10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2015

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the Transition Period from          to         

Commission file No. 1-6908

AMERICAN EXPRESS CREDIT CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	11-1988350
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
200 Vesey Street New York, NY	10285
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 640-2000

None

(Former name, former address and former fiscal year, if changed since last report.)

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND HAS THEREFORE OMITTED CERTAIN ITEMS FROM THIS REPORT IN ACCORDANCE WITH THE REDUCED DISCLOSURE FORMAT PERMITTED UNDER GENERAL INSTRUCTION H(2).

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

            x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

            x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer x	Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

            ¨ Yes x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at November 6, 2015
Common Stock (par value $0.10 per share)	1,504,938 Shares

AMERICAN EXPRESS CREDIT CORPORATION

FORM 10-Q

INDEX

Part I.	Financial Information		Page No.
	Item 1.	Financial Statements
		Consolidated Statements of Income and Retained Earnings – Three and Nine Months Ended September 30, 2015 and 2014		1
		Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2015 and 2014		2
		Consolidated Balance Sheets – September 30, 2015 and December 31, 2014		3
		Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2015 and 2014		4
		Notes to Consolidated Financial Statements		5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
	Item 4.	Controls and Procedures		27
Part II.	Other Information
	Item 1A.	Risk Factors		28
	Item 5.	Other Information		28
	Item 6.	Exhibits		28
	Signatures			29
	Exhibit Index			E-1

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

AND RETAINED EARNINGS

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(Millions)	2015		2014		2015		2014
Revenues
Discount revenue earned from purchased Card Member receivables and loans	$	126	$	116	$	359	$      386
Interest income from affiliates and other		53		105		194	297
Finance revenue		8		11		22	36
Total revenues		187		232		575	719
Expenses
Provisions for losses		46		42		120	151
Interest expense		83		131		283	390
Interest expense to affiliates		3		2		7	5
Other, net		10		(29)		(19)	(76)
Total expenses		142		146		391	470
Pretax income		45		86		184	249
Income tax provision (benefit)		6		(1)		28	(15)
Net income		39		87		156	264
Retained earnings at beginning of period		3,072		3,025		3,015	3,004
Dividends		(16)		(99)		(76)	(255)
Retained earnings at end of period	$	3,095	$	3,013	$	3,095	$    3,013

See Notes to Consolidated Financial Statements.

1

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(Millions)	2015		2014		2015		2014
Net income	$	39	$	87	$	156	$       264
Other comprehensive loss:
Foreign currency translation adjustments, net of tax: 2015, $112 and $163; 2014, $69 and $(6)		(188)		(129)		(342)	(110)
Other comprehensive loss		(188)		(129)		(342)	(110)
Comprehensive (loss) income	$	(149)	$	(42)	$	(186)	$       154

See Notes to Consolidated Financial Statements.

2

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions, except share data)	September 30, 2015		December 31, 2014
Assets
Cash and cash equivalents	$	135	$	74
Card Member receivables, less reserves: 2015, $109; 2014, $94		18,222		14,413
Card Member loans, less reserves: 2015, $4; 2014, $3		387		398
Loans to affiliates and other		9,818		15,303
Due from affiliates		1,009		2,206
Other assets		417		446
Total assets	$	29,988	$	32,840
Liabilities and Shareholder’s Equity
Liabilities
Short-term debt	$	375	$	769
Short-term debt to affiliates		5,033		4,334
Long-term debt		21,296		24,282
Total debt		26,704		29,385
Due to affiliates		1,044		888
Accrued interest and other liabilities		113		178
Total liabilities		27,861		30,451
Shareholder’s Equity
Common stock, $0.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares		—		—
Additional paid-in capital		161		161
Retained earnings		3,095		3,015
Accumulated other comprehensive loss
Foreign currency translation adjustments, net of tax: 2015, $255; 2014, $92		(1,129)		(787)
Total accumulated other comprehensive loss		(1,129)		(787)
Total shareholder’s equity		2,127		2,389
Total liabilities and shareholder’s equity	$	29,988	$	32,840

See Notes to Consolidated Financial Statements.

3

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended September 30, (Millions)		2015		2014
Cash Flows from Operating Activities
Net income	$	156		$      264
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for losses		120		151
Amortization of underwriting expense		24		18
Deferred taxes		8		2
Changes in operating assets and liabilities:
Interest, taxes and other amounts due to/from affiliates		(123	)	124
Other operating assets and liabilities		413		(551)
Net cash provided by operating activities		598		8
Cash Flows from Investing Activities
Net increase in Card Member receivables and loans		(4,230	)	(2,699)
Net decrease (increase) in loans to affiliates and other		4,722		(3,956)
Net decrease in due to/from affiliates		1,360		917
Net cash provided by (used in) investing activities		1,852		(5,738)
Cash Flows from Financing Activities
Net decrease in short-term debt		(394	)	(200)
Net increase in short-term debt to affiliates		702		1,076
Issuance of long-term debt		5,527		7,509
Principal payments on long-term debt		(8,145	)	(2,402)
Dividends paid		(76	)	(255)
Net cash (used in) provided by financing activities		(2,386	)	5,728
Effect of foreign currency exchange rates on Cash and cash equivalents		(3	)	(4)
Net increase (decrease) in Cash and cash equivalents		61		(6)
Cash and cash equivalents at beginning of period		74		86
Cash and cash equivalents at end of period	$	135		$        80

See Notes to Consolidated Financial Statements.

4

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The Company

American Express Credit Corporation (Credco), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a wholly owned subsidiary of American Express Company (American Express). American Express charge cards and American Express credit cards are collectively referred to herein as the cards.

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express^® Green Card, the American Express^® Gold Card, Platinum Card^®, Corporate Card and other American Express cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest-earning revolving loans are primarily funded by subsidiaries of TRS other than Credco.

Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis; however, there can be no assurance that the terms of these arrangements are the same as would be negotiated between independent, unrelated parties.

American Express provides Credco with financial support with respect to maintenance of its minimum overall 1.25 fixed charge coverage ratio, which is achieved by charging appropriate discount rates on the purchases of Card Member receivables and loans Credco makes from, and the interest rates on the loans Credco provides to, TRS and other American Express subsidiaries. Each monthly period, the discount and interest rates are determined to generate income for Credco that is sufficient to maintain its minimum fixed charge coverage ratio. The revenue earned by Credco from purchasing Card Member receivables and loans at a discount is reported as discount revenue on the Consolidated Statements of Income and Retained Earnings.

The accompanying Consolidated Financial Statements should be read in conjunction with the consolidated financial statements in Credco’s Annual Report on Form 10-K for the year ended December 31, 2014 (Form 10-K). If not materially different, certain footnote disclosures included in the Form 10-K have been omitted from this Quarterly Report on Form 10-Q.

The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, 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. 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. These reclassifications did not have a material impact on Credco’s financial position, results of operations or cash flows.

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition. The guidance establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. The guidance, as amended, supersedes most of the current revenue recognition requirements, and is effective January 1, 2018, with early adoption as of January 1, 2017, permitted. Credco continues to evaluate the impact this guidance, including the method of implementation, will have on its financial position, results of operations and cash flows, among other items.

5

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Card Member Receivables and Loans

American Express’ charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively.

The net volume of Card Member receivables purchased during the nine months ended September 30, 2015 and 2014 was approximately $167 billion and $164 billion, respectively. As of September 30, 2015 and December 31, 2014, Credco Receivables Corporation (CRC) owned approximately $4.5 billion and $2.8 billion, respectively, of participation interests in Card Member receivables purchased without recourse from Receivables Financing Corporation VIII LLC (RFC VIII).

Card Member receivables as of September 30, 2015 and December 31, 2014 consisted of:

(Millions)	2015		2014
U.S. Card Services	$	4,532	$      2,755
International Card Services (a)(b)		1,984	1,316
Global Commercial Services (b)		11,815	10,436
Card Member receivables (c)		18,331	14,507
Less: Reserve for losses		109	94
Card Member receivables, net (d)	$	18,222	$    14,413

(a) International is comprised of consumer and small business services.

(b) In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves with a corresponding decline in loans to affiliates.

(c) Net of deferred discount revenue totaling $22 million and $16 million as of September 30, 2015 and December 31, 2014, respectively.

(d) Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

The net volume of Card Member loans purchased during both the nine months ended September 30, 2015 and 2014 was $2.9 billion.

Card Member loans as of September 30, 2015 and December 31, 2014 consisted of:

(Millions)	2015		2014
International Card Services	$	391	$         401
Less: Reserve for losses		4	3
Card Member loans, net (a)	$	387	$         398

(a) Card Member loans modified in a TDR program were immaterial.

6

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Card Member Receivables and Loans 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 receivables and Card Member loans as of September 30, 2015 and December 31, 2014:

2015 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total
Card Member Receivables:
U.S. Card Services	$	4,491	$	18	$	8	$	15	$        4,532
International Card Services		1,956		10		6		12	1,984
Global Commercial Services (a)		(b)		(b)		(b)		84	11,815
Card Member Loans:
International Card Services	$	389	$	1	$	—	$	1	$           391

2014 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total
Card Member Receivables:
U.S. Card Services	$	2,729	$	12	$	5	$	9	$        2,755
International Card Services		1,296		8		4		8	1,316
Global Commercial Services (a)		(b)		(b)		(b)		89	10,436
Card Member Loans:
International Card Services	$	399	$	1	$	—	$	1	$           401

(a) For Card Member 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 collection procedures are initiated 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.

(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.

7

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Credit Quality Indicators for Card Member Receivables and Loans

The following tables present the key credit quality indicators as of or for the nine months ended September 30:

	2015			2014
		Net     Write-off     Rate (a)	30+ Days     Past Due     as a % of     Total		Net     Write-off     Rate (a)	30+ Days Past Due as a % of Total
Card Member Receivables:
U.S. Card Services		0.85%	0.90%		1.13%	1.02%
International Card Services		1.59%	1.41%		1.96%	1.61%
Card Member Loans:
International Card Services		1.03%	0.51%		1.13%	0.56%
	2015			2014
		Net Loss     Ratio as a     % of     Charge     Volume (b)	90+ Days     Past     Billing     as a % of     Receivables		Net Loss     Ratio as a     % of     Charge     Volume (b)	90+ Days Past Billing as a % of Receivables
Card Member Receivables:
Global Commercial Services		0.07%	0.71%		0.07%	0.79%

(a) Represents the amount of Card Member receivables or Card Member loans owned by Credco that are written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods indicated.

(b) Represents the amount of Card Member receivables owned by Credco that are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated.

8

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Reserves for Losses

Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the nine months ended September 30:

(Millions)		2015		2014
Balance, January 1	$	94		$        76
Provisions		116		145
Other credits (a)		32		15
Net write-offs (b)		(124	)	(131)
Other debits (c)		(9	)	(7)
Balance, September 30 (d)	$	109		$        98

(a)    Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $5.8 billion and $3.4 billion for the nine months ended September 30, 2015 and 2014, respectively.

(b)    Net of recoveries of $79 million and $76 million for the nine months ended September 30, 2015 and 2014, respectively.

(c)    Primarily reserve balances applicable to participation interests in Card Member receivables sold to an affiliate and, for 2014, reserves applicable to Card Member receivables sold to the joint ventures that issue American Express cards in certain countries (American Express joint ventures) following the termination of the agreements to purchase Card Member receivables in the third quarter of 2014. Sales of these participation interests and Card Member receivables totaled $1.4 billion and $0.4 billion for the nine months ended September 30, 2015 and 2014, respectively.

(d)    In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves with a corresponding decline in loans to affiliates.

Changes in Card Member Loans Reserve for Losses

The following table presents changes in the Card Member loans reserve for losses for the nine months ended September 30:

(Millions)		2015	2014
Balance, January 1	$	3	$            4
Provisions		4	6
Net write-offs (a)		(3)	(4)
Other debits (b)		—	(5)
Balance, September 30	$	4	$            1
(a)    Net of recoveries of $1 million and $3 million for the nine months ended September 30, 2015 and 2014, respectively. (b)    Primarily reserve balances applicable to sales of Card Member loans to the American Express joint ventures following the termination of the agreements to purchase Card Member loans in the third quarter of 2014. Card Member loans sold totaled nil and $183 million for the nine months ended September 30, 2015 and 2014, respectively.

9

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

4. Derivatives and Hedging Activities

Credco uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rate and foreign exchange rates, 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 Credco’s market risk management. Credco does not transact in derivatives for trading purposes.

