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Summary of Significant Accounting Policies | 6 Months Ended
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Jun. 30, 2016
Disclosure Text Block [Abstract] |
Basis of Presentation | 1. Basis of Presentation The Company American Express Company (the Company) is a global services company that provides customers with access to products, insights and experiences that enrich lives and build business success. The Company’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Business Travel (GBT JV). The Company’s various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold throu gh various channels, including direct mail, online applications, in-house and third-party sales forces and direct response advertising. Effective for the first quarter of 2016, the Company realigned its segment presentation to reflect the organizational c hanges announced during the fourth quarter of 2015. Prior periods have been restated to conform to the new reportable operating segments, which are as follows: U.S. Consumer Services (USCS), including the proprietary U.S. Consumer Card Services business an d travel services in the United States; International Consumer and Network Services (ICNS), including the proprietary International Consumer Card Services business, Global Network Services (GNS) business and travel services outside the United States; Globa l Commercial Services (GCS), including the proprietary Global Corporate Payments (GCP) business, small business services businesses in the United States and internationally (collectively, Global Small Business Services), merchant financing products and for eign exchange services operations; and Global Merchant Services (GMS), including the Global Merchant Services business and global loyalty coalition businesses. Corporate functions and certain other businesses and operations are included in Corporate & Other. The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial S tatements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the Annual Report). If not mate rially different, certain footnote disclosures included therein 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, w hich 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 entir e year. The preparation of Consolidated Financial S tatements 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 asset s, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ. Certain reclassifications of prior period amounts have bee n made to conform to the current period presentation. During 2016, the Company determined that in the Consolidated Statements of Cash Flows for the comparative periods ended June 30, 2015, September 30, 2015 and December 31, 2015, certain activities relate d to long-term debt repayments were misclassified between financing activities and operating activities. There is no impact to the Consolidated Statements of Income or Consolidated Balance Sheets. The Company has evaluated the effects of these misclassific ations and concluded that none are material to any of its previously issued quarterly or annual Consolidated Financial Statements. Nevertheless, the Company has elected to revise prospectively the comparative periods mentioned above. For the six months en ded June 30, 2015, this revision resulted in a $66 million decrease to both Net cash used in financing activities and Net cash provided by operating activities. In addition, travel commissions and fees, which were separately disclosed on the Consolidated S tatements of Income historically, are now included within Other fees and commissions. 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. The Company does not intend to adopt the new standar d early and 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. In January 2016, the FASB issued new accounting guidance on th e recognition and measurement of financial assets and fin ancial liabilities. The guidance, which is effective January 1, 2018, makes targeted changes to current GAAP, specifically to the classification and measurement of equity securities, and to certain d isclosure requirements associated with the fair value of financial instr uments. The Company continues to e valuate the impact this guidance will have on its financial position, results of operations and cash flows, among other items. In February 2016, the F ASB issued new accounting guidance on leases. The guidance, which is effective January 1, 2019, with early adoption permitted, requires virtually all leases to be recognized on the Consolidated Balance Sheets. The Company continues to evaluate the impact t his guidance will have on its financial position, results of operations and cash flows, among other items. In March 2016, the FASB issued new accounting guidance on employee share-based payments. The guidance, which is effective January 1, 2017, with early adoption permitted, simplifies various aspects of the accounting for share-based payment transactions, including the income tax consequences, accounting for award forfeitures, and classification on the Consolidated S tatement s of C ash Flows. The Company co ntinues to evaluate the impact this guidance will have on its financial position, results of operations and cash flows, among other items. In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, whi ch is effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which is based on expected losses, and differs significantly fr om the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information and will likely result in earlier recognition of credit reserves. The Company is currently evaluating the impact the new guidance will have on its financial position, result s of operations and cash flows; h owever, it is expec ted that the new CECL model will alter the assumptions used in calculating credit losses on Card Member loans and receivables, among other financial instruments, and may result in material changes to the Company’s credit reserve s.

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