American Express 2009 Annual Report Download - page 97

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
LONG-TERM 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:
(Millions, except percentages) 2009 2008
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 2011–2038 $ 9,493 6.83% 6.01% $ 7,177 6.29% 5.53%
Floating Rate Senior Notes —— — 5 3.75% —
Subordinated Debentures(d) 2036 750 6.80% — 750 6.80% —
American Express Travel Related Services
Company, Inc.
Fixed Rate Senior Notes 2011 700 5.25% — 1,500 4.76% —
Floating Rate Senior Notes 2011 500 0.44% 5.63% 500 2.10% 5.63%
American Express Credit Corporation
Fixed Rate Senior Notes 2010–2015 11,478 5.58% 3.26% 9,683 5.60% 3.64%
Floating Rate Senior Notes 2010–2013 4,761 1.30% — 7,807 1.77% 2.85%
Borrowings under Bank Credit Facilities 2012 3,232 4.23% 4.52% 2,506 4.56% 4.88%
American Express Centurion Bank
Fixed Rate Senior Notes 2010–2017 2,726 5.69% 2.86% 3,287 5.48% 2.59%
Floating Rate Senior Notes 2010–2012 1,975 0.31% — 6,300 1.15% 1.44%
American Express Bank, FSB
Fixed Rate Senior Notes 2011–2017 7,137 4.40% 2.70% 7,182 4.40% 2.82%
Floating Rate Senior Notes 2010–2017 4,502 0.80% 1.22% 8,220 1.59% 1.98%
American Express Receivables
Financing Corporation V LLC
Fixed Rate Senior Notes 2010 1,000 4.02% — 1,000 4.02% —
Floating Rate Senior Notes 2010–2012 3,826 0.57% — 3,826 1.69% —
Floating Rate Subordinated Notes 2010–2012 144 0.67% — 144 1.63% —
Other
Fixed Rate Instruments(e) 2010–2014 114 4.98% — 154 6.79% —
Total $52,338 4.11% $60,041 3.63%
(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 are the associated swaps, which are reported as derivative assets or
liabilities. In 2009 and 2008, the impact on long-term debt due to fair value hedge accounting was $0.6 billion and $1.0 billion, respectively.
Refer to Note 12 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 as of December 31, 2009 and
2008, 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.
(d) The maturity date will automatically be extended to September 1, 2066, except in the case of either (i) a prior redemption or (ii) a default.
See further discussion below.
(e) Includes $87 million and $89 million as of December 31, 2009 and 2008, respectively, related to a sale-leaseback transaction completed in
2004.
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