accounting Officer)
|
|||
|
|
|
Exhibit
|
Description
|
10.1
|
|
10.2
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
1.
|
AETRSC and User hereby expressly agree that the Schedule A attached hereto amends and replaces the Schedule A attached to the Time Sharing Agreement.
|
2.
|
All notices and other communications given pursuant to Section 12 of the Time Sharing Agreement under this Amendment No. 1 and/or the Time Sharing Agreement shall be addressed to the parties as provided on the signature page of this Amendment No. 1.
|
3.
|
All capitalized terms not defined herein shall have the meanings ascribed to them in the Time Sharing Agreement.
|
4.
|
Except as expressly amended by this Amendment No. 1, the Time Sharing Agreement remains in full force and effect, and this Amendment No. 1 shall not be construed to alter or amend any of the other terms or conditions set forth in the Time Sharing Agreement. In the event of a conflict between the terms of the Time Sharing Agreement and this Amendment No. 1, the provisions of this Amendment No. 1 shall prevail.
|
5.
|
This Amendment No. 1 may be executed in counterparts, each of which will be deemed to be an original, but both of which together shall constitute one and the same instrument.
|
6.
|
TRUTH-IN-LEASING STATEMENT PURSUANT TO SECTION 91.23 OF THE FEDERAL AVIATION REGULATIONS.
|
AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.
By: /s/ Richard J. Walsh
Name: Richard J. Walsh
Title: Vice President
|
|
STEPHEN J. SQUERI
/s/ Stephen J. Squeri
|
Address:
|
|
American Express Travel Related Services Company, Inc.
Attn: VP of Flight Operations
1 Express Dr.
Newburgh, NY 12550
Phone: [redacted]
Facsimile: [redacted]
Email: [redacted]@aexp.com
|
Address:
|
|
Stephen J. Squeri
c/o American Express Company
200 Vesey St., [redacted]
New York, NY 10285
Phone: 212-640-2000
Facsimile: [redacted]
Email: [redacted]@aexp.com
|
1. |
Mail a copy of the lease to the following address via certified mail, return receipt requested, immediately upon execution of the lease (14 C.F.R. 91.23 requires that the copy be sent within twenty-four hours after it is signed):
|
2. |
Telephone or fax the nearest Flight Standards District Office at least forty-eight hours prior to the first flight under this lease.
|
3. |
Carry a copy of the lease in the aircraft at all times.
|
a)
|
American Express Services Europe Limited 'the Employer'
|
·
|
Withdraw or change any powers or duties assigned to, or otherwise vested in, you.
|
·
|
Request the return of Company property and/or remove your access to Company information.
|
·
|
Instruct that you remain away from the workplace.
|
·
|
You are planning to take maternity, paternity or parental leave.
|
·
|
You receive a pay increase outside of the annual salary review
|
·
|
If you resign from American Express or if the Company ceases to sponsor you.
|
-
|
the American Express group of companies worldwide;
|
-
|
those who provide products or services to the Company (such as advisers, payroll administrators or lawyers and consulting firms);
|
-
|
regulatory authorities;
|
-
|
potential or future employers, in case you request a referral for a new job outside our Company; and
|
-
|
governmental or quasi-governmental organisations.
|
a)
|
Undertake other employment, whether paid or unpaid, or have any outside business interest.
|
b)
|
Serve as a Director or Officer (paid or otherwise) of any business other than American Express.
|
a) |
You have been an employee, partner, principal or shareholder of PriceWaterhouseCoopers or any of its affiliates or legacy firms within the past three years; or
|
b) |
You have a close family member (e.g., spouse, parent, child or sibling) employed by PriceWaterhouseCoopers or any of its affiliates or legacy firms.
|
28.
|
Right to amend
|
|
Start date:
|
10 September 2018
|
|
|
|
|
Signed
|
/s/ Anna Marrs
|
Dated | 11 March 2018 |
1.
|
Information We Collect
|
(a)
|
through credit checks with credit reference agencies;
|
(b)
|
through additional checks with external agencies, such as background verification agencies, sanctions screening agencies, and in rare cases, medical examiners;
|
2.
|
Information We Share
|
·
|
with credit reference agencies and similar institutions to report or ask about your financial circumstances;
|
·
|
with worker representatives, regulatory authorities, courts, law enforcement and governmental agencies to comply with legal orders, legal or regulatory requirements, and law enforcement requests;
|
·
|
within the American Express Family of Companies to provides services or as noted below;
|
·
|
with our service providers who help manage our employment relationships (such as human resource consultants, payroll companies, lawyers, consulting firms, employee benefits companies, printing, mailing and other communications services or data processing and outsourced technology services); and
|
·
|
any party approved by you (such as your bank or your beneficiaries).
|
3.
|
How We Use Your Information
|
·
|
to verify your credentials, prior employment and personal history;
|
·
|
to provide payroll and employee benefits, including insurance and pensions;
|
·
|
for training and development, planning and organisation (including the creation of employee profiles to facilitate this);
|
·
|
for communications related to your employment, such as performance ratings, service anniversaries, goal setting and rewards;
|
·
|
for compliance with internal policies and statutory requirements, such as record keeping and reporting for public health care, pension programs and tax purposes;
|
·
|
for management and analysis of employee expenses;
|
·
|
for the creation of aggregated reports for human resources' analytics;
|
·
|
for the monitoring of employee activity and electronic communications in the workplace (including records of incoming/outgoing telephone calls, images, electronic communication systems and internet use) in accordance with our internal policies and applicable law, for security, prevention of misconduct or crime, staff training and quality assurance. You will be advised if you work in an area where video/images are monitored and/or recorded in accordance with applicable law; and
|
·
|
for security purposes, such as crisis preparedness and emergency notifications, or for the protection of your health or the safety of others.
|
4.
|
International Transfers
|
5.
|
Safeguarding and Retention
|
6.
|
Your Rights
|
·
|
access the personal information we keep about you;
|
·
|
correct inaccurate personal information we have about you;
|
·
|
restrict and/or object to the use of your personal information;
|
·
|
request a copy of your personal information, in a structured, commonly used and machine-readable format; and
|
·
|
withdraw your consent for those activities where we obtained your consent to process your personal information.
|
7.
|
Questions
|
1. |
I have reviewed this quarterly report on Form 10-Q of American Express Company;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1. |
I have reviewed this quarterly report on Form 10-Q of American Express Company;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Represents net income less (i) earnings allocated to participating share awards of $ 11 million and $ 13 million for the three months ended March 31 , 2019 and 2018 , respectively, and (ii) dividends on preferred shares of $ 21 million for both the three months ended March 31 , 2019 and 2018 .
