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Long-Term Debt
December 31, (Dollars in millions) 2003 2002
Year-End Year-End
Year-End Effective Year-End Effective
Notional Stated Interest Notional Stated Interest
Outstanding Amount of Rate on Rate with Maturity of Outstanding Amount of Rate on Rate with Maturity of
Balance Swaps Debt(a,b) Swaps(a,b) Swaps Balance Swaps Debt(a,b) Swaps(a,b) Swaps
Convertible Debentures
due December 1, 2033 $2,000 — 1.85% — — — — — — —
Senior Global Notes due
July 15, 2013 993 — 4.88% — — — — — — —
Fixed Rate Senior Notes due
May 16, 2008 998 — 3.00% — — — — — — —
Notes due September 12, 2006 1,002 — 5.50% — — $1,003 — 5.50% — —
Floating Rate Notes due
June 15, 2006 1,000 — 1.43% — — 1,000 — 1.43% — —
Floating Rate Medium-Term
Extendible Notes due
February 14, 2005(c) 2,000 — 1.20% — — —— — — —
Floating Rate Extendible Notes
due January 21, 2005(d) 1,000 — 1.17% — — —— — — —
Fixed Rate Medium-Term
Notes due 2005 258 $ 250 4.25% 1.24% 2005 261 $ 250 4.25% 1.32% 2005
Floating Rate Medium-Term
Notes due 2003 – 2006 5,691 1,300 1.24% 1.76% Various 6,550 6,550 6.50% 5.92% Various
Fixed Senior Notes due
2003 – 2011(e) 2,712 400 5.91% 4.98% Various 2,655 100 5.88% 5.62% 2005
Floating Senior Notes due
2003 – 2011(e) 2,307 207 1.44% 1.83% 2004 1,840 — 1.53% — —
Fixed Rate Notes due
2003 – 2011(e) 210 — 7.48% — — 142 — 6.73% — —
Floating Rate Notes due
2003 – 2008 263 213 5.05% 3.82% Various 551 232 4.10% 2.98% Various
Subordinated Fixed Rate Notes
due 2003 – 2004 17 — 7.95% — — 153 — 6.90% — —
Subordinated Floating Rate
Notes due 2004 – 2006 203 — 1.71% — — 203 — 1.71% — —
Notes due May 15, 2003 — — — — — 1,000 — 5.90% — —
Floating Rate Notes due
September 15, 2003 — — — — — 950 — 1.53% — —
Total $20,654 $ 2,370 2.56% $16,308 $ 7,132 4.93%
(a) For floating rate debt issuances, the stated and effective interest rates were based on the respective rates at December 31, 2003 and 2002; these rates are not an indication of future
interest rates.
(b) Weighted average rates were determined where appropriate.
(c) These issuances are subject to extension by the holders through March 5, 2008.
(d) These issuances are subject to extension by the holders through June 20, 2008.
(e) As a result of the December 31, 2003 adoption of FIN 46, these balances include a combined $325 million of debt related to a consolidated CDO. This debt is non-recourse to the Com-
pany and will be extinguished from the cash flows of the investments held within the portfolio of the CDO.
In November 2003, the Company privately placed $2 billion in Convertible Senior Debentures due 2033 (the Debentures)
which are unsecured and unsubordinated obligations of the Company. The Debentures are convertible under certain con-
ditions into shares of the Company’s common stock, at a base conversion price of $69.41 or 28.8 million common shares. If
at the time of conversion, the stock price exceeds the base conversion price, the holder will receive additional shares based
on a formula but in no event will the number of common shares issued exceed 45.5 million.
The Debentures accrue interest at an annual rate of 1.85%, payable semi-annually until December 1, 2006, after which inter-
est will not be paid unless the Company elects to do so in connection with a remarketing of the Debentures. If interest is
(p.91_axp_ notes to consolidated financial statements)