XML 79 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Accounts Receivable and Loans | 3 Months Ended
--- | ---
Mar. 31, 2012
Loans Notes Trade And Other Receivables Disclosure [Abstract] |
Accounts Receivable and Loans | 4. Accounts Receivable and Loans The Company's charge and lending payment card products result in the generation of cardmember receivables (from charge payment products) and cardmember loans (from lending payment products) described below. Cardmem ber and Other Receivables Cardmember receivables, representing amounts due from charge payment product customers, are recorded at the time a cardmember enters into a point-of-sale transaction with a merchant. Each charge card transaction is authorized based on its likely economics reflecting a cardmember's most recent credit information and spend patterns. Additionally, g lobal spend limits are established to limit the maximum exposure for the Company. Charge card customers generally must pay the full amount billed each month. Cardmember receivable balances are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 5), and include principal and any related accrued fees. Accounts receivable as of March 31, 2012 and December 31, 2011 were as follows:
(Millions) |  | 2012 |  | 2011
U.S. Card Services(a) |  | $ | 19,319 |  | $ | 20,645
International Card Services |  |  | 6,736 |  |  | 7,222
Global Commercial Services(b) |  |  | 15,298 |  |  | 12,829
Global Network & Merchant Services(c) |  |  | 154 |  |  | 194
Cardmember receivables(d) |  |  | 41,507 |  |  | 40,890
Less: Reserve for losses |  |  | 424 |  |  | 438
Cardmember receivables, net |  | $ | 41,083 |  | $ | 40,452
Other receivables, net(e) |  | $ | 2,827 |  | $ | 3,657
(a) Includes $6.6 b illion and $7.5 billion of gross cardmember receivables available to settle obligations of a consolidated VIE as of March 31, 2012 and December 31, 2011, respectively. (b) Includes $0.5 billion of gross cardmember receivables available to settle obligations of a consolidated VIE as of both March 31, 2012 and December 31, 2011. Also i ncludes $757 million and $563 million due from airlines, of which Delta Air Lines (Delta) comprises $535 million and $340 million as of March 31, 2012 and December 31, 2011, respectively. (c) Includes receivables primarily related to the Company's International Currency Card portfolios. (d) Includes approximately $13.1 billion and $12.8 billion of cardmember receivables outside the United States as of March 31, 2012 and December 31, 2011, respectively. (e) Other receivables primarily represent amounts related to (i) purchased joint venture receivables, (ii) the Company's travel customers and suppliers, (iii) certain merchants for billed discount revenue and (iv) other receivables due to the Company in the ordinary course of business. As of December 31, 2011, other receivables also included investments that matured on December 31, 2011, but which did not settle until January 3, 2012. Other receivables are presented net of reserves for losses of $88 million and $102 million as of March 31, 2012 and December 31, 2011, respectively. Cardmember and Other Loans Cardmember loans, represent ing amounts due from lending payment product customers, are recorded at the time a cardmember enters into a point-of-sale transaction with a merchant or when a charge card customer enters into an extended payment arrangement with the Company. The Company's len ding portfolios primarily include revolving loans to cardmembers obta i ned through either their credit card accounts or the lending on charge feature of their charge card accounts. These loans have a range of terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about cardmembers and in accordance with applicable regulations and the respective product's terms and conditions. Cardmembers holding revolving loans are typically required to make monthly payments based on pre-established amounts. The amounts that cardmembers choose to revolve are subject to f inance c harges. Cardmember loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 5), and include principa l, accrued interest and fees receivable. The Company's policy generally is to cease accruing interest on a cardmember loan at the time the account is written off. The Company establishes reserves for interest that the Company believes will not be collected. Loans as of March 31, 2012 and December 31, 2011 consisted of:
(Millions) |  |  | 2012 |  |  | 2011
U.S. Card Services(a) |  | $ | 51,423 |  | $ | 53,686
International Card Services |  |  | 8,632 |  |  | 8,901
Global Commercial Services |  |  | 42 |  |  | 34
Cardmember loans |  |  | 60,097 |  |  | 62,621
Less: Reserve for losses |  |  | 1,680 |  |  | 1,874
Cardmember loans, net |  | $ | 58,417 |  | $ | 60,747
Other loans, net(b) |  | $ | 465 |  | $ | 419
(a) I ncludes approximately $31.4 billion and $33.8 billion of gross cardmember loans available to settle obligations of a consolidated VIE a s of March 31, 2012 and December 31, 2011, respectively. (b) Other loans primarily represent a store card loan portfolio whose billed b usiness is not processed on the Company's network, loans to merchants and small business installment loans. Other loans are presented net of reserves for losses of $18 million as of both March 31, 2012 and December 31, 2011. Cardmember Loans and C ardmemb er Receivables A ging Generally, a cardmember account is considered past due if payment is not received within 30 days af ter the billing statement date. T he following table represents the aging of cardmember loans and receivables as of March 31, 2012 and December 31, 2011:
|  |  |  |  |  | 30-59 |  |  | 60-89 |  |  | 90+ |  |  |
|  |  |  |  |  | Days |  |  | Days |  |  | Days |  |  |
|  |  |  |  |  | Past |  |  | Past |  |  | Past |  |  |
2012(Millions) |  |  | Current |  |  | Due |  |  | Due |  |  | Due |  |  | Total
Cardmember Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 50,739 |  | $ | 192 |  | $ | 150 |  | $ | 342 |  | $ | 51,423
International Card Services |  |  | 8,480 |  |  | 53 |  |  | 32 |  |  | 67 |  |  | 8,632
Cardmember Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 18,946 |  | $ | 108 |  | $ | 82 |  | $ | 183 |  | $ | 19,319
International Card Services(a) |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 70 |  |  | 6,736
Global Commercial Services(a) |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 95 |  |  | 15,298
2011(Millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cardmember Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 52,930 |  | $ | 218 |  | $ | 165 |  | $ | 373 |  | $ | 53,686
International Card Services |  |  | 8,748 |  |  | 52 |  |  | 32 |  |  | 69 |  |  | 8,901
Cardmember Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 20,246 |  | $ | 122 |  | $ | 81 |  | $ | 196 |  | $ | 20,645
International Card Services(a) |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 63 |  |  | 7,222
Global Commercial Services(a) |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 109 |  |  | 12,829
For c ardmember receivables in ICS and Global Commercial Services (GCS), delinquency data is tracked based on days past billing status rather than days past due. A cardmember account is considered 90 days past billing if payment has not been received within 90 days of the cardmember's billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 90 days past billing the associated cardmember receivable balance is considered as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. Historically, data for periods prior to 90 days past billing are not available due to system constraints. Therefore, it 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 R eceivables The following table s prese nt the key credit quality indicators as of or for the three months ended March 31:
|  | 2012 |  | 2011 |
|  | Net Write-Off Rate |  |  |  | Net Write-Off Rate |  |  |
|  |  |  |  |  | 30 Days |  |  |  |  |  | 30 Days |
|  |  |  | Principal, |  | Past Due |  |  |  | Principal, |  | Past Due |
|  | Principal |  | Interest, & |  | as a % of |  | Principal |  | Interest, & |  | as a % of |
|  | Only | (a) | Fees | (a) | Total |  | Only | (a) | Fees | (a) | Total |
Cardmember Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | 2.3 | % | 2.6 | % | 1.3 | % | 3.7 | % | 4.1 | % | 1.8 | %
International Card Services |  | 2.1 | % | 2.7 | % | 1.8 | % | 3.2 | % | 3.9 | % | 2.4 | %
Cardmember Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | 2.3 | % | 2.5 | % | 1.9 | % | 1.7 | % | 1.8 | % | 1.8 | %
