American Express 2008 Annual Report Download - page 95

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notes to consolidated financial statements
american express company
93
long-term debt
The Company’s outstanding long-term debt with original maturities of one year or greater, at December 31, was as follows:
(Millions, except percentages) 2008 2007
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 and Floating Rate Senior Notes 2009–2038 $ 7,182 6.29% 5.53% $ 5,996 5.40% —
Subordinated Debentures(d) 2036 750 6.80% — 750 6.80% —
American Express Travel Related
Services Company, Inc.
Fixed and Floating Rate Senior Notes 2009–2011 2,000 4.09% 4.98% 2,000 4.93% 4.98%
American Express Credit
Corporation
Fixed and Floating Rate Senior Notes 2009–2017 17,490 3.85% 3.28% 19,118 4.99% 4.98%
Borrowings under Bank Credit Facilities 2012 2,506 4.56% 4.88% 3,146 7.34% 7.09%
American Express Centurion Bank
Fixed and Floating Rate Senior Notes 2009–2017 9,587 2.58% 1.97% 11,099 5.25% 5.14%
American Express Bank, FSB
Fixed and Floating Rate Senior Notes 2009–2017 15,402 2.88% 2.28% 9,909 5.23% 5.13%
American Express Receivables
Financing Corporation V LLC
Fixed and Floating Rate Senior Notes 2010–2012 4,826 2.17% — 2,976 5.19% —
Floating Rate Subordinated Notes 2010–2012 144 1.63% — 144 5.67% —
Other
Fixed and Floating Rate Notes(e) 2009–2014 154 6.79% — 147 6.53% —
Total $60,041 3.63% $55,285 5.30%
(a) The outstanding balances reflect the impact of fair value hedge accounting whereby certain fixed rate notes have been swapped to floating rate through the use
of interest rate swaps and are marked to market, as is the associated swap that is reported as a derivative asset or liability. In 2008 and 2007, the effect of these
adjustments was $1.0 billion and $0.1 billion, respectively. Refer to Note 14 for more details on the Company’s treatment of fair value hedges.
(b) For floating rate debt issuances, the stated and effective interest rates are based on the floating rates in effect at December 31, 2008 and 2007, respectively. These
rates may not be indicative of future interest rates.
(c) Effective interest rates are only presented when swaps are in place to hedge the underlying debt at the respective year-end.
(d) The maturity date will automatically be extended to September 1, 2066, except in the case of (a) a prior redemption or (b) a default related to the debentures.
(e) Includes $89 million and $90 million as of December 31, 2008 and 2007, respectively, related to a sale-leaseback transaction completed in 2004.