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 15, 2019 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN EXPRESS COMPANY | |
Trading Symbol | AXP | |
Entity Central Index Key | 0000004962 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 835,080,540 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Consolidated Statements of Income [Abstract] | ||
Earnings allocated to participating share awards | $ 11 | $ 13 |
Dividends Preferred Stock | $ 21 | $ 21 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 1,550 | $ 1,634 |
Other comprehensive income (loss): | ||
Net unrealized securities (losses) gains, net of tax | 17 | (11) |
Foreign currency translation adjustments, net of tax | 8 | 30 |
Net unrealized Pension and other postretirement benefits, net of tax | (27) | 28 |
Other comprehensive income (loss) | (2) | 47 |
Comprehensive income | $ 1,548 | $ 1,681 |
Consolidated Balance Sheets - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Cash and cash equivalents | ||
Cash and due from banks | $ 4,026 | $ 3,253 |
Interest-bearing deposits in other banks (includes securities purchased under resale agreements) | 29,110 | 24,026 |
Short-term investment securities | 41 | 166 |
Total cash and cash equivalents | 33,177 | 27,445 |
Accounts receivable | ||
Card Member receivables (includes gross receivables available to settle obligations of consolidated variable interest entity), less reserves | 56,227 | 55,320 |
Other receivables, less reserves | 3,128 | 2,907 |
Loans | ||
Card Member loans (includes gross loans available to settle obligations of consolidated variable interest entity), less reserves | 78,874 | 79,720 |
Other loans, less reserves | 3,965 | 3,676 |
Investment securities | 6,457 | 4,647 |
Premises and equipment, less accumulated depreciation and amortization | 4,479 | 4,416 |
Other assets (includes restricted cash of consolidated variable interest entities) | 10,886 | 10,471 |
Total assets | 197,193 | 188,602 |
Liabilities | ||
Customer deposits | 72,857 | 69,960 |
Travelers Cheques and other prepaid products | 2,223 | 2,295 |
Accounts payable | 16,162 | 12,255 |
Short-term borrowings (includes debt issued by consolidated variable interest entity) | 2,028 | 3,100 |
Long-term debt (includes debt issued by consolidated variable interest entities) | 58,418 | 58,423 |
Other liabilities | 23,287 | 20,279 |
Total liabilities | 174,975 | 166,312 |
Shareholders' Equity | ||
Preferred shares | 0 | 0 |
Common shares | 168 | 170 |
Additional paid-in capital | 11,963 | 12,218 |
Retained earnings | 12,686 | 12,499 |
Accumulated other comprehensive (loss) income | ||
Net unrealized debt securities gains (losses), net of tax | 9 | (8) |
Foreign currency translation adjustments, net of tax | (2,125) | (2,133) |
Net unrealized pension and other postretirement benefits, net of tax | (483) | (456) |
Total accumulated other comprehensive loss | (2,599) | (2,597) |
Total shareholders' equity | 22,218 | 22,290 |
Total liabilities and shareholders' equity | $ 197,193 | $ 188,602 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Card Member receivables, gross | $ 56,835 | $ 55,893 |
Card Member loans | 80,995 | 81,854 |
Other assets | 10,886 | 10,471 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 308 | 64 |
Accounts receivable | ||
Card Member receivables, reserves | 608 | 573 |
Other receivables, reserves | 25 | 25 |
Loans | ||
Card Member loans, reserves | 2,121 | 2,134 |
Other loans, reserves | 129 | 124 |
Accumulated depreciation and amortization | 6,315 | 6,015 |
Restricted cash included in Other assets per Consolidated Balance Sheets | 454 | 363 |
Short Term Borrowings | 2,028 | 3,100 |
Long-term Debt | $ 58,418 | $ 58,423 |
Common shares, par value | $ 0.2 | $ 0.2 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 837,000,000 | 847,000,000 |
Common shares, outstanding | 837,000,000 | 847,000,000 |
Preferred shares, authorized | 20,000,000 | 20,000,000 |
Preferred shares, issued | 1,600 | 1,600 |
Preferred shares, outstanding | 1,600 | 1,600 |
Preferred shares, par value | $ 1.667 | $ 1.667 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, tax | $ 3 | $ (1) |
Foreign currency translation adjustments, tax | (336) | (300) |
Net unrealized pension and other postretirement benefits, tax | (181) | (170) |
Variable Interest Entity | ||
Card Member receivables, gross | 7,758 | 8,539 |
Card Member loans | 31,495 | 33,194 |
Loans | ||
Restricted cash included in Other assets per Consolidated Balance Sheets | 84 | 70 |
Long-term Debt | $ 19,538 | $ 19,509 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
Cash Flows from Operating Activities | ||||
Net income | $ 1,550 | $ 1,634 | ||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||||
Provisions for losses | 809 | 775 | ||
Depreciation and amortization | 297 | 348 | ||
Deferred taxes and other | 137 | (254) | ||
Stock-based compensation | 85 | 84 | ||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||||
Other receivables | (196) | 122 | ||
Other assets | (161) | (85) | ||
Accounts payable and other liabilities | 6,100 | (431) | ||
Travelers Cheques and other prepaid products | (74) | (130) | ||
Net cash provided by operating activities | 8,547 | 2,063 | ||
Cash Flows from Investing Activities | ||||
Maturities and redemptions of investment securities | 2,227 | 886 | ||
Purchase of investments | (4,060) | (1,215) | ||
Net (increase) decrease in Card Member receivables and loans | [1] | (656) | 348 | |
Purchase of premises and equipment, net of sales | (348) | (237) | ||
Acquisitions/Dispositions, net of cash acquired | (20) | (475) | ||
Other investing activities, net | 148 | 0 | ||
Net cash (used in) provided by investing activities | (2,709) | (693) | ||
Cash Flows from Financing Activities | ||||
Net increase (decrease) in customer deposits | 2,892 | 2,206 | ||
Net decrease in short-term borrowings | (1,099) | (1,489) | ||
Proceeds from long-term borrowings | 3,633 | 3,984 | ||
Payments of long-term borrowings | (3,821) | (7,203) | ||
Issuance of American Express common shares | 19 | 11 | ||
Repurchase of American Express common shares and other | (1,352) | (134) | ||
Dividends paid | (355) | (324) | ||
Net cash provided by (used in) financing activities | (83) | (2,949) | ||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash | 68 | (178) | ||
Net (decrease) increase in cash, cash equivalents and restricted cash | 5,823 | (1,757) | ||
Cash, cash equivalents and restricted cash at beginning of period | 27,808 | 33,263 | ||
Cash, cash equivalents and restricted cash at end of period | $ 33,631 | $ 31,506 | ||
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Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Consolidated Statements of Cash Flows [Abstract] | ||||
Cash and cash equivalents per Consolidated Balance Sheets | $ 33,177 | $ 27,445 | $ 31,092 | $ 32,927 |
Restricted cash included in Other assets per Consolidated Balance Sheets | 454 | 363 | 414 | 336 |
Total Cash, cash equivalents and restricted cash | $ 33,631 | $ 27,808 | $ 31,506 | $ 33,263 |
Consolidated Statements of Cash Flows (Parenthetical 1) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
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Consolidated Statements of Cash Flows [Abstract] | ||
Sale of premises and equipment | $ 33 | $ 0 |
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions |
Total |
Series C Preferred Stock [Member] |
Preferred shares |
Common shares |
Additional Paid In Capital [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Retained Earnings [Member] |
Retained Earnings [Member]
Series C Preferred Stock [Member]
|
---|---|---|---|---|---|---|---|---|
Beginning Balance at Dec. 31, 2017 | $ 18,261 | $ 0 | $ 172 | $ 12,210 | $ (2,428) | $ 8,307 | ||
Net income | 1,634 | 0 | 0 | 0 | 0 | 1,634 | ||
Other comprehensive income (loss) | 47 | 0 | 0 | 0 | 47 | 0 | ||
Repurchase of common shares | 0 | 0 | 0 | 0 | 0 | 0 | ||
Other changes, primarily employee plans | (7) | 0 | 0 | 15 | 0 | (22) | ||
Cash dividends declared preferred | $ (21) | 0 | 0 | 0 | 0 | $ (21) | ||
Cash dividends declared common | (301) | 0 | 0 | 0 | 0 | (301) | ||
Ending Balance at Mar. 31, 2018 | 19,613 | 0 | 172 | 12,225 | (2,381) | 9,597 | ||
Beginning Balance at Dec. 31, 2018 | 22,290 | 0 | 170 | 12,218 | (2,597) | 12,499 | ||
Net income | 1,550 | 0 | 0 | 0 | 0 | 1,550 | ||
Other comprehensive income (loss) | (2) | 0 | 0 | 0 | (2) | 0 | ||
Repurchase of common shares | (1,245) | 0 | (3) | (267) | 0 | (975) | ||
Other changes, primarily employee plans | (27) | 0 | 1 | 12 | 0 | (40) | ||
Cash dividends declared preferred | $ (21) | 0 | 0 | 0 | 0 | $ (21) | ||
Cash dividends declared common | (327) | 0 | 0 | 0 | 0 | (327) | ||
Ending Balance at Mar. 31, 2019 | $ 22,218 | $ 0 | $ 168 | $ 11,963 | $ (2,599) | $ 12,686 |
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
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Cash dividends declared | ||
Common stock, dividend per share | $ 0.39 | $ 0.35 |
Series C Preferred Stock [Member] | ||
Cash dividends declared | ||
Preferred stock, dividend per share | $ 24.5 | $ 24.5 |
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The Company We are a globally integrated payments company that provides customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are charge and credit 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 (the GBT JV). Our 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 through various channels, including mobile and online applications, direct mail, in-house sales teams, third-party vendors and direct response advertising. The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Form 10-K). If not materially different, certain note disclosures included therein have been omitted from these Consolidated Financial Statements. The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, 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 been made to conform to the current period presentation. Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance for the recognition of credit losses on financial instruments, effective January 1, 2020. 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 CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. In addition, for available-for-sale debt securities, the new guidance replaces the other-than-temporary impairment model, and requires the recognition of an allowance for reductions in a security’s fair value attributable to declines in credit quality, instead of a direct write-down of the security, when a valuation decline is determined to be other-than-temporary. The guidance also requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. We continue to evaluate the impact the new guidance will have on our financial position, results of operations and regulatory risk-based capital. The CECL model will alter the assumptions used in estimating credit losses on Card Member loans and receivables, and we may have material changes to our credit reserves as the new guidance involves earlier recognition of expected losses for the life of the assets. However, the extent of the impact will depend on the characteristics of our loan portfolio, macroeconomic conditions and forecasted information at the date of adoption. We continue to drive our cross-functional implementation efforts and have substantially completed development of CECL models. Continuing through 2019, we are validating and analyzing model output during CECL parallel runs, and developing the business processes, policies and controls that satisfy the requirements of the new standard. Recently Adopted Accounting Standards In February 2016, the FASB issued new accounting guidance on leases. The accounting standard, effective January 1, 2019, requires virtually all leases to be recognized on the Consolidated Balance Sheets. Effective January 1, 2019, we adopted the standard using the modified retrospective method, under which we elected the package of practical expedients and transition provisions allowing us to bring our existing operating leases onto the Consolidated Balance Sheet without adjusting comparative periods. Under the guidance we have also elected not to separate lease and non-lease components in recognition of the lease-related assets and liabilities, as well as the related lease expense. We have operating leases for facilities and equipment, which are recorded as assets and liabilities for those leases with terms greater than 12 months. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Upon adoption of the standard, we recorded approximately $700 million of right of use assets and lease-related liabilities, included in Other assets and Other liabilities, respectively. In conjunction with the adoption, we upgraded our lease administration software and updated our business processes and internal controls in support of the new guidance. In February 2018, as a result of the enactment of the Tax Cuts and Jobs Act (the Tax Act), the FASB issued new accounting guidance on the reclassification of certain tax effects from accumulated other comprehensive income (AOCI) to retained earnings. We adopted the new guidance effective January 1, 2019 and did not elect the optional reclassification. |
Business Events |
3 Months Ended |
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Mar. 31, 2019 | |
Business Combination Disclosure [Abstract] | |
Divestitures | 2. Business Events During the first quarter of 2018, we acquired the portion of the Hilton Worldwide Holdings Inc. cobrand credit card loan portfolio that we did not previously own (the acquired Hilton portfolio). The acquired Hilton portfolio had an outstanding principal and interest balance of approximately $1 billion at acquisition. None of the credit card loans acquired were considered purchased credit impaired at acquisition date. The cash outflows related to this acquisition are reported within the investing section of the Consolidated Statements of Cash Flows primarily as an increase in Card Member receivables and loans. |
Loans and Accounts Receivable |
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Loans Notes Trade And Other Receivables Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Accounts Receivable | 3. Loans and Accounts Receivable Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables, respectively. Card Member loans by segment and Other loans as of March 31, 2019 and December 31, 2018 consisted of:
Card Member accounts receivable by segment and Other receivables as of March 31, 2019 and December 31, 2018 consisted of:
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 March 31, 2019 and December 31, 2018:
Credit Quality Indicators for Card Member Loans and Receivables The following tables present the key credit quality indicators as of or for the three months ended March 31:
We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. Impaired Card Member Loans and Receivables Impaired Card Member loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the Card Member agreement. In certain cases, these Card Member loans and receivables are included in one of our various Troubled Debt Restructuring (TDR) modification programs. Impaired Card Member loans and receivables outside the U.S. are not significant as of March 31, 2019 and December 31, 2018; therefore, such loans and receivables are not included in the following tables unless otherwise noted. The following tables provide additional information with respect to our impaired Card Member loans and receivables as of March 31, 2019 and December 31, 2018:
The following table provides information with respect to our average balances and interest income recognized from impaired Card Member loans and the average balances of impaired Card Member receivables for the three months ended March 31:
Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to Card Member loans and receivables modified as TDRs for the three months ended March 31, 2019 and 2018.
The following table provides information with respect to Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A Card Member is considered in default of a modification program after one and up to two missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables.
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 |
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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 our outstanding portfolio of loans and receivables as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31:
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 March 31, 2019 and December 31, 2018:
Changes in Card Member Receivables Reserve for Losses The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31:
Card Member Receivables Evaluated Individually and Collectively for Impairment The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of March 31, 2019 and December 31, 2018:
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | 5. Investment Securities Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets, with unrealized gains and losses recorded in AOCI, net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets. The unrealized gains and losses on equity securities are recorded in the Consolidated Statements of Income. The following is a summary of investment securities as of March 31, 2019 and December 31, 2018:
The following table provides information about our investment securities with gross unrealized losses and the length of time that individual securities have been in an unrealized loss position as of March 31, 2019 and December 31, 2018:
The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31, 2019 and December 31, 2018:
The gross unrealized losses for available-for-sale debt securities are attributed to wider credit spreads for specific issuers, adverse changes in benchmark interest rates, or a combination thereof, all compared to those prevailing when the investment securities were purchased. Overall, for the available-for-sale debt securities in gross unrealized loss positions, (i) we do not intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losses, and (iii) we expect that the contractual principal and interest will be received on the securities. As a result, we recognized no other-than-temporary impairment during the periods presented. Contractual maturities for investment securities with stated maturities as of March 31, 2019 were as follows:
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 |
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Asset Securitizations [Abstract] | |||||||||||||||||||||||||||||
Asset Securitizations | 6. Asset Securitizations We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors. The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. As of March 31, 2019, our ownership of variable interests was $12.3 billion and $7.8 billion for the Lending Trust and the Charge Trust, respectively. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts and therefore consolidate the Trusts. The following table provides information on the restricted cash held by the Trusts as of March 31, 2019 and December 31, 2018, included in Other assets on the Consolidated Balance Sheets:
These amounts relate to collections of Card Member loans and receivables to be used by the Trusts to fund future expenses and obligations, including interest on debt securities, credit losses and upcoming debt maturities. Under the respective terms of the Lending Trust and the Charge Trust agreements, the occurrence of certain triggering events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve funds, or, in a worst-case scenario, early amortization of debt securities. During the three months ended March 31, 2019 and the year ended December 31, 2018, no such triggering events occurred. |
Customer Deposits |
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Deposit Liabilities Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Deposits | 7. Customer Deposits As of March 31, 2019 and December 31, 2018, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:
Customer deposits by deposit type as of March 31, 2019 and December 31, 2018 were as follows:
The weighted average remaining maturity and weighted average interest rate at issuance on the total portfolio of U.S. retail certificates of deposit issued through direct and third-party programs were 47 months and 2.40 percent, respectively, as of March 31, 2019. The scheduled maturities of certificates of deposit as of March 31, 2019 were as follows:
As of March 31, 2019 and December 31, 2018, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows:
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Contingencies |
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Contingencies Disclosure [Abstract] | |
Contingencies | 8. Contingencies In the ordinary course of business, we and our subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, information gathering requests, subpoenas, inquiries and matters relating to compliance with laws and regulations (collectively, legal proceedings). Based on our current knowledge, and taking into consideration our litigation-related liabilities, we do not believe we are a party to, nor are any of our properties the subject of, any legal proceeding that would have a material adverse effect on our consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described below. Individual merchant cases and a putative merchant class action, which were consolidated in 2011 and collectively captioned In re: American Express Anti-Steering Rules Antitrust Litigation (II) in the Eastern District of New York, alleged that provisions in our merchant agreements prohibiting merchants from differentially surcharging our cards or steering a customer to use another network’s card or another type of general-purpose card (“anti-steering” and “non-discrimination” contractual provisions) violate U.S. antitrust laws. Following the Supreme Court decision in Ohio v. American Express Co. in favor of American Express, plaintiffs in both the individual merchant cases and the putative merchant class action filed amended complaints. On April 12, 2019, the individual merchant cases were dismissed with prejudice pursuant to a joint stipulation between the parties. Our motion to dismiss and compel arbitration of the class action is pending. In July 2004, we were named as a defendant in another putative class action filed in the Southern District of New York and subsequently transferred to the Eastern District of New York, captioned The Marcus Corporation v. American Express Co., et al., in which the plaintiffs allege an unlawful antitrust tying arrangement between certain of our charge cards and credit cards in violation of various state and federal laws. The plaintiffs in this action seek injunctive relief and an unspecified amount of damages. On March 8, 2016, plaintiffs B&R Supermarket, Inc. d/b/a Milam’s Market and Grove Liquors LLC, on behalf of themselves and others, filed a suit, captioned B&R Supermarket, Inc. d/b/a Milam’s Market, et al. v. Visa Inc., et al., for violations of the Sherman Antitrust Act, the Clayton Antitrust Act, California’s Cartwright Act and unjust enrichment in the United States District Court for the Northern District of California, against American Express Company, other credit and charge card networks, other issuing banks and EMVCo, LLC. Plaintiffs allege that the defendants, through EMVCo, conspired to shift liability for fraudulent, faulty and otherwise rejected consumer credit card transactions from themselves to merchants after the implementation of EMV chip payment terminals. Plaintiffs seek damages and injunctive relief. An amended complaint was filed on July 15, 2016. On September 30, 2016, the court denied our motion to dismiss as to claims brought by merchants who do not accept American Express cards, and on May 4, 2017, the California court transferred the case to the United States District Court for the Eastern District of New York. On July 30, 2015, plaintiff Plumbers and Steamfitters Local 137 Pension Fund, on behalf of themselves and other purchasers of American Express stock, filed a suit, captioned Plumbers and Steamfitters Local 137 Pension Fund v. American Express Co., Kenneth I. Chenault and Jeffrey C. Campbell, in the United States District Court for the Southern District of New York for violation of federal securities law, alleging that the Company deliberately issued false and misleading statements to, and omitted important information from, the public relating to the financial importance of the Costco cobrand relationship to the Company, including, but not limited to, the decision to accelerate negotiations to renew the cobrand agreement. The plaintiff sought damages and injunctive relief. On October 2, 2017, the Court granted defendants’ motion to dismiss the plaintiff’s amended complaint. The plaintiff has appealed the court’s decision. We are being challenged in a number of countries regarding our application of value-added taxes (VAT) to certain of our international transactions, which are in various stages of audit, or are being contested in legal actions. While we believe we have complied with all applicable tax laws, rules and regulations in the relevant jurisdictions, the tax authorities may determine that we owe additional VAT. In certain jurisdictions where we are contesting the assessments, we were required to pay the VAT assessments prior to contesting. Our legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members. These legal proceedings involve various lines of business and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against us specify the damages claimed by the plaintiff or class, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficiently such that we are able to estimate an amount of loss or a range of possible loss. We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. For those disclosed material legal proceedings where a loss is reasonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies, or where there is no such accrual, and for which we are able to estimate a range of possible loss, the current estimated range is zero to $240 million in excess of any accruals related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or recorded accruals. In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the disclosed merchant cases could have a material adverse effect on our business. |