In relation to Credco’s credit risk, under the terms of the derivative agreements it has with its various counterparties, Credco is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Based on the assessment of credit risk of Credco’s derivative counterparties as of September 30, 2015 and December 31, 2014, Credco does not have derivative positions that warrant credit valuation adjustments.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of September 30, 2015 and December 31, 2014:

		Other Assets Fair Value						Accrued Interest and Other Liabilities Fair Value
(Millions)		2015			2014			2015			2014
Derivatives designated as hedging instruments:
Interest rate contracts
Fair value hedges	$	177		$	90		$	—		$	4
Foreign exchange contracts
Net investment hedges		164			186			2			—
Total derivatives designated as hedging instruments		341			276			2			4
Derivatives not designated as hedging instruments:
Foreign exchange contracts		73			73			34			49
Total derivatives, gross		414			349			36			53
Less: Cash collateral netting (a)		(174	)		(63	)		—			—
Derivative asset and derivative liability netting (b)		(36	)		(50	)		(36	)		(50	)
Total derivatives, net (c)	$	204		$	236		$	—		$	3

(a) Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. From time to time, Credco also receives non-cash collateral from counterparties in the form of security interests in U.S. Treasury securities, which reduces Credco’s risk exposure, but does not reduce the net exposure on Credco’s Consolidated Balance Sheets. Credco had such non-cash collateral as of December 31, 2014, with a fair value of $40 million, none of which was sold or repledged. Credco did not have any such non-cash collateral as of September 30, 2015. Additionally, Credco posted $133 million and $91 million as of September 30, 2015 and December 31, 2014, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other assets on Credco’s Consolidated Balance Sheets and are not netted against the derivative balances.

(b) Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

(c) Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within Other assets and Accrued interest and other liabilities on Credco’s Consolidated Balance Sheets.

A majority of Credco’s derivative assets and liabilities as of September 30, 2015 and December 31, 2014 are subject to master netting agreements with its derivative counterparties. In addition, Credco has no derivative amounts subject to enforceable master netting arrangements that are not offset on Credco’s Consolidated Balance Sheets.

10

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Fair Value Hedges

Credco is exposed to interest rate risk associated with its fixed-rate long-term debt. Credco uses interest rate swaps to economically convert certain fixed-rate debt obligations to floating-rate obligations at the time of issuance. As of September 30, 2015 and December 31, 2014, Credco hedged $15.6 billion and $14.7 billion, respectively, of its fixed-rate debt to floating-rate debt using interest rate swaps.

The following table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco’s fair value hedges for the three and nine months ended September 30:

Three Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract						Hedged item						Net hedge
		Amount						Amount					ineffectiveness
Derivative relationship	Income Statement Line Item		2015		2014		Income Statement Line Item		2015			2014		2015		2014
Interest rate contracts	Other expenses	$	89	$	(77	)	Other expenses	$	(93	)	$	81	$	(4	)	$    4
Nine Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract						Hedged item						Net hedge
		Amount						Amount					ineffectiveness
Derivative relationship	Income Statement Line Item		2015		2014		Income Statement Line Item		2015			2014		2015		2014
Interest rate contracts	Other expenses	$	91	$	(119	)	Other expenses	$	(91	)	$	128	$	—		$    9

Credco also recognized a net reduction in interest expense on long-term debt of $47 million and $50 million for the three months ended September 30, 2015 and 2014, respectively, and $133 million and $145 million for the nine months ended September 30, 2015 and 2014, respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges.

Net Investment Hedges

The effective portion of the gain or (loss) on net investment hedges, net of taxes, recorded in Accumulated Other Comprehensive Loss as part of the cumulative translation adjustment, was $188 million and $116 million for the three months ended September 30, 2015 and 2014, respectively, and $274 million and $(10) million for the nine months ended September 30, 2015 and 2014, respectively, with any ineffective portion recognized in Other expenses during the period of change. During the three and nine months ended September 30, 2015 and 2014, no ineffectiveness was recognized in either of these two periods.

11

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table summarizes the impact on the Consolidated Statements of Income and retained earnings associated with Credco’s derivatives not designated as hedges:

		Pretax Gains (losses)
		Three Months Ended September 30,				Nine Months Ended September 30,
		Amount				Amount
Description (Millions)	Income Statement Line Item		2015		2014		2015	2014
Foreign exchange contracts	Other expenses	$	42	$	(14)		$        11	$         49
Total		$	42	$	(14)		$        11	$         49

5. Fair Values

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy as Level 2, as of September 30, 2015 and December 31, 2014:

(Millions)		2015	2014
Assets:
Derivatives (a)	$	414	$          349
Total assets		414	349
Liabilities:
Derivatives (a)		36	53
Total liabilities	$	36	$            53

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

12

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table summarizes the estimated fair values of Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of September 30, 2015 and December 31, 2014. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2015 and December 31, 2014, and require management judgment. These figures may not be indicative of future fair values, nor can the fair value of Credco be reliably estimated by aggregating the amounts presented.

	Carrying		Corresponding Fair Value Amount
2015 (Billions)	Value		Total		Level 1			Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	$	19.5	$	19.5	$	0.1	(a)	$	19.4	$      —
Financial assets carried at other than fair value
Card Member loans, net		0.4		0.4		—			—	0.4
Loans to affiliates and others		9.8		9.6		—			6.9	2.7
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value		6.5		6.5		—			6.5	—
Financial liabilities carried at other than fair value
Long-term debt	$	21.3	$	21.3	$	—		$	21.3	$      —
(a)    Reflects cash and due from banks.

	Carrying		Corresponding Fair Value Amount
2014 (Billions)		Value		Total		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	$	16.8	$	16.8	$	16.8	$	—
Financial assets carried at other than fair value
Card Member loans, net		0.4		0.4		—		0.4
Loans to affiliates and others		15.3		15.2		12.3		2.9
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value		6.0		6.0		6.0		—
Financial liabilities carried at other than fair value
Long-term debt	$	24.3	$	24.5	$	24.5	$	—

Nonrecurring Fair Value Measurements

During the nine months ended September 30, 2015 and during the year ended December 31, 2014, Credco did not have any assets that were measured at fair value due to impairment on a nonrecurring basis.

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AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6. Variable Interest Entity

Credco has established a Variable Interest Entity (VIE), American Express Canada Credit Corporation (AECCC), used primarily to lend funds to affiliates, through the issuance of notes in Canada under a medium-term note program. All notes issued under this program are fully guaranteed by Credco. Credco is considered the primary beneficiary of the entity and owns all of the outstanding voting interests and, therefore, consolidates the entity in accordance with accounting guidance governing consolidation of VIEs. Total assets as of September 30, 2015 and December 31, 2014 were $1.8 billion and $2.1 billion, respectively, the majority of which were eliminated in consolidation. Total liabilities as of September 30, 2015 and December 31, 2014 were $1.7 billion and $2.0 billion, respectively. As of September 30, 2015 and December 31, 2014, $845 million and $969 million, respectively, of liabilities were eliminated in consolidation. The assets of the VIE are not used solely to settle the obligations of the VIE. The note holders of the VIE have recourse to Credco.

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AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

7. Changes In Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three and nine months ended September 30, 2015 and 2014 were as follows:

Three Months Ended September 30, 2015 (Millions), net of tax	Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balances as of June 30, 2015	$	(941)	$                  (941)
Net translation loss on investments in foreign operations		(376)	(376)
Net gains related to hedges of investment in foreign operations		188	188
Net change in accumulated other comprehensive loss		(188)	(188)
Balances as of September 30, 2015	$	(1,129)	$               (1,129)
Nine Months Ended September 30, 2015 (Millions), net of tax	Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balances as of December 31, 2014	$	(787)	$                  (787)
Net translation loss on investments in foreign operations		(616)	(616)
Net gains related to hedges of investment in foreign operations		274	274
Net change in accumulated other comprehensive loss		(342)	(342)
Balances as of September 30, 2015	$	(1,129)	$               (1,129)
Three Months Ended September 30, 2014 (Millions), net of tax	Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balances as of June 30, 2014	$	(459)	$                  (459)
Net translation loss on investments in foreign operations		(245)	(245)
Net gains related to hedges of investment in foreign operations		116	116
Net change in accumulated other comprehensive loss		(129)	(129)
Balances as of September 30, 2014	$	(588)	$                  (588)
Nine Months Ended September 30, 2014 (Millions), net of tax	Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balances as of December 31, 2013	$	(478)	$                  (478)
Net translation loss on investments in foreign operations		(100)	(100)
Net losses related to hedges of investment in foreign operations		(10)	(10)
Net change in accumulated other comprehensive loss		(110)	(110)
Balances as of September 30, 2014	$	(588)	$                  (588)

No amounts were reclassified out of Accumulated Other Comprehensive Loss into the Consolidated Statements of Income and Retained Earnings for the three and nine months ended September 30, 2015 and 2014.

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AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

8. Income Taxes

The results of operations of Credco are included in the consolidated U.S. federal income tax return of American Express. Under an agreement with American Express, provision for income taxes is recognized on a separate company basis. If benefits for net operating losses, future tax deductions and foreign tax credits cannot be recognized on a separate company basis, such benefits are then recognized based upon a share, derived by formula, of those deductions and credits that are recognizable on an American Express consolidated reporting basis.

American Express is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which American Express has significant business operations. The tax years under examination and open for examination vary by jurisdiction. The IRS has completed its field examination of American Express’ federal tax returns for years through 2007; however, refund claims for those years continue to be reviewed by the IRS. In addition, American Express is currently under examination by the IRS for the years 2008 through 2011.

Credco believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $269 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 $269 million of unrecognized tax benefits, approximately $267 million relates to amounts that, if recognized, would be recorded to shareholder’s equity and would not impact Credco’s results of operations or the effective tax rate.

The effective tax rates were 13.3 percent and 15.2 percent for the three and nine months ended September 30, 2015, respectively, and (1.2) percent and (6) percent for the three and nine months ended September 30, 2014, respectively. The tax rate in each of the periods reflects the geographic mix of expenses in the United States attracting a 35 percent statutory benefit and foreign earnings taxed at lower rates, which are indefinitely reinvested. In addition, the effective tax rates for each of the periods reflect the impact of certain prior years’ tax items, including those noted below.

The results for the nine months ended September 30, 2015 reflect out-of-period corrections that increased tax expense by $11 million. The corrections relate to tax calculations of foreign exchange gains/losses in one jurisdiction reflected in the 2014 results. None of the current or prior period financial statements were materially misstated from these corrections.

The tax rate in each of the periods reflects the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States. Credco’s provision for income taxes for interim financial periods is not based on an estimated annual effective rate due to volatility in certain components of revenues and expenses that prevents Credco from projecting a reliable estimate of full year pretax income. A discrete calculation of the provision for income taxes is calculated for each interim period.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

American Express Credit Corporation (Credco), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a wholly owned subsidiary of American Express Company (American Express). Both American Express and TRS are bank holding companies.

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express^® Green Card, the American Express^® Gold Card, Platinum Card^®, Corporate Card and other American Express cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest-earning and revolving loans are primarily funded by subsidiaries of TRS other than Credco. American Express charge cards and American Express credit cards are collectively referred to herein as the cards.

Certain of the statements in this Form 10-Q report are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the “Cautionary Note Regarding Forward-Looking Statements” section.

Current Business Environment/Outlook

Management’s discussion of the results of Credco is in the context of the following wider business environment for American Express.

American Express’ third quarter performance was in line with its 2015 financial outlook, reflecting the headwinds that it has been managing throughout 2015, including a challenging economic, competitive and regulatory environment. Results for the quarter were significantly affected by higher spending on growth initiatives, as well as the continued impact of certain previously renewed co-brand partnerships and the stronger U.S. dollar.

While American Express’ business is diversified by product and geography, including a range of consumer and commercial card offerings, a large international business and GNS partners around the world, all of which American Express believes provide a range of growth opportunities, it will continue to face a number of challenges throughout the remainder of 2015 and 2016.

Global economic growth remains uneven. In addition, American Express’ results continued to be adversely impacted by the strengthening U.S. dollar, and it expects foreign exchange will continue to have an adverse impact for the remainder of 2015, and could impact 2016 as well. American Express’ results could also be adversely affected by increases in interest rates and U.S. income tax law changes.

Competition is extremely intense across the payments industry, including within the co-brand space, which has generally led to increased costs in American Express’ renewed co-brand partnerships.

