Fair Values (Tables)

12 Months Ended

Dec. 31, 2021

Fair value assets and liabilities measured on recurring basis

The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy (as described in the preceding paragraphs), as of December 31:


	2021								2020
(Millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Investment securities: (a)
Equity securities	$	79	$	78	$	1	$	—	$	81	$	80	$	1	$	—
Debt securities	2,512		—		2,480		32		21,550		—		21,550		—
Derivatives, gross (a)	590		—		590		—		629		—		629		—
Total Assets	3,181		78		3,071		32		22,260		80		22,180		—
Liabilities:
Derivatives, gross (a)	139		—		139		—		702		—		702		—
Total Liabilities	$	139	$	—	$	139	$	—	$	702	$	—	$	702	$	—

(a)Refer to Note 4 for the fair values of investment securities and to Note 13 for the fair values of derivative assets and liabilities, on a further disaggregated basis.

Estimated fair value of financial assets and financial liabilities

The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of December 31, 2021 and 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2021 and 2020, 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.


2021 (Billions)	Carrying Value		Corresponding Fair Value Amount
			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)	$	22	$	22	$	20	$	2	$	—
Other financial assets(b)	56		56		—		56		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves(c)	88		91		—		—		91

Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	105		105		—		105		—
Financial liabilities carried at other than fair value
Certificates of deposit(d)	5		5		—		5		—
Long-term debt(c)	$	39	$	40	$	—	$	40	$	—


2020 (Billions)	Carrying Value		Corresponding Fair Value Amount
			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	$	31	$	2	$	—
Other financial assets(b)	46		46		—		46		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves(c)	71		75		—		—		75

Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101		101		—		101		—
Financial liabilities carried at other than fair value
Certificates of deposit(d)	8		8		—		8		—
Long-term debt(c)	$	43	$	45	$	—	$	45	$	—

(a)Level 2 fair value amounts reflect time deposits and short-term investments.

(b)Balances include Card Member receivables (including fair values of Card Member receivables of $5.2 billion and $4.2 billion held by a consolidated VIE as of December 31, 2021 and 2020, respectively), other receivables and other miscellaneous assets.

(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $26.7 billion and $25.8 billion as of December 31, 2021 and 2020, respectively, and the fair values of Long-term debt were $13.9 billion and $13.0 billion as of December 31, 2021 and 2020, respectively.

(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.