Derivatives and Hedging Activities |
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Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | 9. Derivatives and Hedging Activities We use derivative financial instruments to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates, foreign exchange rates, and an 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 our market risk management. We do not transact in derivatives for trading purposes. In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate the agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of March 31, 2019, these derivatives were not in a material net liability position. Based on our assessment of the credit risk of our derivative counterparties as of March 31, 2019 and December 31, 2018, no credit risk adjustment to the derivative portfolio was required. A majority of our derivative assets and liabilities as of March 31, 2019 and December 31, 2018 are subject to master netting agreements with our derivative counterparties. We have no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31, 2019 and December 31, 2018:
Fair Value Hedges We are exposed to interest rate risk associated with our fixed-rate long-term debt obligations. At the time of issuance, certain fixed-rate debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rate. We have $22.8 billion and $24.0 billion of fixed-rate debt obligations designated in fair value hedging relationships as of March 31, 2019 and December 31, 2018, respectively. The following table presents the gains and losses recognized in Interest expense associated with the fair value hedges of our fixed-rate long-term debt for the three months ended March 31:
The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $22.6 billion and $23.7 billion as of March 31, 2019 and December 31, 2018, respectively, including offsetting amounts of $81 million and $241 million for the respective periods, related to the cumulative amount of fair value hedging adjustments. We recognized a net increase of $38 million and a net reduction of $14 million in Interest expense on Long-term debt for the three months ended March 31, 2019 and 2018, respectively, primarily related to the net settlements (interest accruals) on our interest rate derivatives designated as fair value hedges. Net Investment Hedges We had notional amounts of approximately $9.5 billion and $9.6 billion of foreign currency derivatives designated as net investment hedges as of March 31, 2019 and December 31, 2018, respectively. The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, were losses of $162 million for both the three months ended March 31, 2019 and 2018. Accumulated gains within AOCI of nil and $1 million for the three months ended March 31, 2019 and 2018, respectively, were reclassified into Other expenses upon investment sales or liquidations. 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 resulted in a net gain of $4 million and a net loss of $21 million for the three months ended March 31, 2019 and 2018, respectively, and are recognized in Other expenses. The changes in the fair value of an embedded derivative resulted in losses of nil and $2 million for the three months ended March 31, 2019 and 2018, respectively, and are recognized in Card Member services expense. |
Fair Values |
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Fair Value (Disclosures) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values | 10. Fair Values Financial Assets and Financial Liabilities Carried at Fair Value The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of March 31, 2019 and December 31, 2018:
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. Financial Assets and Financial Liabilities Carried at Other Than Fair Value The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of March 31, 2019 and December 31, 2018. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of March 31, 2019 and December 31, 2018, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.
Nonrecurring Fair Value Measurements We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. During the three months ended March 31, 2019 and the year ended December 31, 2018, we did not have any material assets that were measured at fair value due to impairment. Equity investments that are only adjusted through earnings for observable price changes are not material. |
Guarantees |
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Mar. 31, 2019 | |
Guarantees [Abstract] | |
Guarantees | 11. Guarantees The maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by us in the ordinary course of business were $1 billion and $34 million, respectively, as of March 31, 2019, and $1 billion and $46 million, respectively, as of December 31, 2018, all of which were primarily related to our real estate and business dispositions. To date, we have not experienced any significant losses related to guarantees or indemnifications. Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated. |
Changes in Accumulated Other Comprehensive (Loss) Income |
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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 months ended March 31, 2019 and 2018 were as follows:
Represents unrealized gains and losses pertaining to equity securities moved from AOCI to retained earnings as of January 1, 2018, due to the prospective adoption of the financial instruments guidance effective January 1, 2018. The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above:
The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the three months ended March 31, 2019 and 2018:
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Non-Interest Revenue and Expense Detail |
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Non-Interest Revenue and Expense Detail | 13. Other Fees and Commissions and Other Expenses The following is a detail of Other fees and commissions for the three months ended March 31:
Other includes Membership Rewards program fees that are not related to contracts with customers. Revenue expected to be recognized in future periods related to contracts that have an original expected duration of one year or less and contracts with variable consideration (e.g. discount revenue) are not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is not material. The following is a detail of Other expenses for the three months ended March 31:
Other expense primarily includes general operating expenses, a litigation-related charge, communication expenses, Card and merchant-related fraud losses, and unrealized gains on certain equity investments. |
Income Taxes |
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Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The effective tax rate was 20.8 percent and 21.5 percent for the three months ended March 31, 2019 and 2018, respectively. The change in tax rate primarily reflects the resolution of certain prior years’ tax items in the current period. We are under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which we have significant business operations. The tax years under examination and open for examination vary by jurisdiction. In 2018 we settled our US federal income tax audits for tax years 2008-2014, and the statute of limitations for these years remain open through 2019. Tax years from 2015 onwards are open for examination by the IRS. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next 12 months by as much as $113 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 $113 million of unrecognized tax benefits, approximately $95 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. |
Earnings Per Common Share (EPS) |
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Earnings Per Common Share (EPS) | 15. Earnings Per Common Share (EPS) The computations of basic and diluted EPS for the three months ended March 31 were as follows:
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Reportable Operating Segments | 16. Reportable Operating Segments During 2018, we realigned our reportable operating segments and also made changes to the methodology used to allocate certain corporate overhead costs to the operating segments and our intercompany settlement process. Effective for the first quarter of 2019, we moved intercompany assets and liabilities, previously recorded in the operating segments, to Corporate & Other. For all of the above referenced changes, prior period amounts have been revised to conform to the current period presentation. The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three months ended March 31:
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Significant Accounting Policies (Policies) |
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Mar. 31, 2019 | |
Policy (Text Block) [Abstract] | |
Basis of Presentation | The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, 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. In February 2016, the FASB issued new accounting guidance on leases. The accounting standard, effective January 1, 2019, requires virtually all leases to be recognized on the Consolidated Balance Sheets. Effective January 1, 2019, we adopted the standard using the modified retrospective method, under which we elected the package of practical expedients and transition provisions allowing us to bring our existing operating leases onto the Consolidated Balance Sheet without adjusting comparative periods. Under the guidance we have also elected not to separate lease and non-lease components in recognition of the lease-related assets and liabilities, as well as the related lease expense. We have operating leases for facilities and equipment, which are recorded as assets and liabilities for those leases with terms greater than 12 months. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. In conjunction with the adoption, we upgraded our lease administration software and updated our business processes and internal controls in support of the new guidance. |
Investments | Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets, with unrealized gains and losses recorded in AOCI, net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets The unrealized gains and losses on equity securities are recorded in the Consolidated Statements of Income. |
Asset Securitizations | We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors. The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts and therefore consolidate the Trusts. |
Contingencies | We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. |
Derivatives | We use derivative financial instruments to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates, foreign exchange rates, and an equity index or price, and are carried at fair value on the Consolidated Balance Sheets. 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. |
Guarantees | Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated. |
Loans and Accounts Receivable (Tables) |
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Loans and Accounts Receivable (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Card Member loans segment detail | Card Member loans by segment and Other loans as of March 31, 2019 and December 31, 2018 consisted of:
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Card Member receivables segment detail | Card Member accounts receivable by segment and Other receivables as of March 31, 2019 and December 31, 2018 consisted of:
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Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of March 31, 2019 and December 31, 2018:
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Credit quality indicators for loans and receivables | The following tables present the key credit quality indicators as of or for the three months ended March 31:
We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. |
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Impaired Card Member loans and receivables | The following tables provide additional information with respect to our impaired Card Member loans and receivables as of March 31, 2019 and December 31, 2018:
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Interest income recognized and average balance of impaired Card Member loans and receivables | The following table provides information with respect to our average balances and interest income recognized from impaired Card Member loans and the average balances of impaired Card Member receivables for the three months ended March 31:
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Troubled debt restructurings | The following table provides additional information with respect to Card Member loans and receivables modified as TDRs for the three months ended March 31, 2019 and 2018.
