American Express 2010 Annual Report Download - page 92

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:
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)
(Millions, except percentages)
2010 2009
American Express Company (Parent
Company only)
Fixed Rate Senior Notes 2011-2038 $ 9,604 6.83% 6.02% $ 9,499 6.83% 6.01%
Subordinated Debentures
(d)
2036 745 6.80% — 744 6.80% —
American Express Travel Related Services
Company Inc.
Fixed Rate Senior Notes 2011 700 5.25% — 700 5.25% —
Floating Rate Senior Notes 2011 500 0.47% 5.63% 500 0.44% 5.63%
American Express Credit Corporation
Fixed Rate Senior Notes 2011-2015 12,406 5.15% 3.07% 11,478 5.58% 3.26%
Floating Rate Senior Notes 2011-2013 2,480 1.51% — 4,761 1.30% —
Borrowings under Bank Credit Facilities 2012 4,118 5.33% 5.38% 3,232 4.23% 4.52%
American Express Centurion Bank
Fixed Rate Senior Notes 2012-2017 2,166 5.83% 3.31% 2,726 5.69% 2.86%
Floating Rate Senior Notes 2012 400 0.41% — 1,975 0.31% —
American Express Bank, FSB
Fixed Rate Senior Notes 2011-2017 7,168 4.40% 2.72% 7,137 4.40% 2.70%
Floating Rate Senior Notes 2011-2017 2,750 0.92% — 4,502 0.80% 1.22%
American Express Charge Trust
Fixed Rate Senior Notes — ———1,000 4.02% —
Floating Rate Senior Notes
(e)
2012-2014 3,988 0.51% — 3,826 0.57% —
Floating Rate Subordinated Notes 2012 72 0.74% — 144 0.67% —
American Express Lending Trust
(f)
Fixed Rate Senior Notes 2011 437 5.35% —
Floating Rate Senior Notes 2011-2018 17,516 0.89% —
Fixed Rate Subordinated Notes 2011 63 5.61% —
Floating Rate Subordinated Notes 2011-2015 1,275 0.66% —
Other
Fixed Rate Instruments
(g)
2011-2022 141 5.64% — 114 4.98%
Unamortized Underwriting Fees (113) —
Total Long-Term Debt $ 66,416 3.48% $ 52,338 4.11%
(a) The outstanding balances include (i) unamortized discounts (ii) the impact of movements in exchange rates on foreign currency denominated debt ($0.6 billion and
$1.2 billion as of December 31, 2010 and 2009, respectively), and (iii) the impact of fair value hedge accounting on certain fixed rate notes that have been swapped to
floating rate through the use of interest rate swaps. Under fair value hedge accounting, the outstanding balances on these fixed rate notes are adjusted to reflect the
impact of changes in fair value due to changes in interest rates. As of December 31, 2010 and 2009, the impact on long-term debt due to fair value hedge accounting was
an increase of $0.8 billion and $0.6 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, 2010 and 2009, 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) The conduit facility expires on December 15, 2013; the Company is required to pay down the balance one month after the expiry of the facility.
(f) Upon adoption of new GAAP effective January 1, 2010, the Lending Trust was consolidated. The December 31, 2009 non-consolidated outstanding balance was
$25.0 billion and the year-end stated rate was 0.87 percent.
(g) Includes $132 million and $87 million as of December 31, 2010 and 2009, respectively, related to lease transactions.
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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS