XML 127 R19.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Debt | 12 Months Ended
--- | ---
Dec. 31, 2014
[DisclosureTextBlockAbstract] |
Debt Disclosure [Text Block] | NOTE 9 Debt Short-Term Borrowings The Company’s short-term borrowings outstanding, defined as borrowings with original maturities of less than one year, as of December 31 were as follows:
|  | 2014 |  |  | 2013 |
(Millions, except percentages) |  | Outstanding Balance |  | Year-End Stated Rate on Debt | (a) |  | Outstanding Balance |  | Year-End Stated Rate on Debt | (a)
Commercial paper |  | $ | 769 |  | 0.29 | % |  | $ | 200 |  | 0.19 | %
Other short-term borrowings(b)(c) |  |  | 2,711 |  | 0.81 |  |  |  | 4,821 |  | 1.08 |
Total |  | $ | 3,480 |  | 0.69 | % |  | $ | 5,021 |  | 1.04 | %
For floating-rate debt iss uances, the stated interest rates are weighted based on outstanding balances and floating rates in effect as of December 31, 2014 and 2013. Includes interest-bearing overdrafts with banks of $470 million and $489 million as of December 31, 2014 and 2013, respectively. In addition, balances include fully drawn secured borrowing facility (maturing on September 15, 2015, which was repaid on February 18, 2014), certain book overdrafts (i.e., primarily timi ng differences arising in the ordinary course of business), short-term borrowings from banks, as well as interest-bearing amounts due to merchants in accordance with merchant service agreements. The secured borrowing facility gives the Company the right to sell up to $2.0 billion face amount of eligible certificates issued from the Lending Trust. The Company paid $7.0 million and $7.2 million in fees to maintain the secured borrowing facility in 2014 and 2013, respect ively. Long-t erm Debt The Company’s long-term debt outstanding, defined as debt with original maturities of one year or greater, as of December 31 was as follows:
|  | 2014 |  |  | 2013 |
(Millions, except percentages) |  | Maturity Dates |  | Outstanding Balance | (a) | Year-End Stated Rate on Debt | (b) | Year-End Effective Interest Rate with Swaps | (b)(c) | Outstanding Balance | (a) | Year-End Stated Rate on Debt | (b) | Year-End Effective Interest Rate with Swaps | (b)(c)
American Express Company |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Parent Company only) |  |  |  |  |  |  |  |
Fixed Rate Senior Notes |  | 2016-2042 |  | $ | 7,535 |  | 5.15 | % | 4.20 | % | $ | 8,784 |  | 5.43 | % | 4.60 | %
Floating Rate Senior Notes |  | 2018 |  |  | 850 |  | 0.85 |  | ― |  |  | 850 |  | 0.84 |  | ― |
Subordinated Notes(d) |  | 2024-2036 |  |  | 1,350 |  | 5.39 |  | 4.42 |  |  | 749 |  | 6.80 |  | ― |
American Express Credit Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed Rate Senior Notes |  | 2015-2019 |  |  | 16,260 |  | 2.26 |  | 1.22 |  |  | 14,875 |  | 3.13 |  | 2.03 |
Floating Rate Senior Notes |  | 2015-2019 |  |  | 4,400 |  | 0.82 |  | ― |  |  | 2,855 |  | 1.14 |  | ― |
Borrowings under Bank Credit Facilities |  | 2016-2017 |  |  | 3,672 |  | 4.25 |  | ― |  |  | 4,012 |  | 4.18 |  | ― |
American Express Centurion Bank |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed Rate Senior Notes |  | 2015-2017 |  |  | 2,089 |  | 4.12 |  | 3.32 |  |  | 2,102 |  | 4.12 |  | 3.32 |
Floating Rate Senior Notes |  | 2015-2018 |  |  | 675 |  | 0.68 |  | ― |  |  | 675 |  | 0.67 |  | ― |
American Express Bank, FSB |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed Rate Senior Notes |  | 2017 |  |  | 999 |  | 6.00 |  | ― |  |  | 999 |  | 6.00 |  | ― |
Floating Rate Senior Notes |  | 2017 |  |  | 300 |  | 0.46 |  | ― |  |  | 300 |  | 0.47 |  | ― |
American Express Charge Trust II |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floating Rate Senior Notes |  | 2016-2018 |  |  | 3,700 |  | 0.41 |  | ― |  |  | 4,200 |  | 0.49 |  | ― |
Floating Rate Subordinated Notes |  | 2016-2018 |  |  | 87 |  | 0.80 |  | ― |  |  | 87 |  | 0.80 |  | ― |
American Express Lending Trust |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed Rate Senior Notes |  | 2015-2017 |  |  | 6,100 |  | 1.11 |  | ― |  |  | 2,600 |  | 0.72 |  | ― |
Floating Rate Senior Notes |  | 2015-2019 |  |  | 8,876 |  | 0.72 |  | ― |  |  | 10,685 |  | 0.81 |  | ― |
Fixed Rate Subordinated Notes |  | 2015-2017 |  |  | 300 |  | 1.08 |  | ― |  |  | 300 |  | 1.08 |  | ― |
Floating Rate Subordinated Notes |  | 2015-2019 |  |  | 488 |  | 0.73 |  | ― |  |  | 847 |  | 0.81 |  | ― |
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed Rate Instruments(e) |  | 2016-2033 |  |  | 143 |  | 3.09 |  | ― |  |  | 239 |  | 3.95 |  | ― |
Floating Rate Borrowings |  | 2015-2019 |  |  | 247 |  | 0.59 |  | ― | % |  | 276 |  | 0.62 |  | ― | %
Unamortized Underwriting Fees |  |  |  |  | (116) |  |  |  |  |  |  | (105) |  |  |  |  |
Total Long-Term Debt |  |  |  | $ | 57,955 |  | 2.34 | % |  |  | $ | 55,330 |  | 2.56 | % |  |
The outstanding balances include (i) unamortized discount and premium, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Under fair value hedge accounting, the outstanding balances on these fixed-rate notes are adjusted to reflect the impact of changes in fair value due to changes in interest rates. Refer to No te 14 for more details on the Company’s treatment of fair value hedges. For floating-rate debt issuances, the stated and effective interest rates are weighted based on outstanding balances and floating rates in effect as of December 31, 2014 and 2013. Effective interest rates are only presented when swaps are in place to hedge the underlying debt. For the $750 million of subordinated debentures issued in 2006 and outstanding as of December 31, 2014, the maturity date w ill automatically be extended to September 1, 2066, except in the case of either (i) a prior redemption or (ii) a default. Includes $31 million and $109 million as of December 31, 2014 and 2013, respectively, related to capitalized le ase transactions. As of December 31, 2014 and 2013, the Company had $750 million principal outstanding of Subordinated Debentures that accrue interest at an annual rate of 6.8 percent until September 1, 2016, and at an annual rate of three-month LIBOR plus 2.23 percent thereafter. At the Company’s option, these Subordinated Debentures are redeemable for cash after September 1, 2016 at 100 percent of the principal amount plus any accrued but unpai d interest. If the Company fails to achieve specified performance measures, it will be required to issue common shares and apply the net proceeds to make interest payments on these Subordinated Debentures. No dividends on the Company’s common or preferred shares could be paid until such interest payments are made. The Company would fail to meet these specific performance measures if (i) the Company’s tangible common equity is less than 4 percent of total adjusted assets for the most recent quarter or (ii) if the trailing two quarters’ consolidated net income is equal to or less than zero and tangible common equity as of the trigger determination date, and as of the end of the quarter end six months prior, has in each case declined by 10 pe rcent or more from tangible common equity as of the end of the quarter 18 months prior to the trigger determination date. The Company met the specified performance measures in 2014. The Company issued $600 million of 3.6 percent subord inated notes on December 5, 2014 that are senior in right of payment to the outstanding $750 million of Subordinated Debentures. Aggregate annual maturities on long-term debt obligations (based on final maturity dates) as of December 31, 2014 were as follows:
(Millions) |  |  | 2015 |  |  | 2016 |  |  | 2017 |  | 2018 |  | 2019 |  | Thereafter |  | Total
American Express Company (Parent Company only) |  | $ | ― |  | $ | 1,350 |  | $ | 1,500 |  | $ | 3,850 |  | $ | 641 |  | $ | 3,147 |  | $ | 10,488
American Express Credit Corporation |  |  | 5,227 |  |  | 7,057 |  |  | 6,532 |  |  | 1,295 |  |  | 4,150 |  |  | ― |  |  | 24,261
American Express Centurion Bank |  |  | 1,305 |  |  | ― |  |  | 1,300 |  |  | 125 |  |  | ― |  |  | 2 |  |  | 2,732
American Express Bank, FSB |  |  | ― |  |  | ― |  |  | 1,300 |  |  | ― |  |  | ― |  |  | ― |  |  | 1,300
American Express Charge Trust II |  |  | ― |  |  | 2,500 |  |  | ― |  |  | 1,287 |  |  | ― |  |  | ― |  |  | 3,787
American Express Lending Trust |  |  | 5,422 |  |  | 500 |  |  | 5,639 |  |  | 2,886 |  |  | 1,317 |  |  | ― |  |  | 15,764
Other |  |  | 125 |  |  | 145 |  |  | 83 |  |  | ― |  |  | 6 |  |  | 31 |  |  | 390
|  | $ | 12,079 |  | $ | 11,552 |  | $ | 16,354 |  | $ | 9,443 |  | $ | 6,114 |  | $ | 3,180 |  |  | 58,722
Unamortized Underwriting Fees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (116)
Unamortized Discount and Premium |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (932)
Impacts due to Fair Value Hedge Accounting |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 281
Total Long-Term Debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 57,955
As of December 31, 2014 and 2013, the Company maintained total bank lines of credit of $6.7 billion and $7.0 billion, respectively. Of the total credit lines, $3.0 billion were undrawn as of both December 31, 2014 and 2013. Undrawn amounts support commercial paper borrowings and contingent funding needs. The availability of these credit lines is subject to the Company’s compliance with certain financial covenants, principally, the maintenance by American Express Cred it Corporation (Credco) of a 1.25 ratio of combined earnings and fixed charges to fixed charges. As of December 31, 2014 and 2013, the Company was not in violation of any of its debt covenants. Additionally, the Company maintained a 3-year co mmitted, revolving, secured borrowing facility that gives the Company the right to sell up to $3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 15, 2016. As of December 31, 2014, $2.5 billi on was drawn on this facility. The Company paid $49.9 million and $50.2 million in fees to maintain these lines in 2014 and 2013, respectively. These committed facilities do not contain material adverse change clauses, which migh t otherwise preclude borrowing under the credit facilities, nor are they dependent on the Company’s credit rating. The Company paid total interest primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits of $1.7 billion, $2.0 billion and $2.2 billion in 2014, 2013 and 2012, respectively.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration