American Express 2014 Annual Report Download - page 106

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT OTHER THAN FAIR VALUE
ThefollowingtabledisclosestheestimatedfairvaluefortheCompany’sfinancial assets and financial liabilities that are not required to be
carried at fair value on a recurring basis, as of December 31, 2014 and 2013:
Carrying
Value
Corresponding Fair Value Amount
2014 (Billions) Total Level 1 Level 2 Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents $22$22$ 21$ 1
(a) $—
Other financial assets(b) 48 48 — 48 —
Financial assets carried at other than fair value
Loans, net 70 71(c) —— 71
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value 61 61 — 61 —
Financial liabilities carried at other than fair value
Certificates of deposit(d) 88—8 —
Long-term debt
$58$60
(c) $—$60
$—
—
Carrying
Value
Corresponding Fair Value Amount
2013 (Billions) Total Level 1 Level 2 Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents $ 19 $ 19 $ 17 $ 2(a) $—
Other financial assets(b) 48 48 — 48 —
Financial assets carried at other than fair value
Loans, net 67 67(c) —— 67
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value 60 60 — 60 —
Financial liabilities carried at other than fair value
Certificates of deposit(d) 78—8 —
Long-term debt $ 55 $ 58(c) $—$58$ —
(a) Reflects time deposits.
(b) Includes accounts receivable (including fair values of Card Member receivables of $7.0 billion and $7.3 billion held by consolidated VIEs as of December 31, 2014
and 2013, respectively), restricted cash and other miscellaneous assets.
(c) Includes fair values of loans of $29.9 billion and $31.0 billion, and long-term debt of $19.5 billion and $18.8 billion, held by consolidated VIEs as of December 31,
2014 and 2013, respectively.
(d) Presented as a component of customer deposits on the Consolidated Balance Sheets.
The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2014,
and require management judgment. These figures may not be indicative of future fair values. The fair value of the Company cannot be
reliably estimated by aggregating the amounts presented.
106