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Troubled debt restructurings that subsequently defaulted | The following table provides information with respect to Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A Card Member is considered in default of a modification program after one and up to two missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables.
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) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves For Losses Tables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31:
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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 March 31, 2019 and December 31, 2018:
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Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31:
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Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of March 31, 2019 and December 31, 2018:
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Investment Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of March 31, 2019 and December 31, 2018:
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Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table provides information about our investment securities with gross unrealized losses and the length of time that individual securities have been in an unrealized loss position as of March 31, 2019 and December 31, 2018:
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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 March 31, 2019 and December 31, 2018:
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Contractual maturities of investment securities | Contractual maturities for investment securities with stated maturities as of March 31, 2019 were as follows:
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Asset Securitizations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||
Restricted cash held by trusts | The following table provides information on the restricted cash held by the Trusts as of March 31, 2019 and December 31, 2018, included in Other assets on the Consolidated Balance Sheets:
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Customer Deposits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Deposits (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits By Component Alternative | As of March 31, 2019 and December 31, 2018, customer deposits were categorized as interest-bearing or non-interest-bearing as follows:
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Deposits By Type | Customer deposits by deposit type as of March 31, 2019 and December 31, 2018 were as follows:
The weighted average remaining maturity and weighted average interest rate at issuance on the total portfolio of U.S. retail certificates of deposit issued through direct and third-party programs were 47 months and 2.40 percent, respectively, as of March 31, 2019. |
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Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of March 31, 2019 were as follows:
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Time Deposits $250,000 Or More | As of March 31, 2019 and December 31, 2018, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows:
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Derivatives and Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments in statement of financial position, fair value | The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31, 2019 and December 31, 2018:
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Effect of fair value hedges on results of operations | The following table presents the gains and losses recognized in Interest expense associated with the fair value hedges of our fixed-rate long-term debt for the three months ended March 31:
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Fair Values (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assets and liabilities measured on recurring basis | The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of March 31, 2019 and December 31, 2018:
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. |
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Estimated fair value of financial assets and financial liabilities | The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of March 31, 2019 and December 31, 2018. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of March 31, 2019 and December 31, 2018, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.
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Changes in Accumulated Other Comprehensive (Loss) Income (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [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 months ended March 31, 2019 and 2018 were as follows:
Represents unrealized gains and losses pertaining to equity securities moved from AOCI to retained earnings as of January 1, 2018, due to the prospective adoption of the financial instruments guidance effective January 1, 2018. |
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Accumulated Other Comprehensive Loss Income - Tax Effect | The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above:
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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 for the three months ended March 31, 2019 and 2018:
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Non-Interest Revenue and Expense Detail (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Cost And Expense Disclosure Operating (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of other commissions and fees | The following is a detail of Other fees and commissions for the three months ended March 31:
Other includes Membership Rewards program fees that are not related to contracts with customers. |
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Detail of other, net expense | The following is a detail of Other expenses for the three months ended March 31:
Other expense primarily includes general operating expenses, a litigation-related charge, communication expenses, Card and merchant-related fraud losses, and unrealized gains on certain equity investments. |
Earnings Per Common Share (EPS) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Reconciliation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the three months ended March 31 were as follows:
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Reportable Operating Segment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating segment information | The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three months ended March 31:
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Basis of Presentation (Details Textuals) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Property, Plant and Equipment [Line Items] | |
Right-Of-Use Asset Obtained In Exchange For Operating Lease Liability | $ 700 |
Business Events (Details Textuals) $ in Billions |
Mar. 31, 2018
USD ($)
|
---|---|
Business Events (Line Items) | |
Value of outstanding principal and interest of purchased loans at acquisition of the acquired Hilton portfolio | $ 1 |
Loans and Accounts Receivable (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Loans segment information | ||||
Card Member loans | $ 80,995 | $ 81,854 | ||
Less: Reserve for losses | 2,121 | 2,134 | $ 1,786 | $ 1,706 |
Card Member loans, net | 78,874 | 79,720 | ||
Other loans, less reserves | 3,965 | 3,676 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Card Member loans | 80,995 | 81,854 | ||
Other loans, reserves | 129 | 124 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans | 31,495 | 33,194 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Card Member loans | 31,495 | 33,194 | ||
Global Consumer Services Group [Member] | ||||
Loans segment information | ||||
Card Member loans | 67,938 | 69,458 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Card Member loans | 67,938 | 69,458 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans | 13,057 | 12,396 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Card Member loans | $ 13,057 | $ 12,396 |
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Accounts receivable segment information | ||||
Card Member receivables | $ 56,835 | $ 55,893 | ||
Less: Reserve for losses | 608 | 573 | $ 565 | $ 521 |
Card Member receivables, net | 56,227 | 55,320 | ||
Other receivables, net | 3,128 | 2,907 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 25 | 25 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 7,758 | 8,539 | ||
Global Consumer Services Group [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 19,929 | 21,455 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 36,906 | $ 34,438 |
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | $ 56,835 | $ 55,893 |
Card Member loans total aging | 80,995 | 81,854 |
Global Consumer Services Group [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 19,929 | 21,455 |
Card Member loans total aging | 67,938 | 69,458 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 66,916 | 68,442 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 19,667 | 21,207 |
Global Consumer Services Group [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 286 | 290 |
Global Consumer Services Group [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 85 | 80 |
Global Consumer Services Group [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 216 | 220 |
Global Consumer Services Group [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 58 | 50 |
Global Consumer Services Group [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 520 | 506 |
Global Consumer Services Group [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 119 | 118 |
Global Commercial Services [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 36,906 | 34,438 |
Card Member loans total aging | 13,057 | 12,396 |
Global Small Business Services [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 17,347 | 16,728 |