As previously disclosed, a trial court ruled in favor of the U.S. Department of Justice (DOJ) in its antitrust lawsuit against American Express. Following the decision, on April 30, 2015, the trial court issued an injunction requiring American Express to change the provisions in its agreements with merchants accepting American Express cards in the U.S. that historically prohibited merchants from engaging in various actions to encourage Card Members to use other credit or charge card products or networks. The injunction became effective on July 20, 2015. American Express is vigorously pursuing an appeal of the decision and judgment, and is vigorously defending similar antitrust claims initiated by merchants in other court and arbitration proceedings. See Part II, Item 1A “Risk Factors” in Credco’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 for additional information on the potential impacts of the trial court’s decision, the subsequent injunction and the related merchant litigation on American Express’ business.

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Results of Operations for the Nine Months Ended September 30, 2015 and 2014

Net income depends largely on the volume of Card Member receivables and loans purchased, the discount factor used to determine purchase price, interest earned, interest expense, collectability of Card Member receivables and loans purchased and income taxes.

Credco’s consolidated net income decreased 41 percent or $108 million for the nine months ended September 30, 2015 as compared to the same period in the prior year. The year over year decrease is primarily due to lower discount revenue earned from purchased Card Member receivables and loans, lower interest income from affiliates and other, lower benefit in other, net expenses and higher income tax expense, partially offset by lower interest expense and lower provision for losses. The following table summarizes the changes for the nine months ended September 30:

Table 1: Changes Attributable to the Increase (Decrease) in Key Revenue and Expense Accounts

(Millions)	2015		2014
Discount revenue earned from purchased Card Member receivables and loans:
Volume of receivables and loans purchased	$	5	$	9
Discount rates		(32)		(56	)
Total	$	(27)	$	(47	)
Interest income from affiliates and other:
Average loans to affiliates and other	$	2	$	52
Interest rates		(105)		(73	)
Total	$	(103)	$	(21	)
Finance revenue:
Average Card Member loans outstanding	$	(6)	$	1
Interest rates		(8)		1
Total	$	(14)	$	2
Interest expense:
Average debt outstanding	$	(1)	$	30
Interest rates		(106)		(100	)
Total	$	(107)	$	(70	)
Interest expense to affiliates:
Interest rates		2		(1	)
Total	$	2	$	(1	)

Discount revenue earned from purchased Card Member receivables and loans

Discount revenue decreased 7 percent or $27 million to $359 million for the nine months ended September 30, 2015, as compared to the same period in the prior year, primarily driven by a 2 basis points decrease in the discount rate charged on Card Member receivables and loans, partially offset by a 2 percent or $3 billion increase in the net volume of purchased receivables and loans, which was $170 billion for the nine months ended September 30, 2015.

Interest income from affiliates and other

Interest income from affiliates and other decreased 35 percent or $103 million to $194 million for the nine months ended September 30, 2015, as compared to the same period in the prior year, primarily driven by a decrease of 102 basis points in the annualized effective interest rate charged to affiliates and other to 1.88 percent.

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Finance revenue

Finance revenue decreased 39 percent or $14 million to $22 million for the nine months ended September 30, 2015, as compared to the same period in the prior year, primarily driven by a decrease in average Card Member loan balance outstanding for the nine months ended September 30, 2015 to $390 million as compared to $474 million for the same period in the prior year.

Provisions for losses

Provisions for losses decreased 21 percent or $31 million to $120 million for the nine months ended September 30, 2015, as compared to the same period in the prior year, primarily driven by a reserve release versus a reserve build in the prior year.

Interest expense

Interest expense decreased 27 percent or $107 million to $283 million for the nine months ended September 30, 2015, as compared to the same period in the prior year, primarily driven by a decrease in annualized effective interest rates on average debt outstanding by 59 basis points to 1.57 percent.

Interest expense to affiliates

Interest expense to affiliates increased 40 percent or $2 million to $7 million for the nine months ended September 30, 2015, as compared to the same period in the prior year. This change was primarily driven by an increase in the annualized effective interest rate on average debt to affiliates outstanding by 5 basis points to 19 basis points for the nine months ended September 30, 2015 as compared to the same period in the prior year, while average debt outstanding to affiliates remained relatively flat year over year.

Other, net

The benefit recorded in Other, net decreased $57 million to a benefit of $19 million for the nine months ended September 30, 2015, from a benefit of $76 million for the same period in the prior year, primarily driven by a $45 million decrease in the forward points gain generated by foreign exchange forward contracts and a decrease in the fair value hedge ineffectiveness gain by $9 million. Credco uses foreign exchange forward contracts to manage foreign exchange risk for certain cross-currency funding activities. At inception, the difference between the spot rate and the contractual forward rate, referred to as the forward points, generates gains (or losses) as a component of the derivative contract’s valuation.

Income taxes

The effective tax rates for the nine months ended September 30, 2015 and 2014 were 15.2 percent and (6) percent, respectively. The results for the nine months ended September 30, 2015 reflect out-of-period corrections that increased tax expense by $11 million. The corrections relate to tax calculations of foreign exchange gains/losses in one jurisdiction reflected in the 2014 results. None of the current or prior period financial statements were materially misstated from these corrections.

The tax rates in each of the periods primarily reflect the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States as well as the impact of prior years’ tax items.

Card Member Receivables and Card Member Loans

As of September 30, 2015 and December 31, 2014, Credco owned $18.3 billion and $14.5 billion, respectively, of gross Card Member receivables. Card Member receivables represent amounts due on American Express charge card products and are recorded at the time they are purchased from the seller. Included in Card Member receivables are Credco Receivables Corporation’s (CRC) purchases of the participation interests from American Express Receivable Financing Corporation VIII (RFC VIII) in conjunction with TRS’ securitization program. As of September 30, 2015 and December 31, 2014, CRC owned approximately $4.5 billion and $2.8 billion, respectively, of such participation interests.

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On March 19, 2015, Credco implemented a restructuring of the financing arrangements of American Express’ Australian and New Zealand card businesses to enhance funding flexibility and effectiveness. The former financing arrangement, through collateralized loans to the affiliate, has now been replaced by an arrangement where Credco purchases the Charge Card receivables from the affiliate, and continues to provide collateralized loans to fund the lending portfolios.

As of September 30, 2015 and December 31, 2014, Credco owned gross Card Member loans totaling $391 million and $401 million respectively. These loans represent revolving amounts due on American Express lending card products.

The following table summarizes selected information related to the Card Member receivables portfolio as of or for the nine months ended September 30.

Table 2: Selected Information Related to Card Member Receivables

(Millions, except percentages and where indicated)		2015		2014
Total gross Card Member receivables (a)(b)	$	18,331		$      17,146
Loss reserves – Card Member receivables (a)(b)	$	109		$             98
Loss reserves as a % of receivables		0.59	%	0.57%
Average life of Card Member receivables (# in days) (c)		29		29
U.S. Card Services gross Card Member receivables (a)	$	4,532		$        4,822
30+ days past due as a % of total		0.90	%	1.02%
Average receivables	$	4,064		$        4,732
Write-offs, net of recoveries	$	26		$             40
Net write-off rate (d)		0.85	%	1.13%
International Card Services gross Card Member receivables (a)(b)	$	1,984		$        1,244
30+ days past due as a % of total		1.41	%	1.61%
Average receivables	$	1,757		$        1,225
Write-offs, net of recoveries	$	21		$             18
Net write-off rate (d)		1.59	%	1.96%
Global Commercial Services gross Card Member receivables (a)(b)	$	11,815		$      11,080
90+ days past billing as a % of total		0.71	%	0.79%
Write-offs, net of recoveries	$	77		$             73
Net loss ratio (e)		0.07	%	0.07%

(a) Refer to Notes 2 and 3 to the Consolidated Financial Statements for further discussion.

(b) In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves with a corresponding decline in loans to affiliates.

(c) Represents the average life of Card Member receivables owned by Credco, based upon the ratio of the average amount of both billed and unbilled receivables owned by Credco at the end of each month, during the period indicated, to the volume of Card Member receivables purchased by Credco.

(d) Represents the amount of Card Member receivables owned by Credco that are written off, net of recoveries, expressed as a percentage of the average Card Member receivables in each of the periods indicated.

(e) Represents the amount of Card Member receivables owned by Credco that are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated.

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Loans to Affiliates and Other

Credco’s loans to affiliates and other represent floating-rate interest-bearing borrowings by other wholly owned subsidiaries of TRS and the American Express joint ventures. The components of loans to affiliates and other as of September 30, 2015 and December 31, 2014 were as follows:

Table 3: Loans to Affiliates and Other

(Millions)	2015		2014
American Express Services Europe Limited	$	3,033	$          3,075
American Express Company		2,666	5,937
Amex Bank of Canada		2,127	2,581
American Express Australia Limited (a)		1,011	2,693
American Express Company (Mexico) S.A. de C.V.		445	495
American Express Bank (Mexico) S.A.		343	382
American Express International, Inc.		97	100
American Express International (NZ) Inc. (a)		90	—
Amex (Saudi Arabia) Limited		6	28
Alpha Card S.C.R.L./C.V.B.A.		—	12
Total (b)	$	9,818	$          15,303

(a) In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves with a corresponding decline in loans to affiliates.

(b) As of September 30, 2015, approximately $3.5 billion of total loans to affiliates and other were collateralized by the underlying Card Member receivables and Card Member loans transferred with recourse and the remaining $6.3 billion were uncollateralized loans primarily to affiliated banks, American Express Company and joint ventures that issue American Express cards in certain countries. As of December 31, 2014, approximately $5.2 billion of total loans to affiliates and other were collateralized by the underlying Card Member receivables transferred with recourse and the remaining $10.1 billion were uncollateralized loans primarily to affiliated banks, American Express Company and American Express joint ventures.

Due from/to Affiliates

As of September 30, 2015 and December 31, 2014, amounts due from affiliates were $1.0 billion and $2.2 billion, respectively. As of September 30, 2015 and December 31, 2014, amounts due to affiliates were $1.0 billion and $0.9 billion, respectively. These amounts relate primarily to timing differences from the purchase of Card Member receivables, net of remittances from TRS, as well as from other operating activities.

Short-term Debt to Affiliates

Credco does not expect any changes to its short-term funding strategies with affiliates. Components of short-term debt to affiliates as of September 30, 2015 and December 31, 2014 were as follows:

Table 4: Short-term Debt to Affiliates

(Millions)	2015		2014
AE Exposure Management Ltd.	$	3,011	$        2,851
American Express Europe LLC		1,408	831
American Express Swiss Holdings		390	403
American Express Holdings (Netherlands) C.V.		189	188
Amex Funding Management (Europe) Limited		35	61
Total	$	5,033	$        4,334

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Service Fees to Affiliates

Certain affiliates do not explicitly charge Credco a servicing fee for the servicing of receivables purchased. Instead Credco receives a lower discount rate on the receivables sold to Credco than would be the case if servicing fees were charged. If a servicing fee had been charged by these affiliates from which Credco purchases receivables, fees to affiliates for servicing receivables would have been approximately $181 million and $165 million for the nine months ended September 30, 2015 and 2014, respectively. Correspondingly, discount revenue would have increased by approximately the same amounts in these periods.

Consolidated Capital Resources and Liquidity

Credco’s balance sheet management objectives are to maintain:

• A broad, deep and diverse set of funding sources to finance its assets and meet operating requirements; and

• Liquidity programs that enable Credco to continuously meet expected future financing obligations and business requirements for at least a 12-month period, even in the event it is unable to continue to raise new funds under its traditional funding programs during a substantial weakening in economic conditions.

Funding Strategy

American Express has in place an enterprise-wide funding policy. The principal funding objective is to maintain broad and well-diversified funding sources to allow American Express, including Credco, to meet its maturing obligations, cost-effectively finance current and future asset growth in its global businesses as well as to maintain a strong liquidity profile. The diversity of funding sources by type of instrument, by maturity and by investor base, among other factors, provides additional insulation from the impact of disruptions in any one type of instrument, maturity or investor. The mix of Credco’s funding in any period will seek to achieve cost efficiency consistent with both maintaining diversified sources and achieving its liquidity objectives. Credco’s funding strategy and activities are integrated into American Express’ asset-liability management activities.

Credco has historically relied on the debt capital markets to fulfill a substantial amount of its funding needs. It has a variety of funding sources available to access the debt capital markets, including senior unsecured debentures and commercial paper. One of the principal tenets of Credco’s funding strategy is to issue debt with a wide range of maturities to distribute its refinancing requirements across future periods. Credco continues to assess its funding needs and investor demand and could change the mix of its existing sources as well as add new sources to its funding mix. Credco’s funding plan is subject to various risks and uncertainties, such as the disruption of financial markets or reductions in market capacity and demand for securities offered by Credco as well as any regulatory changes or changes in its long-term or short-term credit ratings. Many of these risks and uncertainties are beyond Credco’s control.

