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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
The following table provides information about the Company’s investment securities with gross unrealized losses and the length
of time that individual securities have been in a continuous unrealized loss position as of December 31:
(Millions) 2009 2008
Less than 12 months 12 months or more Less than 12 months 12 months or more
Description of Securities
Estimated
Fair Value
Gross
Unrealized
Losses
Estimated
Fair Value
Gross
Unrealized
Losses
Estimated
Fair Value
Gross
Unrealized
Losses
Estimated
Fair Value
Gross
Unrealized
Losses
State and municipal obligations $ 837 $ (25) $ 2,074 $ (233) $ 2,515 $ (326) $ 2,037 $ (708)
U.S. Government agency
obligations 249 (1) — — ————
Mortgage-backed securities 120 (2) 4 — ————
Retained subordinated
securities — — 75 (1) 744 (584) — —
Corporate debt securities 102 (1) 38 (11) 35 (1) 99 (12)
Foreign government bonds and
obligations ————27 (4) — —
Total $ 1,308 $ (29) $ 2,191 $ (245) $ 3,321 $ (915) $ 2,136 $ (720)
The following table summarizes the unrealized losses of temporary impairments by ratio of fair value to amortized cost as of
December 31:
(Dollars in millions) Less than 12 months 12 months or more Total
Ratio of Fair Value to
Amortized Cost
Number of
Securities
Estimated
Fair Value
Gross
Unrealized
Losses
Number of
Securities
Estimated
Fair Value
Gross
Unrealized
Losses
Number of
Securities
Estimated
Fair Value
Gross
Unrealized
Losses
2009:
90%–100% 155 $ 1,289 $ (25) 235 $ 1,414 $ (87) 390 $ 2,703 $ (112)
Less than 90% 2 19 (4) 83 777 (158) 85 796 (162)
Total as of
December 31, 2009 157 $ 1,308 $ (29) 318 $ 2,191 $ (245) 475 $ 3,499 $ (274)
2008:
90%–100% 327 $ 1,289 $ (73) 37 $ 111 $ (7) 364 $ 1,400 $ (80)
Less than 90% 321 2,032 (842) 310 2,025 (713) 631 4,057 (1,555)
Total as of
December 31, 2008 648 $ 3,321 $ (915) 347 $ 2,136 $ (720) 995 $ 5,457 $ (1,635)
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