Card Member loans total aging | 12,991 | 12,351 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 12,824 | 12,195 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 17,061 | 16,460 |
Global Small Business Services [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 53 | 51 |
Global Small Business Services [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 105 | 101 |
Global Small Business Services [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 38 | 32 |
Global Small Business Services [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 62 | 53 |
Global Small Business Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 76 | 73 |
Global Small Business Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 119 | 114 |
Global Corporate Payments [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 19,559 | 17,710 |
Card Member loans total aging | 66 | 45 |
Global Corporate Payments [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 0 | 0 |
Global Corporate Payments [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | $ 125 | $ 129 |
Loans and Accounts Receivable (Details 3) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Global Consumer Services Group [Member] | Card Member Loans [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.023 | 0.02 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.028 | 0.024 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.015 | 0.014 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.017 | 0.016 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.019 | 0.017 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.013 | 0.014 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | Net Loss Ratio as a % of Charge Volume [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.0008 | 0.001 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | 90 days past billing as a percentage of receivables [Member} | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.006 | 0.008 |
Global Small Business Services [Member] | Card Member Loans [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.018 | 0.016 |
Global Small Business Services [Member] | Card Member Loans [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.021 | 0.019 |
Global Small Business Services [Member] | Card Member Loans [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.013 | 0.013 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.019 | 0.017 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.021 | 0.019 |
Global Small Business Services [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.016 | 0.018 |
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $ 391 | $ 387 |
Non-accrual loans | 299 | 279 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 526 | 462 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 207 | 198 |
Total impaired loans and receivables | 1,423 | 1,326 |
Unpaid principal balance | 1,292 | 1,212 |
Related allowance for Troubled Debt Restructurings | 115 | 101 |
Accounts Receivable and Loans Textuals [Abstract] | ||
Total loans and receivables modified as a TDR, non-accrual | 12 | 6 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 20 | 17 |
Out of Program TDR accounts that completed modification programs | 156 | 148 |
Out of Program TDR accounts not in compliance with modification programs | 51 | 50 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 348 | 344 |
Non-accrual loans | 250 | 236 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 354 | 313 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 137 | 131 |
Total impaired loans and receivables | 1,089 | 1,024 |
Unpaid principal balance | 972 | 923 |
Related allowance for Troubled Debt Restructurings | 93 | 80 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | Non Us [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 77 | 69 |
Unpaid principal balance | 64 | 68 |
Global Consumer Services Group [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 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 35 | 29 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 12 | 13 |
Total impaired loans and receivables | 47 | 42 |
Unpaid principal balance | 47 | 42 |
Related allowance for Troubled Debt Restructurings | 3 | 2 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 43 | 43 |
Non-accrual loans | 49 | 43 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 67 | 59 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 30 | 29 |
Total impaired loans and receivables | 189 | 174 |
Unpaid principal balance | 176 | 161 |
Related allowance for Troubled Debt Restructurings | 15 | 14 |
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 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 70 | 61 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 28 | 25 |
Total impaired loans and receivables | 98 | 86 |
Unpaid principal balance | 97 | 86 |
Related allowance for Troubled Debt Restructurings | $ 4 | $ 5 |
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | $ 1,375 | $ 1,027 |
Interest income recognized | 37 | 31 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 1,057 | 801 |
Interest income recognized | 31 | 26 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 45 | 27 |
Interest income recognized | 0 | 0 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 181 | 136 |
Interest income recognized | 6 | 5 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 92 | 63 |
Interest income recognized | $ 0 | $ 0 |
Loans and Accounts Receivable (Details 6) pure in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
M
bp
|
Mar. 31, 2018
USD ($)
M
bp
|
|
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts (in thousands) | 19 | 12 |
Aggregated Outstanding Balance | $ 168 | $ 110 |
Card Member Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts (in thousands) | 17 | 11 |
Aggregated Outstanding Balance | $ 128 | $ 81 |
Average Interest Rate Reduction By Class Of Financial Instrument | bp | 13 | 11 |
Card Member Receivables [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts (in thousands) | 2 | 1 |
Aggregated Outstanding Balance | $ 40 | $ 29 |
Average payment term extension | M | 27 | 28 |
Loans and Accounts Receivable (Details 7) pure in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
|
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts (in thousands) | 3 | 3 |
Aggregated Outstanding Balance Upon Payment Default | $ 21 | $ 11 |
Card Member Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts (in thousands) | 2 | 2 |
Aggregated Outstanding Balance Upon Payment Default | $ 17 | $ 9 |
Card Member Receivables [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts (in thousands) | 1 | 1 |
Aggregated Outstanding Balance Upon Payment Default | $ 4 | $ 2 |
Reserves for Losses (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Changes in the Card Member loans reserve for losses [Line Items] | ||
Balance, January 1 | $ 2,134 | $ 1,706 |
Card Member loans provisions | 525 | 499 |
Ending Balance | 2,121 | 1,786 |
Other | 11 | 10 |
Provisions for loans and lease losses deductions net write offs principal | ||
Changes in the Card Member loans reserve for losses [Line Items] | ||
Net Write-Offs Principal, Interest and Fees | (457) | (358) |
Provisions for loans and lease losses deductions net write offs interest and fees | ||
Changes in the Card Member loans reserve for losses [Line Items] | ||
Net Write-Offs Principal, Interest and Fees | $ (92) | $ (71) |
Reserves For Losses (Details 1) - Card member loans evaluated separately and collectively for impairment [Member] - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Line Items] | ||
Card Member loans evaluated separately for impairment | $ 588 | $ 532 |
Reserves on Card Member loans evaluated separately for impairment | 108 | 94 |
Card Member loans evaluated collectively for impairment | 80,407 | 81,322 |
Reserves on Card Member loans evaluated collectively for impairment | $ 2,013 | $ 2,040 |
Reserves for Losses (Details 2) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Accounts Receivable Reserve Roll Forward [line Items] | ||
Balance, January 1 | $ 573 | $ 521 |
Provision For Doubtful Accounts | 253 | 242 |
Card Member receivables net write-offs | (216) | (199) |
Other | (2) | 1 |
Ending Balance | $ 608 | $ 565 |
Reserves for Losses (Details 3) - Card Member Receivables Evaluated Separately And Collectively For Impairment [Member] - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Line Items] | ||
Card Member receivables evaluated separately for impairment | $ 145 | $ 128 |
Reserves on Card Member receivables evaluated separately for impairment | 7 | 7 |
Card Member receivables evaluated collectively for impairment | 56,690 | 55,765 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 601 | $ 566 |
Reserves For Losses (Details Textuals) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables net write-offs | $ (216) | $ (199) |
Allowance for Card Member Receivables, Recoveries of Bad Debts | 91 | 90 |
Allowance for Card Member Loans, Recoveries of Bad Debts | 124 | 106 |
Other | 11 | 10 |
Other | (2) | 1 |
Foreign Currency Translation Adjustments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other | 6 | 6 |
Other | 3 | 10 |
Other Items [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other | 5 | 4 |
Other | (5) | (9) |
Troubled Debt Restructuring [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Card Member Receivables, Recoveries of Bad Debts | (4) | 2 |
Allowance for Card Member Loans, Recoveries of Bad Debts | $ (15) | $ (7) |
Investment Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
AvailableForSaleSecuritiesAbstract | ||
Cost | $ 6,448 | $ 4,659 |
Gross Unrealized Gains | 22 | 10 |
Gross Unrealized Losses | (13) | (22) |
Estimated Fair Value | 6,457 | 4,647 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
AvailableForSaleSecuritiesAbstract | ||
Cost | 342 | 594 |
Gross Unrealized Gains | 6 | 4 |
Gross Unrealized Losses | (1) | (2) |
Estimated Fair Value | 347 | 596 |
U.S. Government agency obligations [Member] | ||
AvailableForSaleSecuritiesAbstract | ||
Cost | 10 | 10 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 10 | 10 |
U.S. Government treasury obligations [Member] | ||
AvailableForSaleSecuritiesAbstract | ||
Cost | 5,404 | 3,452 |
Gross Unrealized Gains | 14 | 5 |
Gross Unrealized Losses | (9) | (17) |
Estimated Fair Value | 5,409 | 3,440 |
Corporate debt securities [Member] | ||
AvailableForSaleSecuritiesAbstract | ||
Cost | 29 | 28 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 29 | 28 |
Mortgage-backed securities [Member] | ||
AvailableForSaleSecuritiesAbstract | ||
Cost | 48 | 50 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 49 | 51 |
Equity securities [Member] | ||
AvailableForSaleSecuritiesAbstract | ||
Cost | 50 | 51 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (3) |
Estimated Fair Value | 47 | 48 |
Foreign government bonds and obligations [Member] | ||
AvailableForSaleSecuritiesAbstract | ||
Cost | 565 | 474 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 566 | $ 474 |
Investment Securities (Details 1) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 224 |
Estimated Fair Value, 12 months or more | 1,050 | 873 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 Months | 0 | (2) |
Gross Unrealized Losses, 12 months or more | (10) | (16) |
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 |
Estimated Fair Value, 12 months or more | 52 | 82 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | (1) | (1) |
U.S. Government treasury obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 224 |
Estimated Fair Value, 12 months or more | 998 | 791 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 Months | 0 | (2) |
Gross Unrealized Losses, 12 months or more | $ (9) | $ (15) |
Investment Securities (Details 2) $ in Millions |
Mar. 31, 2019
USD ($)
securities
|
Dec. 31, 2018
USD ($)
securities
|
---|---|---|
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 0 | 2 |
Number of securities, 12 months or more | securities | 26 | 29 |
Number of securities, total | securities | 26 | 31 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 0.0 | $ 224.0 |
Estimated Fair Value, 12 months or more | 1,050.0 | 873.0 |
Estimated Fair Value, Total | 1,050.0 | 1,097.0 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 Months | 0.0 | (2.0) |
Gross Unrealized Losses, 12 months or more | (10.0) | (16.0) |
Gross Unrealized Losses, Total | $ (10.0) | $ (18.0) |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 0 | 2 |
Number of securities, 12 months or more | securities | 26 | 29 |
Number of securities, total | securities | 26 | 31 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 0.0 | $ 224.0 |
Estimated Fair Value, 12 months or more | 1,050.0 | 873.0 |
Estimated Fair Value, Total | 1,050.0 | 1,097.0 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 Months | 0.0 | (2.0) |
Gross Unrealized Losses, 12 months or more | (10.0) | (16.0) |
Gross Unrealized Losses, Total | $ (10.0) | $ (18.0) |
Investment Securities (Details 3) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | $ 4,599 |
Due after 1 year but within 5 years | 1,315 |
Due after 5 years but within 10 years | 179 |
Due after 10 years | 305 |
Total | 6,398 |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 4,600 |
Estimated Fair Value, Due after 1 year but within 5 years | 1,319 |
Estimated Fair Value, Due after 5 years but within 10 years | 181 |
Estimated Fair Value, Due after 10 years | 310 |
Total | $ 6,410 |
Asset Securitizations (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Assets from Trusts [Line Items] | ||||
Restricted cash included in Other assets per Consolidated Balance Sheets | $ 454.0 | $ 363.0 | $ 414.0 | $ 336.0 |
Variable Interest Entity | ||||
Assets from Trusts [Line Items] | ||||
Restricted cash included in Other assets per Consolidated Balance Sheets | 84.0 | 70.0 | ||
American Express Charge Trust [Member] | Variable Interest Entity | ||||
Assets from Trusts [Line Items] | ||||
Restricted cash included in Other assets per Consolidated Balance Sheets | 1.0 | 3.0 | ||
American Express Lending Trust [Member] | Variable Interest Entity | ||||
Assets from Trusts [Line Items] | ||||
Restricted cash included in Other assets per Consolidated Balance Sheets | $ 83.0 | $ 67.0 |
Asset Securitizations (Details Textuals) $ in Billions |
Mar. 31, 2019
USD ($)
|
---|---|
American Express Charge Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 7.8 |
American Express Lending Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 12.3 |
Customer Deposits (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
U.S.: | ||
Interest-bearing | $ 72,110 | $ 69,144 |
Non-interest-bearing | 368 | 412 |
Non-U.S.: | ||
Interest-bearing | 27 | 28 |
Non-interest-bearing | 352 | 376 |
Total customer deposits | 72,857 | 69,960 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 334 | 376 |
Non-U.S.: | ||
Non-interest-bearing | $ 343 | $ 367 |
Customer Deposits (Details 1) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
U.S. retail deposits: | ||
Savings accounts - Direct | $ 43,345 | $ 39,491 |
Certificates of deposit - Direct | 1,107 | 817 |
Certificates of deposit - Third party | 12,189 | 12,667 |
Sweep accounts - Third party | 15,469 | 16,169 |
Other retail deposits: | ||
U.S. non-interest bearing deposits, Other | 34 | 36 |
Non-US Deposits, Other | 36 | 37 |
Card Member credit balances - U.S. and non-U.S. | 677 | 743 |
Total customer deposits | $ 72,857 | $ 69,960 |
Customer Deposits (Details 2) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Time Deposits By Maturity | |
2019 | $ 4,262,000 |
2020 | 4,410,000 |
2021 | 1,937,000 |
2022 | 2,292,000 |
2023 | 327,000 |
After 5 years | 85,000 |
Total | 13,313,000 |
United States [Member] | |
Time Deposits By Maturity | |
2019 | 4,249,000 |
2020 | 4,406,000 |
2021 | 1,937,000 |
2022 | 2,292,000 |
2023 | 327,000 |
After 5 years | 85,000 |
Total | 13,296,000 |
Non United States [Member] | |
Time Deposits By Maturity | |
2019 | 13,000 |
2020 | 4,000 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
After 5 years | 0 |
Total | $ 17,000 |
Customer Deposits (Details 3) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 380 | $ 285 |
United States [Member] | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | 373 | 276 |
Non Us [Member] | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 7 | $ 9 |
Customer Deposits (Details Textuals) |
Mar. 31, 2019
M
|
---|---|
Customer Deposits Textuals [Abstract] | |
Weighted Average Rate Domestic Deposit Certificates Of Deposit | 2.40% |
Weighted Average Maturity of Certificates of Deposits (in Months) | 47 |
Contingencies (Details Textuals) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Loss Contingencies [Line Items] | |
Loss Contingency Estimate Of Possible Loss | $ 240 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Estimate Of Possible Loss | $ 0 |
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | $ 255 | $ 514 |
Total fair value of derivative liabilities | 362 | 214 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset and liability netting | (105) | (90) |
Total derivatives assets, net | 104 | 396 |
Cash collateral netting, Assets | (46) | (28) |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 108 | 256 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 66 | 34 |
Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 42 | 222 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 147 | 258 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset and liability netting | (105) | (90) |
Total derivative liabilities, net | 222 | 46 |
Cash collateral netting, Liabilities | (35) | (78) |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | 177 | 135 |
Other Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, net | 39 | 74 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, net | 138 | 61 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | $ 185 | $ 79 |
Derivatives and Hedging Activities (Details 1) - Interest Expense [Member] - Interest Rate Contracts [Member] - Fair Value Hedges [Member] - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fixed-rate long-term debt | $ (160) | $ 210 |
Derivatives designated as hedging instruments | 158 | (191) |
Total | $ (2) | $ 19 |
Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Derivatives and Hedging Activities (Textuals) [Abstract] | |||
Net reduction in interest expense on long term debt and other | $ (38) | $ 14 | |
Derivative asset not offset | 0 | $ 0 | |
Derivative liabilities not offset | 0 | 0 | |
Margin On Interest Rate Swap Not Netted | 70 | 84 | |
Derivative [Line Items] | |||
Cumulative amount of fair value hedging adjustment | (81) | (241) | |
Other Expense [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) in Changes of Fair Value of Derivatives not designated as hedges | 4 | (21) | |
Gain on embedded derivatives | 0 | (2) | |
Fair Value Hedges [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 22,800 | 24,000 | |
Net Investment Hedges [Member] | |||
Derivative [Line Items] | |||
Effective portion of gain (loss) on hedges | (162) | (162) | |
Notional Amount of Foreign Currency Derivatives | 9,500 | 9,600 | |
Net Investment Hedges [Member] | Other Expense [Member] | |||
Derivative [Line Items] | |||
Amount reclassified from AOCI into income | 0 | $ 1 | |
Carrying Value [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | $ 22,600 | $ 23,700 |
Fair Values (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Investment securities: | ||
Equity securities | $ 47 | $ 48 |
Debt securities | 6,410 | 4,599 |
Derivative assets | 255 | 514 |
AssetsFairValueDisclosure | 6,712 | 5,161 |
Liabilities | ||
Derivative liabilities | 362 | 214 |
LiabilitiesFairValueDisclosure | 362 | 214 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities | 1 | 1 |
Debt securities | 0 | 0 |
Derivative assets | 0 | 0 |
AssetsFairValueDisclosure | 1 | 1 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