Credco’s funding strategy is designed, among other things, to maintain appropriate and stable unsecured debt ratings from the major credit rating agencies: Dominion Bond Rating Services (DBRS), Fitch Ratings (Fitch), Moody’s Investor Services (Moody’s) and Standard & Poor’s (S&P). Such ratings help support Credco’s access to cost-effective unsecured funding as part of its overall funding strategy.

Table 5: Unsecured Debt Ratings

Credit Agency	Short-Term Ratings	Long-Term Ratings	Outlook
DBRS	R-1 (middle)	A (high)	Stable
Fitch	F1	A+	Stable
Moody’s	Prime-1	A2	Stable
S&P	A-2	A-	Stable

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Downgrades in the ratings of Credco’s unsecured debt could result in higher funding costs, as well as higher fees related to borrowings under its unused lines of credit. Declines in credit ratings could also reduce Credco’s borrowing capacity in the unsecured term debt and commercial paper markets. The overall level of the funding provided by Credco to other American Express affiliates is impacted by a variety of factors, among them Credco’s ratings. To the extent that Credco is subject to a higher cost of funds, whether due to an adverse ratings action or otherwise, the affiliates could continue to use, or could increase their use of, alternative sources of funding for their receivables that offer better pricing.

Short-term Funding Programs

Credco’s issuance and sale of commercial paper is primarily utilized for working capital needs. The amount of short-term borrowings issued in the future will depend on Credco’s funding strategy, its needs and market conditions. As of September 30, 2015 and December 31, 2014, Credco had $0.4 billion and $0.8 billion, respectively, of commercial paper outstanding. The average commercial paper outstanding was $0.7 billion and $0.2 billion for the nine months ended September 30, 2015 and the year ended December 31, 2014, respectively.

Long-term Debt Programs

Long-term debt is raised through the offering of debt securities both in and outside the United States. Long-term debt is generally defined as any debt with an original maturity greater than 12 months. Credco had the following long-term debt outstanding as of September 30, 2015 and December 31, 2014.

Table 6: Long-term Debt Outstanding

(Billions)		2015	2014
Long-term debt outstanding	$	21.3	$        24.3
Average long-term debt (a)	$	23.3	$        24.2

(a) Average long-term debt outstanding during the nine and twelve months ended September 30, 2015 and December 31, 2014, respectively.

During the third quarter of 2015, Credco issued $3.4 billion of senior unsecured notes consisting of:

• $2.0 billion of senior unsecured notes with a maturity of five years consisting of $1.5 billion of fixed-rate senior notes with a coupon of 2.6 percent and $500 million of floating-rate senior notes at a rate of 3-month LIBOR plus 105 basis points;

• $1.4 billion of senior unsecured notes with a maturity of three years consisting of $900 million of fixed-rate senior notes with a coupon of 1.8 percent and $500 million of floating-rate senior notes at a rate of 3-month LIBOR plus 61 basis points.

Credco has the ability to issue debt securities under shelf registrations filed with the Securities and Exchange Commission (SEC). The latest shelf registration statement filed with the SEC is for an unspecified amount of debt securities. As of September 30, 2015 and December 31, 2014, Credco had $20.3 billion and $19.6 billion, respectively, of debt securities outstanding, issued under the SEC registration statement.

Credco has established a program for the issuance of debt instruments outside the United States, which is listed on the Luxembourg Stock Exchange. The prospectus for this program expired in February 2013. Credco expects to renew the prospectus as management deems appropriate. As of both September 30, 2015 and December 31, 2014, no debt instruments were outstanding under this program.

Credco has also established a program in Australia for the issuance of debt securities of up to approximately $4.2 billion (AUD $6.0 billion). During the nine months ended September 30, 2015, no notes were issued under this program. As of September 30, 2015 and December 31, 2014, the entire amount of approximately $4.2 billion and $4.9 billion, respectively, of notes were available for issuance under this program and the outstanding notes were nil as of such dates.

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Credco has also established a medium-term note program in Canada providing for the issuance of notes by American Express Canada Credit Corporation (AECCC), an indirect wholly owned subsidiary of Credco. The prospectus for this program expired in September 2014. Credco expects to renew the prospectus as management deems appropriate. All notes issued by AECCC under this program are guaranteed by Credco. For the nine months ended September 30, 2015, no notes were issued under this program. As of September 30, 2015 and December 31, 2014, AECCC had $0.9 billion and $1.0 billion, respectively, of medium-term notes outstanding under this program. The financial results of AECCC are included in the consolidated financial results of Credco.

The covenants of debt instruments issued by Credco impose the requirement that Credco maintain a minimum consolidated net worth of $50 million, which limits the amount of dividends Credco can pay to its parent. During the nine months ended September 30, 2015 and 2014, Credco paid $76 million and $255 million, respectively, of cash dividends to TRS. When considering the amount of dividends it pays, Credco takes into account the amount of capital required to maintain capital strength, support business growth, and meet the expectations of debt investors. To the extent excess capital is available, it may be distributed to TRS, Credco’s parent company, via dividends. There are no significant restrictions on the ability of Credco to obtain funds from its subsidiaries by dividend or loan. Additionally, there are no limitations on the amount of debt that can be issued by Credco, provided it maintains the minimum required fixed charge coverage ratio of 1.25. As of September 30, 2015, Credco was in compliance with all restrictive covenants contained in its debt agreements.

Liquidity Management

General principles and the overall framework for managing liquidity risk across American Express on an enterprise-wide basis are set out in American Express’ Liquidity Risk Policy. The liquidity objective is to maintain access to a diverse set of on-and off-balance sheet liquidity sources. American Express and its subsidiaries, including Credco, maintain liquidity sources in amounts sufficient to meet business requirements and expected future financial obligations for a period of at least twelve months, in the event they are unable to raise new funds under their regular funding programs during a substantial weakening in economic conditions.

Credco manages this objective by regularly accessing capital through its various funding programs, as well as by maintaining a variety of contingent sources of cash and financing, such as access to securitizations of Card Member receivables through sales of receivables to TRS for securitization by RFC VIII and the American Express Issuance Trust II, as well as committed bank facilities.

American Express, including Credco, incurs and accepts liquidity risk arising in the normal course of its activities. This liquidity risk exposure can arise from a variety of sources, and thus the enterprise-wide liquidity management strategy includes a variety of parameters, assessments and guidelines, including, but not limited to:

• Maintaining a diversified set of funding sources;

• Maintaining unencumbered liquid assets and off-balance sheet liquidity sources available to meet obligations;

• Projecting cash inflows and outflows from a variety of sources and under a variety of scenarios; and

• Incorporating tradeoffs between the risk of insufficient liquidity and profitability into its capital adequacy framework.

As of September 30, 2015, Credco had cash and cash equivalents of approximately $135 million. In addition to its actual holdings of cash and cash equivalents, Credco maintains access to additional liquidity, in the form of cash and cash equivalents held by certain affiliates, through intercompany loan agreements.

24

Committed Bank Credit Facilities

Credco maintained a U.S. dollar denominated committed syndicated bank credit facility as of September 30, 2015 of $3.0 billion, which expires on April 23, 2017. On September 25, 2015, Credco repaid all outstanding loans on its Australian dollar credit facility and terminated the facility in accordance with its right to terminate prior to the termination date.

The availability of the credit lines is subject to Credco’s compliance with certain financial covenants that require maintenance of a 1.25 ratio of earnings to fixed charges. The ratio of earnings to fixed charges for Credco was 1.63 for the nine months ended September 30, 2015. The ratio of earnings to combined fixed charges and preferred stock dividends for American Express for the nine months ended September 30, 2015 was 5.97.

The committed bank credit facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are they dependent on Credco’s credit rating.

25

Cautionary Note Regarding Forward-Looking Statements

Various statements have been made in this Quarterly Report on this Third Quarter 2015 Form 10-Q that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may also be made in Credco’s other reports filed with or furnished to the Securities and Exchange Commission (SEC) and in other documents. In addition, from time to time, Credco, through its management, may make oral forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such statements. The words “believe,” “expect,” “estimate,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely” and similar expressions are intended to identify forward-looking statements. Credco cautions you that the risk factors described above and in Credco’s Annual Report on Form 10-K for the year ended December 31, 2014 (the 2014 Form 10-K), Credco’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (the Second Quarter Form 10-Q) and other factors described below are not exclusive. There may also be other risks that Credco is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Credco undertakes no obligation to update or revise any forward-looking statements.

Factors that could cause actual results to differ materially from Credco’s forward-looking statements include, but are not limited to:

• credit trends, which will depend in part on the economic environment, including, among other things, the housing market and the rates of bankruptcies, which can affect spending on card products and debt payments by individual and corporate customers;

• the effectiveness of Credco’s risk management policies and procedures, including Credco’s ability to accurately estimate the provisions for losses in Credco’s outstanding portfolio of Card Member receivables and loans, and operational risk;

• fluctuations in foreign currency exchange rates;

• negative changes in Credco’s credit ratings, which could result in decreased liquidity and higher borrowing costs;

• changes in laws or government regulations affecting American Express’ business, including the potential impact of regulations adopted by bank regulators relating to certain credit and charge card practices and other payment systems regulations;

• the effect of fluctuating interest rates, which could affect Credco’s borrowing costs;

• the impact on American Express’ business resulting from changes in global economic and business conditions, including increased competition in the payments industry, particularly in co-brand partnerships;

• the impact on American Express’ business that could result from litigation such as class actions or proceedings brought by governmental and regulatory agencies (including the lawsuit filed against American Express by the U.S. Department of Justice and certain states’ attorneys general);

• Credco’s ability to satisfy its liquidity needs and execute on its funding plans, which will depend on, among other things, Credco’s future business growth, the impact of global economic, political and other events on market capacity, Credco’s credit ratings, demand for securities offered by Credco, performance by Credco’s counterparties under its bank credit facilities and other lending facilities, and regulatory changes; and

• the potential failure of the U.S. Congress to renew legislation regarding the active financing exception to Subpart F of the Internal Revenue Code, which could increase Credco’s effective tax rate and have an adverse impact on net income.

26

ITEM 4. CONTROLS AND PROCEDURES

Credco’s management, with the participation of Credco’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Credco’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, Credco’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, Credco’s disclosure controls and procedures are effective and designed to ensure that the information required to be disclosed in Credco’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods specified in the applicable rules and forms, and that it is accumulated and communicated to Credco’s management, including Credco’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There have not been any changes in Credco’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during Credco’s fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, Credco’s internal control over financial reporting.

27

PART II. OTHER INFORMATION

ITEM 1A. RISK FACTORS

For a discussion of Credco’s risk factors, see Part I, Item 1A. “Risk Factors” of Credco’s 2014 Form 10-K and Part II, Item 1A. “Risk Factors” of Credco’s Second Quarter Form 10-Q. There are no material changes from the risk factors set forth in the 2014 Form 10-K, as supplemented and updated in the Second Quarter Form 10-Q. However, the risks and uncertainties that Credco faces are not limited to those set forth in the 2014 Form 10-K and Second Quarter Form 10-Q. Additional risks and uncertainties not presently known to Credco or that it currently believes to be immaterial may also adversely affect Credco’s business.

ITEM 5. OTHER INFORMATION

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Exchange Act, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure is generally required even where the activities, transactions or dealings were conducted outside the United States by non-U.S. affiliates in compliance with applicable law, and whether or not the activities are sanctionable under U.S. law.

During the third quarter of 2015, American Express Global Business Travel booked one hotel reservation at Homa Hotel Tehran and one hotel reservation at Esteghlal East Wing Hotel. In addition, certain third-party service providers obtained approximately four visas from Iranian embassies and consulates around the world during the third quarter of 2015 in connection with certain travel arrangements on behalf of American Express Global Business Travel clients. American Express Global Business Travel had negligible gross revenues and net profits attributable to these transactions. American Express Global Business Travel believes these transactions were permissible pursuant to certain exemptions from U.S. sanctions for travel-related transactions under the International Emergency Economic Powers Act, as amended. American Express Global Business Travel has informed American Express that it intends to continue to engage in these activities on a limited basis so long as such activities are permitted under U.S. law.

A travel company that may be considered an affiliate of Credco, American Express Nippon Travel Agency, Inc. (Nippon Travel Agency), has informed American Express that during the third quarter of 2015 it obtained 39 visas from the Iranian embassy in Japan in connection with certain travel arrangements on behalf of clients. Nippon Travel Agency had negligible gross revenues and net profits attributable to these transactions. Nippon Travel Agency has informed American Express that it intends to continue to engage in this activity so long as such activity is permitted under U.S. law.

ITEM 6. EXHIBITS

The exhibits required to be filed with this report are listed on page E-1 hereof, under “Exhibit Index,” which is incorporated herein by reference.

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AMERICAN EXPRESS CREDIT CORPORATION

(Registrant)

Date: November 6, 2015	By	/s/ David L. Yowan
		David L. Yowan
		Chief Executive Officer
Date: November 6, 2015	By	/s/ David L. Fabricant
		David L. Fabricant
		Vice President and Chief Accounting Officer

29

EXHIBIT INDEX

Pursuant to Item 601 of Regulation S-K

Exhibit No.	Description	How Filed
12.1	Computation in Support of Ratio of Earnings to Fixed Charges of American Express Credit Corporation.	Electronically filed herewith.
12.2	Computation in Support of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends of American Express Company.	Electronically filed herewith.
31.1	Certification of David L. Yowan, Chief Executive Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.	Electronically filed herewith.
31.2	Certification of Anderson Y. Lee, Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.	Electronically filed herewith.
32.1	Certification of David L. Yowan, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Electronically filed herewith.
32.2	Certification of Anderson Y. Lee, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Electronically filed herewith.
101.INS	XBRL Instance Document	Electronically filed herewith.
101.SCH	XBRL Taxonomy Extension Schema Document	Electronically filed herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	Electronically filed herewith.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document	Electronically filed herewith.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document	Electronically filed herewith.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	Electronically filed herewith.

E-1

EX-12.1

EXHIBIT 12.1

AMERICAN EXPRESS CREDIT CORPORATION

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

	Nine Months Ended		Years Ended December 31,
(Dollars in millions)		September 30, 2015		2014			2013			2012			2011		2010
Earnings:
Net income	$	156	$	353		$	446		$	339		$	397		$    348
Income tax provision (benefit)		28		(35	)		(96	)		(51	)		(48	)	(24)
Interest expense including interest expense to affiliates		290		502			597			749			707		598
Total earnings	$	474	$	820		$	947		$	1,037		$	1,056		$    922
Fixed charges — Interest expense including interest expense to affiliates	$	290	$	502		$	597		$	749		$	707		$    598
Ratio of earnings to fixed charges		1.63		1.63			1.59			1.38			1.49		1.54

Interest expense does not include interest on liabilities recorded under GAAP governing accounting for uncertainty in income taxes as Credco’s policy is to classify such interest in income tax provision in the Consolidated Statements of Income and Retained Earnings.

EX-12.2

EXHIBIT 12.2

AMERICAN EXPRESS COMPANY

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND

PREFERRED STOCK DIVIDENDS

	Nine Months Ended		Years Ended December 31,
(Dollars in millions)		September 30, 2015		2014		2013		2012		2011	2010
Earnings:
Pretax income from continuing operations	$	6,484	$	8,991	$	7,888	$	6,451	$	6,956	$ 5,964
Interest expense (a)		1,223		1,707		1,958		2,226		2,320	2,423
Other adjustments (b)		102		402		133		117		124	126
Total earnings	$	7,809	$	11,100	$	9,979	$	8,794	$	9,400	$ 8,513
Fixed charges:
Interest expense	$	1,223	$	1,707	$	1,958	$	2,226	$	2,320	$ 2,423
Other adjustments (c)		44		79		93		102		94	85
Total fixed charges	$	1,267	$	1,786	$	2,051	$	2,328	$	2,414	$ 2,508
Preferred stock dividends	$	42		—		—		—		—	—
Total fixed charges and preferred stock dividends	$	1,309	$	1,786	$	2,051	$	2,328	$	2,414	$ 2,508
Ratio of earnings to combined fixed charges and preferred stock dividends		5.97		6.22		4.87		3.78		3.89	3.39

(a) Included in interest expense is interest expense related to the Card Member lending activities, international banking operations, and charge card and other activities in the Consolidated Statements of Income. Interest expense does not include interest on liabilities recorded under GAAP governing accounting for uncertainty in income taxes. American Express’ policy is to classify such interest in income tax provision in the Consolidated Statements of Income.

(b) For purposes of the “earnings” computation, “other adjustments” include adding the amortization of capitalized interest, the net loss of affiliates accounted for under the equity method whose debt is not guaranteed by American Express, the noncontrolling interest in the earnings of majority-owned subsidiaries with fixed charges, and the interest component of rental expense, and subtracting undistributed net income of affiliates accounted for under the equity method.

(c) For purposes of the “fixed charges” computation, “other adjustments” include capitalized interest costs and the interest component of rental expense.

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David L. Yowan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Express Credit Corporation;

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.

Date: November 6, 2015	/s/ David L. Yowan
	David L. Yowan
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Anderson Y. Lee, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Express Credit Corporation;

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.

Date: November 6, 2015	/s/ Anderson Y. Lee
	Anderson Y. Lee
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of American Express Credit Corporation (the “Company”) for the quarterly period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), David L. Yowan, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

/s/ David L. Yowan
Name:	David L. Yowan
Title:	Chief Executive Officer
Date:	November 6, 2015

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of American Express Credit Corporation (the “Company”) for the quarterly period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Anderson Y. Lee, as Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

/s/ Anderson Y. Lee
Name:	Anderson Y. Lee
Title:	Chief Financial Officer
Date:	November 6, 2015

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.2 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Changes in Accumulated Other Comprehensive (Loss) Income (Details Textuals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Loss Income (Textuals) [Abstract]
Amount of gain loss reclassified from accumulated other comprehensive income to income	$ 0	$ 0	$ 0	$ 0

XML

Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Derivatives And Hedging Activities Textuals [Abstract]
Net reduction in interest expense	$ 47	$ 50	$ 133	$ 145
Derivative [Line Items]
Ineffectiveness reclassified from AOCI into income	0	0	0	0
Margin on interest rate swap not netted	133		133		$ 91
Fair Value Hedging [Member]
Derivative [Line Items]
Notional amount of long-term debt	15,600		15,600		14,700
Net Investment Hedging [Member]
Derivative [Line Items]
Effection portion of gain (loss) on hedges	188	$ 116	274	$ (10)
Credit Valuation Adjustment [Member]
Derivative [Line Items]
Notional amount of long-term debt	0		0		0
None Sold or Repledged [Member]
Offsetting Assets [Line Items]
Securities received as collateral	0		0		40
Individually Significant Counterparties [Member]
Offsetting Assets [Line Items]
Total derivatives assets,net	$ 0		$ 0		$ 0

XML

Card Member Receivables and Loans (Details 3)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
U.S. Card Services [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Receivables and Loans
Net Write-off Rate	0.85%	1.13%
30 Days Past Due as a % of Total	0.90%	1.02%
International Card Services [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Receivables and Loans
Net Write-off Rate	1.59%	1.96%
30 Days Past Due as a % of Total	1.41%	1.61%
International Card Services [Member] | Card Member Loans [Member]
Credit Quality Indicator for Receivables and Loans
Net Write-off Rate	1.03%	1.13%
30 Days Past Due as a % of Total	0.51%	0.56%
Global Commercial Services [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Receivables and Loans
Net Loss Ratio as a % of Charge Volume	0.07%	0.07%
90 Days Past Billing as a % of Receivables	0.71%	0.79%

XML

Variable Interest Entity (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Total assets	$ 29,988	$ 32,840
Total liabilities	27,861	30,451
Variable Interest Entity, Primary Beneficiary [Member] | American Express Canada Credit Corporation Member [Member]
Variable Interest Entity [Line Items]
Total assets	1,800	2,100
Total liabilities	1,700	2,000
Liabilities eliminated in consolidation	$ 845	$ 969

XML

Card Member Receivables and Loans

9 Months Ended

Sep. 30, 2015

Card Member Receivables and Loans [Abstract]

Card Member Receivables and Loans

2. Card Member Receivables and Loans

American Express’ charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively.

The net volume of Card Member receivables purchased during the nine months endedSeptember 30, 2015 and 2014 wasapproximately $167billion and $164 billion, respectively. As of September 30, 2015 and December 31, 2014, Credco Receivables Corporation (CRC) owned approximately $4.5billion and $2.8 billion, respectively, of participation interests in Card Member receivables purchased without recourse from Receivables Financing Corporation VIII LLC (RFC VIII).

Card Member receivables as of September 30, 2015 and December 31, 2014 consisted of:

(Millions)		2015		2014
U.S. Card Services	$	4,532	$	2,755
International Card Services (a)(b)		1,984		1,316
Global Commercial Services (b)		11,815		10,436
Card Member receivables (c)		18,331		14,507
Less: Reserve for losses		109		94
Card Member receivables, net (d)	$	18,222	$	14,413

• International is comprised of consumer and small business services.
• In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves witha corresponding decline in loans to affiliates.
• Net of deferred discount revenue totaling $22 million and $16million as of September 30, 2015 and December 31, 2014, respectively.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

The net volume of Card Member loans purchased during both the nine months endedSeptember 30,2015and 2014 was $2.9 billion.

Card Member loans as of September 30, 2015 and December 31, 2014consisted of:

(Millions)		2015		2014
International Card Services	$	391	$	401
Less: Reserve for losses		4		3
Card Member loans, net (a)	$	387	$	398

Card Member loans modified in a TDR program were immaterial.

Card Member Receivables and Loans 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 receivables and Card Member loans as of September 30, 2015 and December 31, 2014:

					30-59		60-89
					Days		Days		90+ Days
2015 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Card Services	$	4,491	$	18	$	8	$	15	$	4,532
	International Card Services		1,956		10		6		12		1,984
	Global Commercial Services (a)		(b)		(b)		(b)		84		11,815
Card Member Loans:
	International Card Services	$	389	$	1	$	―	$	1	$	391
					30-59		60-89
					Days		Days		90+ Days
2014 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Card Services	$	2,729	$	12	$	5	$	9	$	2,755
	International Card Services		1,296		8		4		8		1,316
	Global Commercial Services (a)		(b)		(b)		(b)		89		10,436
Card Member Loans:
	International Card Services	$	399	$	1	$	―	$	1	$	401

• For Card Member 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 collection procedures are initiated 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.
• 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.

Credit Quality Indicators for Card Member Receivables and Loans

The following tables present the key credit quality indicators as of or for the nine months endedSeptember 30:

		2015				2014
				30+ Days				30+ Days
		Net		Past Due		Net		Past Due
		Write-off		as a % of		Write-off		as a % of
		Rate	(a)	Total		Rate	(a)	Total
Card Member Receivables:
	U.S. Card Services	0.85	%	0.90	%	1.13	%	1.02	%
	International Card Services	1.59	%	1.41	%	1.96	%	1.61	%
Card Member Loans:
	International Card Services	1.03	%	0.51	%	1.13	%	0.56	%
		2015				2014
		Net Loss		90+ Days		Net Loss		90+ Days
		Ratio as a		Past		Ratio as a		Past
		% of		Billing		% of		Billing
		Charge		as a % of		Charge		as a % of
		Volume	(b)	Receivables		Volume	(b)	Receivables
Card Member Receivables:
	Global Commercial Services	0.07	%	0.71	%	0.07	%	0.79	%

• Representsthe amount of Card Member receivables or Card Member loans owned by Credco that are written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods indicated.
• Representsthe amount of Card Member receivables owned by Credco that are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated.

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Reserves (Details Textuals) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Reserves For Losses (Textuals) [Abstract]
Participation interest in Card Member receivables purchased from affiliates	$ 5,800	$ 3,400
Recoveries, Card Member receivables	79	76
Amount of Card Member loan sold to joint ventures	0	183
Recoveries, Card Member loans	1	3
Sale of participation interest in Card Member receivables and Card Member receivables	$ 1,400	$ 400

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Reserves (Details 1) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Changes in the Card Member loans reserve for losses
Balance, January 1	$ 3	$ 4
Provisions	4	6
Net write-offs	(3)	(4)
Other debits	0	(5)
Balance, June 30	$ 4	$ 1

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Derivatives and Hedging Activities (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	$ 414	$ 349
Cash collateral netting	(174)	(63)
Derivative asset and liability netting	(36)	(50)
Total derivatives assets,net	204	236
Other Assets [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	341	276
Other Assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	73	73
Other Assets [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	177	90
Other Assets [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	164	186
Accrued Interest And Other Liabilities Member [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liability	36	53
Cash collateral netting	0	0
Derivative asset and liability netting	(36)	(50)
Total derivatives liabilities, net	0	3
Accrued Interest And Other Liabilities Member [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liability	2	4
Accrued Interest And Other Liabilities Member [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liability	34	49
Accrued Interest And Other Liabilities Member [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liability	0	4
Accrued Interest And Other Liabilities Member [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liability	$ 2	$ 0

XML

Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contract [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Derivative contract	$ 89	$ (77)	$ 91	$ (119)
Hedged item	(93)	81	(91)	128
Net hedge ineffectiveness	$ (4)	$ 4	$ 0	$ 9

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Disclosure Text Block [Abstract]

Basis of Presentation

1. Basis of Presentation

The Company

American Express Credit Corporation (Credco), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a wholly owned subsidiary of American Express Company (American Express). American Express charge cards and American Express credit cards are collectively referred to herein as the cards.

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express^® Green Card, the American Express^® Gold Card, Platinum Card^®, Corporate Card and other American Express cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest-earning revolving loans are primarily funded by subsidiaries of TRS other than Credco.

Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis; however, there can be no assurance that the terms of these arrangements are the same as would be negotiated between independent, unrelated parties.

American Express provides Credco with financial support with respect to maintenance of its minimum overall 1.25 fixed charge coverage ratio, which is achieved by charging appropriate discount rates on the purchases of Card Member receivables and loansCredco makes from, and the interest rates on the loans Credco provides to, TRS and other American Express subsidiaries. Each monthly period, the discount and interest rates are determined to generate income for Credco that is sufficient to maintain its minimum fixed charge coverage ratio.The revenue earned by Credco from purchasing Card Member receivables and loans at a discount is reported as discount revenue on the Consolidated Statements of Income and Retained Earnings.

The accompanying Consolidated Financial Statements should be read in conjunction with the consolidated financial statements in Credco’s Annual Report on Form 10-K for the year ended December 31,2014 (Form 10-K). If not materially different, certain footnote disclosures included in the Form 10-K have been omitted from this Quarterly Report on Form 10-Q.

The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, 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. 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. These reclassifications did not have a material impact on Credco’s financial position, results of operations or cash flows.

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition. The guidance establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. The guidance, as amended, supersedes most of the current revenue recognition requirements, and is effective January 1, 2018, with early adoption as of January 1, 2017, permitted. Credco continues to evaluate the impact this guidance, including the method of implementation, will have on its financial position, results of operations and cash flows, among other items.

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Derivatives and Hedging Activities (Details 2) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Pretax (losses) gains	$ 42	$ (14)	$ 11	$ 49
Other Expense [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax (losses) gains	$ 42	$ (14)	$ 11	$ 49

XML

Income Tax (Details Textuals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Taxes (Textuals) [Abstract]
Possible decrease in unrecognized tax benefits as a result of potential resolutions of prior years' tax	$ 269		$ 269
Unrecognized tax benefits, amounts recorded to equity, if recognized	$ 267		$ 267
Effective tax rate	13.30%	(1.20%)	15.20%	(6.00%)
U.S. statutory federal income tax rate			35.00%
Out of period tax adjustment			$ 11
Internal Revenue Service (IRS) [Member] | Earliest Year [Member]
Income Tax Contingency [Line Items]
Open tax years by major tax jurisdiction			2008
Internal Revenue Service (IRS) [Member] | Latest Year [Member]
Income Tax Contingency [Line Items]
Open tax years by major tax jurisdiction			2011

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Consolidated Statements of Income and Retained Earnings - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Discount revenue earned from purchased Card Member receivables and loans	$ 126	$ 116	$ 359	$ 386
Interest income from affiliates and other	53	105	194	297
Finance revenue	8	11	22	36
Total revenues	187	232	575	719
Expenses
Provisions for losses	46	42	120	151
Interest expense	83	131	283	390
Interest expense to affiliates	3	2	7	5
Other, net	10	(29)	(19)	(76)
Total expenses	142	146	391	470
Pretax income	45	86	184	249
Income tax provision (benefit)	6	(1)	28	(15)
Net income	39	87	156	264
Retained earnings at beginning of period	3,072	3,025	3,015	3,004
Dividends	(16)	(99)	(76)	(255)
Retained earnings at end of period	$ 3,095	$ 3,013	$ 3,095	$ 3,013

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Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Assets
Card Member receivables, reserves	$ 109	$ 94
Card Member loans, reserves	$ 4	$ 3
Shareholder's Equity
Common stock, par value	$ 0.1	$ 0.1
Common stock, authorized	3.0	3.0
Common stock, issued	1.5	1.5
Common stock, outstanding	1.5	1.5
Accumulated other comprehensive loss:
Foreign currency translation adjustments, tax	$ 255	$ 92

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Fair Value (Details 1) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	$ 387	$ 398
Loans to affiliates and other	9,818	15,303
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	21,296	24,282
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	19,500	16,800
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	6,500	6,000
Level 2 [Member]
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	19,400	16,800
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	0	0
Loans to affiliates and other	6,900	12,300
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	6,500	6,000
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	21,300	24,500
Fair Value, Inputs, Level 3 [Member]
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	0	0
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	400	400
Loans to affiliates and other	2,700	2,900
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	0	0
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	0	0
Estimate of Fair Value, Fair Value Disclosure [Member]
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	19,500	16,800
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	400	400
Loans to affiliates and other	9,600	15,200
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	6,500	6,000
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	21,300	$ 24,500
FairValueInputsLevel1Member
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	$ 100

XML

Card Member Receivables and Loans (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Accounts Receivable [Abstract]
Card Member receivables	$ 18,331	$ 14,507
Less: Reserve for losses	109	94	$ 98	$ 76
Card Member receivables, net	18,222	14,413
U.S. Card Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	4,532	2,755
Global Commercial Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	11,815	10,436
International Card Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	$ 1,984	$ 1,316

XML

Fair Value (Details Textuals) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
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

XML

Card Member Receivables and Loans (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
U.S. Card Services [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Current	$ 4,491	$ 2,729
Total aging	4,532	2,755
U.S. Card Services [Member] | 30 to 59 days past due [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Period past due	18	12
U.S. Card Services [Member] | 60 to 89 days past due [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Period past due	8	5
U.S. Card Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Period past due	15	9
International Card Services [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Current	1,956	1,296
Total aging	1,984	1,316
International Card Services [Member] | Card Member Loans [Member]
Financing receivable recorded investment aging
Current	389	399
Total aging	391	401
International Card Services [Member] | 30 to 59 days past due [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Period past due	10	8
International Card Services [Member] | 30 to 59 days past due [Member] | Card Member Loans [Member]
Financing receivable recorded investment aging
Period past due	1	1
International Card Services [Member] | 60 to 89 days past due [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Period past due	6	4
International Card Services [Member] | 60 to 89 days past due [Member] | Card Member Loans [Member]
Financing receivable recorded investment aging
Period past due	0	0
International Card Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Period past due	12	8
International Card Services [Member] | 90+ days past due [Member] | Card Member Loans [Member]
Financing receivable recorded investment aging
Period past due	1	1
Global Commercial Services [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Total aging	11,815	10,436
Global Commercial Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Period past due	$ 84	$ 89

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities
Net income	$ 156	$ 264
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for losses	120	151
Amortization of underwriting expense	24	18
Deferred taxes	8	2
Changes in operating assets and liabilities:
Interest, taxes and other amounts due to/from affiliates	(123)	124
Other operating assets and liabilities	413	(551)
Net cash provided by operating activities	598	8
Cash Flows from Investing Activities
Net increase in Card Member receivables and loans	(4,230)	(2,699)
Net decrease (increase) in loans to affiliates and other	4,722	(3,956)
Net decrease in due from affiliates	1,360	917
Net cash provided by (used in) investing activities	1,852	(5,738)
Cash Flows from Financing Activities
Net decrease in short-term debt	(394)	(200)
Net increase in short-term debt to affiliates	702	1,076
Issuance of long-term debt	5,527	7,509
Principal payments on long-term debt	(8,145)	(2,402)
Dividends paid	(76)	(255)
Net cash (used in) provided by financing activities	(2,386)	5,728
Effect of foreign currency exchange rates on cash and cash equivalents	(3)	(4)
Net increase (decrease) in cash and cash equivalents	61	(6)
Cash and cash equivalents at beginning of period	74	86
Cash and cash equivalents at end of period	$ 135	$ 80

XML

Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Income and Comprehensive Income [Abstract]
Net income	$ 39	$ 87	$ 156	$ 264
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	(188)	(129)	(342)	(110)
Other comprehensive loss	(188)	(129)	(342)	(110)
Comprehensive (loss) income	$ (149)	$ (42)	$ (186)	$ 154

XML

Card Member Receivables and Loans (Tables)

9 Months Ended

Sep. 30, 2015

Accounts Receivable And Loans Tables [Abstract]

Card Member receivables detail

Card Member receivables as of September 30, 2015 and December 31, 2014 consisted of:

(Millions)		2015		2014
U.S. Card Services	$	4,532	$	2,755
International Card Services (a)(b)		1,984		1,316
Global Commercial Services (b)		11,815		10,436
Card Member receivables (c)		18,331		14,507
Less: Reserve for losses		109		94
Card Member receivables, net (d)	$	18,222	$	14,413

• International is comprised of consumer and small business services.
• In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves witha corresponding decline in loans to affiliates.
• Net of deferred discount revenue totaling $22 million and $16million as of September 30, 2015 and December 31, 2014, respectively.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member loans detail

Card Member loans as of September 30, 2015 and December 31, 2014consisted of:

(Millions)		2015		2014
International Card Services	$	391	$	401
Less: Reserve for losses		4		3
Card Member loans, net (a)	$	387	$	398

Card Member loans modified in a TDR program were immaterial.

Aging of Card Member loans and receivables

The following table presents the aging of Card Member receivables and Card Member loans as of September 30, 2015 and December 31, 2014:

					30-59		60-89
					Days		Days		90+ Days
2015 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Card Services	$	4,491	$	18	$	8	$	15	$	4,532
	International Card Services		1,956		10		6		12		1,984
	Global Commercial Services (a)		(b)		(b)		(b)		84		11,815
Card Member Loans:
	International Card Services	$	389	$	1	$	―	$	1	$	391
					30-59		60-89
					Days		Days		90+ Days
2014 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Card Services	$	2,729	$	12	$	5	$	9	$	2,755
	International Card Services		1,296		8		4		8		1,316
	Global Commercial Services (a)		(b)		(b)		(b)		89		10,436
Card Member Loans:
	International Card Services	$	399	$	1	$	―	$	1	$	401

• For Card Member 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 collection procedures are initiated 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.
• 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.

Credit quality indicators for loans and receivables

The following tables present the key credit quality indicators as of or for the nine months endedSeptember 30:

		2015				2014
				30+ Days				30+ Days
		Net		Past Due		Net		Past Due
		Write-off		as a % of		Write-off		as a % of
		Rate	(a)	Total		Rate	(a)	Total
Card Member Receivables:
	U.S. Card Services	0.85	%	0.90	%	1.13	%	1.02	%
	International Card Services	1.59	%	1.41	%	1.96	%	1.61	%
Card Member Loans:
	International Card Services	1.03	%	0.51	%	1.13	%	0.56	%
		2015				2014
		Net Loss		90+ Days		Net Loss		90+ Days
		Ratio as a		Past		Ratio as a		Past
		% of		Billing		% of		Billing
		Charge		as a % of		Charge		as a % of
		Volume	(b)	Receivables		Volume	(b)	Receivables
Card Member Receivables:
	Global Commercial Services	0.07	%	0.71	%	0.07	%	0.79	%

• Representsthe amount of Card Member receivables or Card Member loans owned by Credco that are written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods indicated.
• Representsthe amount of Card Member receivables owned by Credco that are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 06, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN EXPRESS CREDIT CORPORATION
Entity Central Index Key	0000004969
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,504,938

XML

Reserves for Losses (Tables)

9 Months Ended

Sep. 30, 2015

Reserves For Losses Tables [Abstract]

Changes in the Card Member receivable reserve for losses

The following table presents changes in the Card Member receivables reserve for losses for the nine months endedSeptember 30:

(Millions)		2015		2014
Balance, January 1		$	94	$	76
	Provisions		116		145
	Other credits (a)		32		15
	Net write-offs (b)		(124)		(131)
	Other debits (c)		(9)		(7)
Balance, September 30 (d)		$	109	$	98

• Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $5.8 billion and $3.4 billion for the nine months endedSeptember 30, 2015 and 2014, respectively.
• Net of recoveries of $79 million and $76 million for the nine months endedSeptember 30, 2015 and 2014, respectively.
• Primarily reserve balances applicable to participation interests in Card Member receivables sold to an affiliate and, for 2014, reserves applicable to Card Member receivables sold to the joint ventures that issue American Express cards in certain countries (American Express joint ventures) following the termination of the agreements to purchase Card Member receivables in the third quarter of 2014. Sales of these participation interests and Card Member receivables totaled $1.4 billion and $0.4 billion for the nine months endedSeptember 30, 2015 and 2014, respectively.
• In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves witha corresponding decline in loans to affiliates.