|  |  |  |  |  | 2012 |  | 2011 |
|  |  |  |  |  | Net Loss |  |  |  | Net Loss |  |  |
|  |  |  |  |  | Ratio as |  | 90 Days |  | Ratio as |  | 90 Days |
|  |  |  |  |  | a % of |  | Past Billing |  | a % of |  | Past Billing |
|  |  |  |  |  | Charge |  | as a % of |  | Charge |  | as a % of |
|  |  |  |  |  | Volume |  | Receivables |  | Volume |  | Receivables |
Cardmember Receivables: |  |  |  |  |  |  |  |  |
International Card Services |  | 0.15 | % | 1.0 | % | 0.15 | % | 1.0 | %
Global Commercial Services | 0.08 | % | 0.6 | % | 0.06 | % | 0.7 | %
The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. B ecause the Company's practice is to include uncollectible interest and/or fees as part of its total provision for losses, a net write-off rate includi ng principal, interest and/or fees is also presented. Refer to Note 5 for additional indicators, including external environmental factors, that management considers in its monthly evaluation process for reserves for losses. Impaired Loans and R eceivables Impaired loans and receivables are defined by GAAP as individual larger balance or homogeneous pools of smaller balance restructured loans and receivables for which it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan and receivable agreement. The Company considers impaired loans and receivables to include: (i) loans over 90 days past due still accruing interest, (ii) non-accrual loans, and (iii) loans and receivables modified as troubled debt restructuring s (TDR s). The Company may modify, through various company sponsored programs, cardmember loans and receivables in instances where the cardmember is experiencing financial difficulty to minimize losses while providing cardmembers with temporary or permanent financial relief. The Company has classified cardmember loans and receivables in these modification programs as TDRs. Such modifications to the loans and receivables may include (i) reducing the interest rate (as low as zero percent, in which case the loan is characterized as non-accrual in the Company's TDR disclosures), (ii) reducing the outstanding balance (in the event of a settlement), (iii) suspending delinquenc y fees until the cardmember exits the modification program, and (iv) placing the cardmember on a fixed payment plan not to exceed 60 months. Upon entering the modification program, the c ardmember's ability to make future purchases is either cancelled, or in certain cases suspended until the cardmember successfully exits the modification program. In accordance with the modification agreement with the cardmember, loans with modified terms will revert back to the original contractual terms (including contractual inter est rate) when the cardmember exit s the modification program, either (i) when all payments have been made in accordance with the modification agree ment or (ii) the cardmembe r defaults out of the modification program. In either case, the Company establishes a reserve for cardmember interest charges considered to be uncollectible. The performance of a loan or a receivable modified as a TDR is closely monitored to understand its impa ct on the Company's reserve for losses. Thou gh the ultimate success of modification programs remains uncertain, the Company believes the programs improve the cumulative loss performance of such loans and receivables. Reserves for cardmember loans and receivables modified as TDR s are determined by the difference between the cash flows expected to be received from the cardmember, taking into consideration the probability of subsequent defaults, discounted at the original effective interest rates, and the carrying value of the cardmember loan or receivable balance. The Company determines the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest r ate. All changes in the impairment measurement, including the compo nent due to the passage of time, are included in the provision for losses i n the Consolidated Statements of Income. The following table provide s additional information with respect to the Company's impaired cardmember loans and receivables, which are not significant for ICS and GCS, as of March 31, 2012 and December 31, 2011:
|  |  | Loans over |  |  |  |  |  |  |  |  |  |  |