LiabilitiesFairValueDisclosure | 0 | 0 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities | 46 | 47 |
Debt securities | 6,410 | 4,599 |
Derivative assets | 255 | 514 |
AssetsFairValueDisclosure | 6,711 | 5,160 |
Liabilities | ||
Derivative liabilities | 362 | 214 |
LiabilitiesFairValueDisclosure | 362 | 214 |
Level 3 [Member] | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities | 0 | 0 |
Derivative assets | 0 | 0 |
AssetsFairValueDisclosure | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
LiabilitiesFairValueDisclosure | $ 0 | $ 0 |
Fair Values (Details 2) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | $ 33,177 | $ 27,445 | $ 31,092 | $ 32,927 |
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,313 | |||
Long-term debt | 58,418 | 58,423 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 56,227 | 55,320 | ||
Card Member loans, net | 78,874 | 79,720 | ||
Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 19,538 | 19,509 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | 33,000 | 27,000 | ||
Other financial assets | 60,000 | 58,000 | ||
Financial assets carried at other than fair value | ||||
Loans, Net | 83,000 | 83,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 88,000 | 81,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,000 | 13,000 | ||
Long-term debt | 58,000 | 58,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | 33,000 | 27,000 | ||
Other financial assets | 60,000 | 58,000 | ||
Financial assets carried at other than fair value | ||||
Loans, Net | 83,000 | 84,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 88,000 | 81,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,000 | 13,000 | ||
Long-term debt | 60,000 | 59,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 19,600 | 19,400 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 7,700 | 8,500 | ||
Card Member loans, net | 31,300 | 33,000 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | 32,000 | 26,000 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, Net | 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 per Consolidated Balance Sheets | 1,000 | 1,000 | ||
Other financial assets | 60,000 | 58,000 | ||
Financial assets carried at other than fair value | ||||
Loans, Net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 88,000 | 81,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,000 | 13,000 | ||
Long-term debt | 60,000 | 59,000 | ||
Level 3 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | 0 | 0 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, Net | 83,000 | 84,000 | ||
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) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value for impairment | $ 0 | $ 0 |
Guarantees (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | $ 1,000 |
Amount of related liability | $ 34 | $ 46 |
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | $ (2,597) | |
Net unrealized Pension and other postretirement benefits, net of tax | (27) | $ 28 |
Balance as of end of period | (2,599) | |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||
Investment securities | 4 | (3) |
Foreign currency translation adjustments | 14 | 2 |
Net investment hedges | (50) | (54) |
Pension and other postretirement benefits | (11) | 3 |
Total tax impact | (43) | (52) |
Accumulated Other Comprehensive Loss [Member] | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (2,597) | (2,428) |
Net unrealized gains | 17 | (13) |
Net translation of investments in foreign operations | 170 | 192 |
Net gains (losses) related to hedges of investment in foreign operations | (162) | (162) |
Net unrealized Pension and other postretirement benefits, net of tax | (27) | 28 |
Other - Net Unrealized Gains (Losses) on Equity Securities | 2 | |
Net change in accumulated other comprehensive (loss) income | (2) | 47 |
Balance as of end of period | (2,599) | (2,381) |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (8) | 0 |
Net unrealized gains | 17 | (13) |
Net translation of investments in foreign operations | 0 | 0 |
Net gains (losses) related to hedges of investment in foreign operations | 0 | 0 |
Net unrealized Pension and other postretirement benefits, net of tax | 0 | 0 |
Other - Net Unrealized Gains (Losses) on Equity Securities | 2 | |
Net change in accumulated other comprehensive (loss) income | 17 | (11) |
Balance as of end of period | 9 | (11) |
Foreign Currency Translation Adjustments [Member] | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (2,133) | (1,961) |
Net unrealized gains | 0 | 0 |
Net translation of investments in foreign operations | 170 | 192 |
Net gains (losses) related to hedges of investment in foreign operations | (162) | (162) |
Net unrealized Pension and other postretirement benefits, net of tax | 0 | 0 |
Other - Net Unrealized Gains (Losses) on Equity Securities | 0 | |
Net change in accumulated other comprehensive (loss) income | 8 | 30 |
Balance as of end of period | (2,125) | (1,931) |
Net Unrealized Pension and Other Postretirement Gains (Losses) [Member] | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (456) | (467) |
Net unrealized gains | 0 | 0 |
Net translation of investments in foreign operations | 0 | 0 |
Net gains (losses) related to hedges of investment in foreign operations | 0 | 0 |
Net unrealized Pension and other postretirement benefits, net of tax | (27) | 28 |
Other - Net Unrealized Gains (Losses) on Equity Securities | 0 | |
Net change in accumulated other comprehensive (loss) income | (27) | 28 |
Balance as of end of period | $ (483) | $ (439) |
Changes in Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expenses | $ (1,601) | $ (1,434) |
Reclassification out of accumulated other comprehensive income [Member] | Foreign Currency Translation Adjustments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expenses | 0 | 1 |
Income tax provision for other, net expense | 0 | (1) |
Other, net expense, net of taxes | $ 0 | $ 0 |
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Non Interest Income [Line Items] | ||
Delinquency fees | $ 251 | $ 242 |
Foreign currency conversion fee revenue | 230 | 225 |
Loyalty Partner-related fees | 114 | 111 |
Travel commissions and fees | 108 | 99 |
Service fees | 100 | 104 |
Other Fees and Commissions | ||
Non Interest Income [Line Items] | ||
Revenues and Fees | $ 803 | $ 781 |
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Professional services | $ 494 | $ 457 |
Occupancy and equipment | 508 | 520 |
Other | 599 | 457 |
Total other, net | $ 1,601 | $ 1,434 |
Income Taxes (Details Textuals) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Income Taxes (Textuals) | |||
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax | $ 113 | ||
Actual tax rates | 20.80% | 21.50% | |
Unrecognized tax benefits that, if recognized, could impact effective tax rate. | $ 95 | ||
Internal Revenue Service (IRS) [Member] | Earliest Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years by major tax jurisdiction | 2015 | ||
Tax Audit Settlement Years | 2008 | ||
Internal Revenue Service (IRS) [Member] | Latest Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Audit Settlement Years | 2014 |
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||
Basic and diluted: | |||||
Net income | $ 1,550 | $ 1,634 | |||
Preferred dividends | (21) | (21) | |||
Net Income Loss Available to Common Shareholders | 1,529 | 1,613 | |||
Earnings allocated to participating share awards | (11) | (13) | |||
Net Income Attributable to Common Shareholders | $ 1,518 | $ 1,600 | |||
Denominator: | |||||
Basic | 841 | 859 | |||
Add: Weighted-average stock options | 2 | 2 | |||
Diluted | 843 | 861 | |||
Earnings Per Common Share, Basic (Note 15) [Abstract] | |||||
Net income attributable to common shareholders | [1] | $ 1.81 | $ 1.86 | ||
Earnings Per Common Share, Diluted (Note 15) [Abstract] | |||||
Net income attributable to common shareholders | [1] | $ 1.8 | $ 1.86 | ||
Stock options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per Share, amount | 900,000 | 600,000 | |||
|
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
||||
Segment Reporting Information [Line Items] | ||||||
Non-interest revenues | $ 8,305 | $ 7,877 | ||||
Revenue from contracts with customers | [1] | 6,697 | 6,387 | |||
Interest income | 2,954 | 2,462 | ||||
Interest expense | 895 | 621 | ||||
Total revenues, net of interest expense | 10,364 | 9,718 | ||||
Net income | 1,550 | 1,634 | ||||
Total assets | 197,193 | 180,000 | $ 188,602 | |||
Global Consumer Services Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Non-interest revenues | 3,741 | 3,491 | ||||
Revenue from contracts with customers | [1] | 2,578 | 2,438 | |||
Interest income | 2,272 | 1,949 | ||||
Interest expense | 459 | 327 | ||||
Total revenues, net of interest expense | 5,554 | 5,113 | ||||
Net income | 821 | 826 | ||||
Total assets | 98,500 | 91,000 | ||||
Global Commercial Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Non-interest revenues | 3,020 | 2,838 | ||||
Revenue from contracts with customers | [1] | 2,607 | 2,454 | |||
Interest income | 454 | 377 | ||||
Interest expense | 241 | 171 | ||||
Total revenues, net of interest expense | 3,233 | 3,044 | ||||
Net income | 586 | 546 | ||||
Total assets | 54,000 | 51,000 | ||||
Global Merchant and Network Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Non-interest revenues | 1,525 | 1,532 | ||||
Revenue from contracts with customers | [1] | 1,503 | 1,491 | |||
Interest income | 9 | 9 | ||||
Interest expense | (93) | (59) | ||||
Total revenues, net of interest expense | 1,627 | 1,600 | ||||
Net income | 631 | 516 | ||||
Total assets | 22,100 | 20,000 | ||||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Non-interest revenues | 19 | 16 | ||||
Revenue from contracts with customers | [1] | 9 | 4 | |||
Interest income | 219 | 127 | ||||
Interest expense | 288 | 182 | ||||
Total revenues, net of interest expense | (50) | (39) | ||||
Net income | (488) | (254) | ||||
Total assets | $ 22,400 | $ 18,000 | ||||
|
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