Changes in the Card Member loans reserve for losses

The following table presents changes in the Card Member loans reserve for losses for the nine months endedSeptember 30:

(Millions)		2015		2014
Balance, January 1		$	3	$	4
	Provisions		4		6
	Net write-offs(a)		(3)		(4)
	Other debits(b)		―		(5)
Balance, September 30		$	4	$	1

• Net of recoveries of $1 million and $3 million for the nine months endedSeptember 30, 2015 and 2014, respectively.
• Primarily reserve balances applicable to sales of Card Member loans to the American Express joint ventures following the termination of the agreements to purchase Card Member loans in the third quarter of 2014. Card Member loans sold totaled nil and $183 million for the nine months ended September 30, 2015 and 2014, respectively.

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Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Comprehensive Income (Loss), Tax [Abstract]
Foreign currency translation adjustment	$ 112	$ 69	$ 163	$ (6)

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Fair Values

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Values

5. Fair Values

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy as Level 2, as of September 30, 2015 and December 31, 2014:

(Millions)		2015		2014
Assets:
Derivatives (a)	$	414	$	349
Total assets		414		349
Liabilities:
Derivatives (a)		36		53
Total liabilities	$	36	$	53

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

The following table summarizes the estimated fair values ofCredco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of September 30, 2015 and December 31, 2014.The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2015 and December 31, 2014, and require management judgment. These figures may not be indicative of future fair values, nor can the fair value of Credco be reliably estimated by aggregating the amounts presented.

				Carrying		Corresponding Fair Value Amount
2015 (Billions)				Value		Total		Level 1			Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values
		equal or approximate fair value		$	19.5	$	19.5	$	0.1	(a)	$	19.4	$	―
	Financial assets carried at other than fair value
			Card Member loans, net		0.4		0.4		―			―		0.4
			Loans to affiliates and others		9.8		9.6		―			6.9		2.7
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			6.5		6.5		―			6.5		―
	Financial liabilities carried at other than fair value
			Long-term debt	$	21.3	$	21.3	$	―		$	21.3	$	―
				Carrying		Corresponding Fair Value Amount
2014 (Billions)				Value		Total		Level 2			Level 3
Financial Assets:
	Financial assets for which carrying values
		equal or approximate fair value		$	16.8	$	16.8	$	16.8		$	―
	Financial assets carried at other than fair value
			Card Member loans, net		0.4		0.4		―			0.4
			Loans to affiliates and others		15.3		15.2		12.3			2.9
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			6.0		6.0		6.0			―
	Financial liabilities carried at other than fair value
			Long-term debt	$	24.3	$	24.5	$	24.5		$	―

(a) Reflects cash and due from banks.

Nonrecurring Fair Value Measurements

During the nine months endedSeptember 30, 2015 and during the year ended December 31, 2014, Credco did not have any assets that were measured at fair value due to impairment on a nonrecurring basis.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

4. Derivatives and Hedging Activities

Credco uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rate and foreign exchange rates, 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 Credco’s market risk management. Credco does not transact in derivatives for trading purposes.

In relation to Credco’s credit risk, under the terms of the derivative agreements it has with its various counterparties, Credco is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Based on the assessment of credit risk of Credco’s derivative counterparties as of September 30, 2015 and December 31, 2014, Credco does not have derivative positions that warrant credit valuation adjustments.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of September 30, 2015 and December 31, 2014:

			Other Assets				Accrued Interest and Other Liabilities
			Fair Value				Fair Value
(Millions)			2015		2014		2015		2014
Derivatives designated as hedging instruments:
	Interest rate contracts
		Fair value hedges	$	177	$	90	$	―	$	4
	Foreign exchange contracts
		Net investment hedges		164		186		2		―
Total derivatives designated as hedging instruments				341		276		2		4
Derivatives not designated as hedging instruments:
	Foreign exchange contracts			73		73		34		49
Total derivatives, gross				414		349		36		53
Less: Cash collateral netting (a)				(174)		(63)		―		―
Derivative asset and derivative liability netting (b)				(36)		(50)		(36)		(50)
Total derivatives, net (c)			$	204	$	236	$	―	$	3

• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. From time to time, Credcoalso receives non-cash collateral from counterparties in the form of security interests in U.S. Treasury securities,which reduces Credco’s risk exposure, but does not reduce the net exposure on Credco’s Consolidated Balance Sheets.Credco had such non-cash collateral as of December 31, 2014, with a fair value of $40 million, none of which was sold or repledged. Credco did not have any such non-cash collateral as of September 30, 2015. Additionally, Credco posted $133 million and $91million as ofSeptember 30, 2015 and December 31, 2014, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other assets on Credco’s Consolidated Balance Sheets and are not netted against the derivative balances.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
• Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within Other assets and Accrued interest and other liabilities on Credco’s Consolidated Balance Sheets.

A majority of Credco’s derivative assets and liabilities as of September 30, 2015 and December 31, 2014 are subject to master netting agreements with its derivative counterparties. In addition, Credco has no derivative amounts subject to enforceable master netting arrangements that are not offset on Credco’s Consolidated Balance Sheets.

Fair Value Hedges

Credco is exposed to interest rate risk associated with its fixed-rate long-term debt. Credco uses interest rate swaps to economically convert certain fixed-rate debt obligations to floating-rate obligations at the time of issuance. As ofSeptember 30, 2015and December 31, 2014, Credco hedged $15.6 billion and $14.7 billion, respectively, of its fixed-rate debt to floating-rate debt using interest rate swaps.

The following table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco’s fair value hedgesfor the three and nine months endedSeptember 30:

Three Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative relationship	Income Statement Line Item	2015		2014		Income Statement Line Item	2015		2014		2015		2014
Interest rate contracts	Other expenses	$	89	$	(77)	Other expenses	$	(93)	$	81	$	(4)	$	4
Nine Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative relationship	Income Statement Line Item	2015		2014		Income Statement Line Item	2015		2014		2015		2014
Interest rate contracts	Other expenses	$	91	$	(119)	Other expenses	$	(91)	$	128	$	―	$	9

Credco also recognized a net reduction in interest expense on long-term debt of $47 million and $50 million for the three months ended September 30, 2015 and 2014, respectively, and $133 million and $145 million for the nine months endedSeptember 30, 2015 and 2014, respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges.

Net Investment Hedges

The effective portion of the gain or (loss) on net investment hedges, net of taxes, recorded in Accumulated Other Comprehensive Loss as part of the cumulative translation adjustment, was $188 million and $116 million for the three months ended September 30, 2015 and 2014, respectively, and $274 million and $(10) million for the nine months endedSeptember 30, 2015 and 2014, respectively, with any ineffective portion recognized in Other expenses during the period of change. During the three and nine months endedSeptember 30, 2015 and 2014,no ineffectiveness was recognized in either of these two periods.

The following table summarizes the impact on the Consolidated Statements of Income and retained earnings associated with Credco’sderivatives not designated as hedges:

		Pretax Gains (losses)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		Amount				Amount
Description (Millions)	Income Statement Line Item	2015		2014		2015		2014
Foreign exchange contracts	Other expenses	$	42	$	(14)	$	11	$	49
Total		$	42	$	(14)	$	11	$	49

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Card Member Receivables and Loans (Details 1) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Card Member loans
Less: Reserve for losses	$ 4	$ 3	$ 1	$ 4
Card Member loans, less reserves	387	398
International Card Services [Member]
Card Member loans
Card Member loans	$ 391	$ 401

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2015

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 September 30, 2015 and December 31, 2014:

			Other Assets				Accrued Interest and Other Liabilities
			Fair Value				Fair Value
(Millions)			2015		2014		2015		2014
Derivatives designated as hedging instruments:
	Interest rate contracts
		Fair value hedges	$	177	$	90	$	―	$	4
	Foreign exchange contracts
		Net investment hedges		164		186		2		―
Total derivatives designated as hedging instruments				341		276		2		4
Derivatives not designated as hedging instruments:
	Foreign exchange contracts			73		73		34		49
Total derivatives, gross				414		349		36		53
Less: Cash collateral netting (a)				(174)		(63)		―		―
Derivative asset and derivative liability netting (b)				(36)		(50)		(36)		(50)
Total derivatives, net (c)			$	204	$	236	$	―	$	3

• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. From time to time, Credcoalso receives non-cash collateral from counterparties in the form of security interests in U.S. Treasury securities,which reduces Credco’s risk exposure, but does not reduce the net exposure on Credco’s Consolidated Balance Sheets.Credco had such non-cash collateral as of December 31, 2014, with a fair value of $40 million, none of which was sold or repledged. Credco did not have any such non-cash collateral as of September 30, 2015. Additionally, Credco posted $133 million and $91million as ofSeptember 30, 2015 and December 31, 2014, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other assets on Credco’s Consolidated Balance Sheets and are not netted against the derivative balances.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
• Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within Other assets and Accrued interest and other liabilities on Credco’s Consolidated Balance Sheets.

Effect of fair value hedges on results of operations

The following table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco’s fair value hedgesfor the three and nine months endedSeptember 30:

Three Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative relationship	Income Statement Line Item	2015		2014		Income Statement Line Item	2015		2014		2015		2014
Interest rate contracts	Other expenses	$	89	$	(77)	Other expenses	$	(93)	$	81	$	(4)	$	4
Nine Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative relationship	Income Statement Line Item	2015		2014		Income Statement Line Item	2015		2014		2015		2014
Interest rate contracts	Other expenses	$	91	$	(119)	Other expenses	$	(91)	$	128	$	―	$	9

Derivative instruments gain (loss) recognized in income

The following table summarizes the impact on the Consolidated Statements of Income and retained earnings associated with Credco’sderivatives not designated as hedges:

		Pretax Gains (losses)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		Amount				Amount
Description (Millions)	Income Statement Line Item	2015		2014		2015		2014
Foreign exchange contracts	Other expenses	$	42	$	(14)	$	11	$	49
Total		$	42	$	(14)	$	11	$	49

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

The results of operations of Credco are included in the consolidated U.S. federal income tax return of American Express. Under an agreement with American Express, provision for income taxes is recognized on a separate company basis. If benefits for net operating losses, future tax deductions and foreign tax credits cannot be recognized on a separate company basis, such benefits are then recognized based upon a share, derived by formula, of those deductions and credits that are recognizable on an American Express consolidated reporting basis.

American Express is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which American Express has significant business operations. The tax years under examination and open for examination vary by jurisdiction. The IRS has completed its field examination of American Express’ federal tax returns for years through 2007; however, refund claims for those years continue to be reviewed by the IRS. In addition, American Express is currently under examination by the IRS for the years 2008 through 2011.

Credco believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as$269million 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$269 million of unrecognized tax benefits, approximately $267million relates to amounts that, if recognized, would be recorded to shareholder’s equity and would not impact Credco’s results of operations or the effective tax rate.

The effective tax rates were 13.3 percent and 15.2 percent for the three and nine months endedSeptember 30, 2015, respectively, and (1.2) percent and (6) percent for the three and nine months endedSeptember 30, 2014, respectively. The tax rate in each of the periods reflects the geographic mix of expenses in the United States attracting a 35 percent statutory benefit and foreign earnings taxed at lower rates, which are indefinitely reinvested. In addition, the effective tax rates for each of the periods reflect the impact of certain prior years’ tax items, including those noted below.

The results for the nine months ended September 30, 2015 reflect out-of-period corrections that increased tax expense by $11 million. The corrections relate to tax calculations of foreign exchange gains/losses in one jurisdiction reflected in the 2014 results. None of the current or prior period financial statements were materially misstated from these corrections.

The tax rate in each of the periods reflects the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States. Credco’s provision for income taxes for interim financial periods is not based on an estimated annual effective rate due to volatility in certain components of revenues and expenses that prevents Credco from projecting a reliable estimate of full year pretax income. A discrete calculation of the provision for income taxes is calculated for each interim period.

