American Express 2011 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2011 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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:
2011 2010
(Millions, except percentages)
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 2013-2038 $ 9,364 6.90% 6.06% $ 9,604 6.83% 6.02%
Subordinated Debentures(d) 2036 749 6.80% – 745 6.80% –
American Express Travel
Related Services Company Inc.
Fixed Rate Senior Notes ––– 700 5.25% –
Floating Rate Senior Notes ––– 500 0.47% 5.63%
American Express Credit Corporation
Fixed Rate Senior Notes 2012-2016 14,188 4.78% 2.80% 12,406 5.15% 3.07%
Floating Rate Senior Notes 2012-2014 2,444 1.24% – 2,480 1.51% –
Borrowings under Bank Credit Facilities 2014-2016 4,579 6.38% 6.27% 4,118 5.33% 5.38%
American Express Centurion Bank
Fixed Rate Senior Notes 2012-2017 2,149 5.83% 3.32% 2,166 5.83% 3.31%
Floating Rate Senior Notes 2012 400 0.43% – 400 0.41% –
American Express Bank, FSB
Fixed Rate Senior Notes 2012-2017 3,581 5.65% 3.11% 7,168 4.40% 2.72%
Floating Rate Senior Notes 2012-2017 1,100 0.47% – 2,750 0.92% –
American Express Charge Trust
Floating Rate Senior Notes 2012-2013 4,488 0.52% – 3,988 0.51% –
Floating Rate Subordinated Notes 2012 72 0.75% – 72 0.74% –
American Express Lending Trust
Fixed Rate Senior Notes ––– 437 5.35% –
Floating Rate Senior Notes 2012-2018 15,065 0.95% – 17,516 0.89% –
Fixed Rate Subordinated Notes ––– 63 5.61% –
Floating Rate Subordinated Notes 2012-2018 1,245 0.85% – 1,275 0.66% –
Other
Fixed Rate Instruments(e) 2014-2022 123 5.74% – 141 5.64% –
Floating Rate Borrowings 2014 129 0.66% –
Unamortized Underwriting Fees (106) (113)
Total Long-Term Debt $ 59,570 3.69% $ 66,416 3.48%
(a) The outstanding balances include (i) unamortized discount and premium, (ii) the impact of movements in exchange rates on foreign currency denominated debt 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.
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, 2011 and 2010, 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 on
the following page.
(e) Includes $123 million and $132 million as of December 31, 2011 and 2010, respectively, related to capitalized lease transactions.
78