|  |  | 90 Days |  |  |  |  |  | Loans & |  |  | Total |  |
|  |  | Past Due |  |  | Non- |  |  | Receivables |  |  | Impaired |  |  | Unpaid |  |  |
|  | & Accruing |  |  | Accrual |  |  | Modified |  |  | Loans & |  |  | Principal |  |  | Allowance
2012(Millions) |  |  | Interest | (a) |  | Loans | (b) |  | as a TDR | (c) |  | Receivables |  |  | Balance | (d) |  | for TDRs(e)
Cardmember Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 58 |  | $ | 473 |  | $ | 754 |  | $ | 1,285 |  | $ | 1,226 |  | $ | 180
International Card Services |  |  | 66 |  |  | 5 |  |  | 8 |  |  | 79 |  |  | 77 |  |  | 1
Cardmember Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | ― |  |  | ― |  |  | 145 |  |  | 145 |  |  | 137 |  |  | 110
Total |  | $ | 124 |  | $ | 478 |  | $ | 907 |  | $ | 1,509 |  | $ | 1,440 |  | $ | 291
|  |  | Loans over |  |  |  |  |  |  |  |  |  |  |
|  |  | 90 Days |  |  |  |  |  | Loans & |  |  | Total |  |
|  |  | Past Due |  |  | Non- |  |  | Receivables |  |  | Impaired |  |  | Unpaid |  |  |
|  | & Accruing |  |  | Accrual |  |  | Modified |  |  | Loans & |  |  | Principal |  |  | Allowance
2011(Millions) |  |  | Interest | (a) |  | Loans | (b) |  | as a TDR | (c) |  | Receivables |  |  | Balance | (d) | for TDRs(e)
Cardmember Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 64 |  | $ | 529 |  | $ | 736 |  | $ | 1,329 |  | $ | 1,268 |  | $ | 174
International Card Services |  |  | 67 |  |  | 6 |  |  | 8 |  |  | 81 |  |  | 80 |  |  | 2
Cardmember Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | ― |  |  | ― |  |  | 174 |  |  | 174 |  |  | 165 |  |  | 118
Total |  | $ | 131 |  | $ | 535 |  | $ | 918 |  | $ | 1,584 |  | $ | 1,513 |  | $ | 294
The Company's policy is generally to accrue inte rest through the date of write-off (at 180 days past due). The Company establishes reserves for interest that the Company believes will not be collected. Excludes loans modified as a TDR. Non-accrual loans not in modification programs include certain cardmember loans placed with outside collection agencies for which the Company has ceased accruing interest. The Company's policy is not to resume the accrual of interest on these loans. Payments received are applied against the recorded loan balance. Interest income is recognized on a cash basis for any payments received after the loan balance has been paid in full. Excludes loans modified as a TDR. The total loans and receivable s modified as a TDR include $411 million and $410 mil lion that are non-accrual and $4 million and $4 million that are past due 90 days and still accruing interest as of March 31, 2012 and December 31, 2011, respectively. Unpaid principal balance consists of cardmember charges billed and excludes other amounts charged directly by the Company such as interest and fees. Represents the reserve for losses for TDRs, which are evaluated separately fo r impairment. The Company record s a reserve for losses for all impaired loans. Refer to Cardmember Loans Evaluated Separately and Collectively for Impairment in Note 5 for further discussion of the reserve for losses on loans over 90 days past due and accruing interest and non-accrual loans, which are evaluated collectively for impairment. The following table provides information with respect to the Company's interest income recognized and average balances of impaired cardmember loans and receivables, which are not significant for ICS and GCS, during the three months ended March 31:
|  | 2012 |  | 2011
|  |  | Interest |  |  |  |  |  | Interest |  |  |
|  |  | Income |  |  | Average |  |  | Income |  |  | Average
(Millions) |  |  | Recognized |  |  | Balance |  |  | Recognized |  |  | Balance
Cardmember Loans: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 16 |  | $ | 1,307 |  | $ | 18 |  | $ | 2,036
International Card Services |  |  | 4 |  |  | 80 |  |  | 9 |  |  | 130
Cardmember Receivables: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | ― |  |  | 160 |  |  | ― |  |  | 118
Total |  | $ | 20 |  | $ | 1,547 |  | $ | 27 |  | $ | 2,284
Cardmember Loans and Receivables Modified as TDRs The following table provides additional information with respect to the cardmember loans and receivables modified as TDRs, which are not significant for ICS, during the three months ended March 31:
