XML 42 R32.htm IDEA: XBRL DOCUMENT v3.22.2
Fair Values (Tables)
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [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 June 30, 2022 and December 31, 2021:
20222021
(Millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Assets:
Investment securities: (a)
Equity securities$49 $48 $1 $— $79 $78 $1 $— 
Debt securities
4,016 — 3,984 32 2,512 — 2,480 32 
Derivatives, gross (a)(b)
766 — 747 19 590 — 590 — 
Total Assets4,831 48 4,732 51 3,181 78 3,071 32 
Liabilities:
Derivatives, gross (a)
306 — 306 — 139 — 139 — 
Total Liabilities$306 $— $306 $— $139 $— $139 $— 
(a)Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis.
(b)Level 3 fair value reflects an embedded derivative. Management reviews and applies judgment to the valuation of the embedded derivative that is performed by an independent third party using a Monte Carlo simulation that models a range of probable future stock prices based on implied volatility in a risk neutral framework. Refer to Note 8 for additional information about this embedded derivative.
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 June 30, 2022 and December 31, 2021. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of June 30, 2022 and December 31, 2021, 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.
Carrying
Value		Corresponding Fair Value Amount
2022 (Billions)TotalLevel 1Level 2Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)
$26 $26 $24 $2 $— 
Other financial assets (b)
59 59 — 59 — 
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)
96 99 — — 99 
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value114 114 — 114 — 
Financial liabilities carried at other than fair value
Certificates of deposit (d)
8 8 — 8 — 
Long-term debt (c)
$40 $41 $— $41 $— 
Carrying
Value		Corresponding Fair Value Amount
2021 (Billions)TotalLevel 1Level 2Level 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 value105 105 — 105 — 
Financial liabilities carried at other than fair value
Certificates of deposit (d)
5 5 — 5 — 
Long-term debt (c)
$39 $40 $— $40 $— 
(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 $5.8 billion and $5.2 billion held by a consolidated VIE as of June 30, 2022 and December 31, 2021, 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 $26.9 billion and $26.7 billion as of June 30, 2022 and December 31, 2021, respectively, and the fair values of Long-term debt were $11.8 billion and $13.9 billion as of June 30, 2022 and December 31, 2021, respectively.
(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.