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Variable Interest Entity

9 Months Ended

Sep. 30, 2015

Variable Interest Entity [Abstract]

Variable Interest Entity

6. Variable Interest Entity

Credco has established a Variable Interest Entity (VIE), American Express Canada Credit Corporation (AECCC), used primarily to lend funds to affiliates,through the issuance of notes in Canada under a medium-term note program. All notes issued under this program are fully guaranteed by Credco. Credco is considered the primary beneficiary of the entity and owns all of the outstanding voting interests and, therefore, consolidates the entity in accordance with accounting guidance governing consolidation of VIEs.Total assets as of September 30, 2015 and December 31, 2014 were $1.8 billion and $2.1 billion, respectively,the majority of which were eliminated in consolidation. Total liabilities as of September 30, 2015 and December 31, 2014 were $1.7 billion and$2.0 billion, respectively. As of September 30, 2015 and December 31, 2014, $845 million and $969 million, respectively, of liabilities were eliminated in consolidation.The assets of the VIE are not used solely to settle the obligations of the VIE. The note holders of the VIE have recourse to Credco.

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Changes in Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Sep. 30, 2015

Changes In Accumulated Other Comprehensive Loss Income Disclosure [Abstract]

Changes In Accumulated Other Comprehensive (Loss) Income

7. Changes In Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three and nine months endedSeptember 30, 2015 and 2014were as follows:

		Foreign		Accumulated
		Currency		Other
		Translation		Comprehensive
Three Months Ended September 30, 2015 (Millions), net of tax		Adjustments		(Loss) Income
Balances as of June 30, 2015	$	(941)	$	(941)
Net translation loss on investments in foreign operations		(376)		(376)
Net gains related to hedges of investment in foreign operations		188		188
Net change in accumulated other comprehensive loss		(188)		(188)
Balances as of September 30, 2015	$	(1,129)	$	(1,129)
		Foreign		Accumulated
		Currency		Other
		Translation		Comprehensive
Nine Months Ended September 30, 2015 (Millions), net of tax		Adjustments		(Loss) Income
Balances as of December 31, 2014	$	(787)	$	(787)
Net translation loss on investments in foreign operations		(616)		(616)
Net gains related to hedges of investment in foreign operations		274		274
Net change in accumulated other comprehensive loss		(342)		(342)
Balances as of September 30, 2015	$	(1,129)	$	(1,129)
		Foreign		Accumulated
		Currency		Other
		Translation		Comprehensive
Three Months Ended September 30, 2014 (Millions), net of tax		Adjustments		(Loss) Income
Balances as of June 30, 2014	$	(459)	$	(459)
Net translation loss on investments in foreign operations		(245)		(245)
Net gains related to hedges of investment in foreign operations		116		116
Net change in accumulated other comprehensive loss		(129)		(129)
Balances as of September 30, 2014	$	(588)	$	(588)
		Foreign		Accumulated
		Currency		Other
		Translation		Comprehensive
Nine Months Ended September 30, 2014 (Millions), net of tax		Adjustments		(Loss) Income
Balances as of December 31, 2013	$	(478)	$	(478)
Net translation loss on investments in foreign operations		(100)		(100)
Net losses related to hedges of investment in foreign operations		(10)		(10)
Net change in accumulated other comprehensive loss		(110)		(110)
Balances as of September 30, 2014	$	(588)	$	(588)

No amounts were reclassified out of Accumulated Other Comprehensive Loss into the Consolidated Statements of Income and Retained Earnings for the three and nine months endedSeptember 30, 2015 and 2014.

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounts Receivable And Loans and Reserves For Cardmember Losses [Abstract]

Card Member And Other Receivables And Loans

American Express’ charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively.

Reserves For Losses Policy [Abstract]

Reserves for losses

Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Derivatives And Hedging Activities Policy [Abstract]

Derivatives

Credco uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rate and foreign exchange rates, 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 Credco’s market risk management. Credco does not transact in derivatives for trading purposes.

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Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Assets [Abstract]
Derivatives	$ 414	$ 349
Total assets	414	349
Liabilities [Abstract]
Derivatives	36	53
Total liabilities	$ 36	$ 53

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Changes in Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 30, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Components of comprehensive income (loss), net of tax

Changes in each component for the three and nine months endedSeptember 30, 2015 and 2014were as follows:

		Foreign		Accumulated
		Currency		Other
		Translation		Comprehensive
Three Months Ended September 30, 2015 (Millions), net of tax		Adjustments		(Loss) Income
Balances as of June 30, 2015	$	(941)	$	(941)
Net translation loss on investments in foreign operations		(376)		(376)
Net gains related to hedges of investment in foreign operations		188		188
Net change in accumulated other comprehensive loss		(188)		(188)
Balances as of September 30, 2015	$	(1,129)	$	(1,129)
		Foreign		Accumulated
		Currency		Other
		Translation		Comprehensive
Nine Months Ended September 30, 2015 (Millions), net of tax		Adjustments		(Loss) Income
Balances as of December 31, 2014	$	(787)	$	(787)
Net translation loss on investments in foreign operations		(616)		(616)
Net gains related to hedges of investment in foreign operations		274		274
Net change in accumulated other comprehensive loss		(342)		(342)
Balances as of September 30, 2015	$	(1,129)	$	(1,129)
		Foreign		Accumulated
		Currency		Other
		Translation		Comprehensive
Three Months Ended September 30, 2014 (Millions), net of tax		Adjustments		(Loss) Income
Balances as of June 30, 2014	$	(459)	$	(459)
Net translation loss on investments in foreign operations		(245)		(245)
Net gains related to hedges of investment in foreign operations		116		116
Net change in accumulated other comprehensive loss		(129)		(129)
Balances as of September 30, 2014	$	(588)	$	(588)
		Foreign		Accumulated
		Currency		Other
		Translation		Comprehensive
Nine Months Ended September 30, 2014 (Millions), net of tax		Adjustments		(Loss) Income
Balances as of December 31, 2013	$	(478)	$	(478)
Net translation loss on investments in foreign operations		(100)		(100)
Net losses related to hedges of investment in foreign operations		(10)		(10)
Net change in accumulated other comprehensive loss		(110)		(110)
Balances as of September 30, 2014	$	(588)	$	(588)

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Card Member Receivables and Loans (Details Textuals) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net volume of Card Member receivables purchased	$ 167,000	$ 164,000
Net volume of Card Member loans purchased	2,900	$ 2,900
Deferred discount revenue on Card Member receivable	22		$ 16
RFC VIII [Member]
Related Party Transaction [Line Items]
Participation Interests In Card Member Receivables Purchased	$ 4,500		$ 2,800

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Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 135	$ 74
Card Member receivables, less reserves	18,222	14,413
Card Member loans, less reserves	387	398
Loans to affiliates and other	9,818	15,303
Due from affiliates	1,009	2,206
Other assets	417	446
Total assets	29,988	32,840
Liabilities
Short-term debt	375	769
Short-term debt to affiliates	5,033	4,334
Long-term debt	21,296	24,282
Total debt	26,704	29,385
Due to affiliates	1,044	888
Accrued interest and other liabilities	113	178
Total liabilities	27,861	30,451
Shareholder's Equity
Common stock, $.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares	0	0
Additional paid-in-capital	161	161
Retained earnings	3,095	3,015
Accumulated other comprehensive loss:
Foreign currency translation adjustments, net of tax	(1,129)	(787)
Total accumulated other comprehensive loss	(1,129)	(787)
Total shareholder's equity	2,127	2,389
Total liabilities and shareholder's equity	$ 29,988	$ 32,840

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Reserves for Losses

9 Months Ended

Sep. 30, 2015

Reserves for Losses [Abstract]

Reserves for Losses

3. Reserves for Losses

Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the nine months endedSeptember 30:

(Millions)		2015		2014
Balance, January 1		$	94	$	76
	Provisions		116		145
	Other credits (a)		32		15
	Net write-offs (b)		(124)		(131)
	Other debits (c)		(9)		(7)
Balance, September 30 (d)		$	109	$	98

• Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $5.8 billion and $3.4 billion for the nine months endedSeptember 30, 2015 and 2014, respectively.
• Net of recoveries of $79 million and $76 million for the nine months endedSeptember 30, 2015 and 2014, respectively.
• Primarily reserve balances applicable to participation interests in Card Member receivables sold to an affiliate and, for 2014, reserves applicable to Card Member receivables sold to the joint ventures that issue American Express cards in certain countries (American Express joint ventures) following the termination of the agreements to purchase Card Member receivables in the third quarter of 2014. Sales of these participation interests and Card Member receivables totaled $1.4 billion and $0.4 billion for the nine months endedSeptember 30, 2015 and 2014, respectively.
• In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves witha corresponding decline in loans to affiliates.

Changes in Card Member Loans Reserve for Losses

The following table presents changes in the Card Member loans reserve for losses for the nine months endedSeptember 30:

(Millions)		2015		2014
Balance, January 1		$	3	$	4
	Provisions		4		6
	Net write-offs(a)		(3)		(4)
	Other debits(b)		―		(5)
Balance, September 30		$	4	$	1

• Net of recoveries of $1 million and $3 million for the nine months endedSeptember 30, 2015 and 2014, respectively.
• Primarily reserve balances applicable to sales of Card Member loans to the American Express joint ventures following the termination of the agreements to purchase Card Member loans in the third quarter of 2014. Card Member loans sold totaled nil and $183 million for the nine months ended September 30, 2015 and 2014, respectively.

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Reserves (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Changes in the Card Member receivable reserve for losses
Balance, January 1	$ 94	$ 76
Provisions	116	145
Other credits	32	15
Net write-offs	(124)	(131)
Other debits	(9)	(7)
Balance, June 30	$ 109	$ 98

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Changes In Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Changes in other comprehensive income
Balances as of start of period			$ (787)
Balances as of end of period	$ (1,129)		(1,129)
Foreign Currency Translation Adjustment [Member]
Changes in other comprehensive income
Balances as of start of period	(941)	$ (459)	(787)	$ (478)
Net translation loss on investment in foreign operations	(376)	(245)	(616)	(100)
Net gains (losses) related to hedges of investment in foreign operations	188	116	274	(10)
Net change in accumulated other comprehensive loss	(188)	(129)	(342)	(110)
Balances as of end of period	(1,129)	(588)	(1,129)	(588)
Accumulated Other Comprehensive (Loss) Income [Member]
Changes in other comprehensive income
Balances as of start of period	(941)	(459)	(787)	(478)
Net translation loss on investment in foreign operations	(376)	(245)	(616)	(100)
Net gains (losses) related to hedges of investment in foreign operations	188	116	274	(10)
Net change in accumulated other comprehensive loss	(188)	(129)	(342)	(110)
Balances as of end of period	$ (1,129)	$ (588)	$ (1,129)	$ (588)

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Fair Values (Tables)

9 Months Ended

Sep. 30, 2015

Fair Values (Tables) [Abstract]

Fair value assets and liabilities measured on recurring basis

The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy as Level 2, as of September 30, 2015 and December 31, 2014:

(Millions)		2015		2014
Assets:
Derivatives (a)	$	414	$	349
Total assets		414		349
Liabilities:
Derivatives (a)		36		53
Total liabilities	$	36	$	53

Refer to Note 4 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 ofCredco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of September 30, 2015 and December 31, 2014.

				Carrying		Corresponding Fair Value Amount
2015 (Billions)				Value		Total		Level 1			Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values
		equal or approximate fair value		$	19.5	$	19.5	$	0.1	(a)	$	19.4	$	―
	Financial assets carried at other than fair value
			Card Member loans, net		0.4		0.4		―			―		0.4
			Loans to affiliates and others		9.8		9.6		―			6.9		2.7
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			6.5		6.5		―			6.5		―
	Financial liabilities carried at other than fair value
			Long-term debt	$	21.3	$	21.3	$	―		$	21.3	$	―
				Carrying		Corresponding Fair Value Amount
2014 (Billions)				Value		Total		Level 2			Level 3
Financial Assets:
	Financial assets for which carrying values
		equal or approximate fair value		$	16.8	$	16.8	$	16.8		$	―
	Financial assets carried at other than fair value
			Card Member loans, net		0.4		0.4		―			0.4
			Loans to affiliates and others		15.3		15.2		12.3			2.9
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			6.0		6.0		6.0			―
	Financial liabilities carried at other than fair value
			Long-term debt	$	24.3	$	24.5	$	24.5		$	―

(a) Reflects cash and due from banks.