|  | 2012 |  | 2011
|  |  |  | Aggregated |  | Aggregated |  |  |  | Aggregated |  | Aggregated
|  |  |  | Pre- |  | Post- |  |  |  | Pre- |  | Post-
|  |  |  | Modification |  | Modification |  |  |  | Modification |  | Modification
|  | Number of |  | Outstanding |  | Outstanding |  | Number of |  | Outstanding |  | Outstanding
(Accounts in thousands, Dollars in millions) |  | Accounts |  | Balances(a) |  | Balances(a) |  | Accounts |  | Balances(a) |  | Balances(a)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services ― Cardmember Loans |  | 32 |  | $ | 229 |  | $ | 223 |  | 42 |  | $ | 320 |  | $ | 306
U.S. Card Services ― Cardmember Receivables |  | 11 |  |  | 128 |  |  | 125 |  | 12 |  |  | 93 |  |  | 90
Total(b) |  | 43 |  | $ | 357 |  | $ | 348 |  | 54 |  | $ | 413 |  | $ | 396
I ncludes principal and accrued interest. The difference between the pre- and post-modification outstanding balance s is attributable to amounts charged off for cardmember loans and receivables being resolved through the Company's short-term settlement programs. As described previously, the Company's cardmember loans and receivables modification programs may include (i) reducing the interest rate, (ii) reducing the outstanding balance, (i ii) suspending delinquency fees and (iv) placing the cardmember on a fixed payment plan not exceeding 60 months. Upon entering the modification program, the c ardmember's ability to make future purchases is either cancelled, or in certain cases suspended until the cardmember successfully exits the TDR program. The Company has evaluated the primary financial effects of the impact of the changes to an account upon modification as follows: Interest Rate Reduction: For the three months ended March 31, 2012 and 2011, the average interest rate reduction was 13 and 11 percentage points, respectively, which did not have a significant impact on interest and fees on loans in the Consolidated Statements of Income. The Company does not offer interest rate reduction programs for U.S. Card Services (USCS) cardmember r eceivables as these receivables are non-interest bearing. Outstanding Balance Reduction: The table above presents the financial effects to the Company as a result of reducing the outstanding balance for Short-Term Settlement Programs. The difference between the pre- and post-modification outstanding balances represents the amount that either has been written-off or will be written-off upon successful completion of the settlement program. Payment Term Extension: For the three months ended March 31, 2012 and 2011, the aver age payment term extension was approximately 15 months for USCS cardmember r eceivables. For USCS cardmember l oans, there have been no payment term extension s. The following table provides information for the three months ended March 31, 2012 and 2011, with respect to the cardmember loans and receivables modif ied as TDRs on which there was a default w ithin the previous 12 months of modification. A cardmember will default from a modific ation program after one and up to three consecutive missed payments, depending on the terms of the modification program. The defaulted ICS cardmember loan modifications were not significant.
|  | 2012 |  | 2011
|  |  |  |  |  | Aggregated |  |  |  |  |  | Aggregated
|  |  |  |  | Outstanding |  |  |  |  | Outstanding
|  |  | Number of |  |  | Balances |  |  | Number of |  |  | Balances
(Accounts in thousands, Dollars in millions) |  |  | Accounts |  | Upon Default(a) |  |  | Accounts |  | Upon Default(a)
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services ― Cardmember Loans |  |  | 9 |  | $ | 63 |  |  | 14 |  | $ | 109
U.S. Card Services ― Cardmember Receivables |  |  | 1 |  |  | 12 |  |  | 2 |  |  | 12
Total |  |  | 10 |  | $ | 75 |  |  | 16 |  | $ | 121
The outstanding balance include s principal and accrued interest.

X
- Details
Name: | axp_LoansNotesTradeAndOtherReceivablesDisclosureAbstract
Namespace Prefix: | axp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5162-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 4 -Section 08 -Paragraph k Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5074-111524 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration