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AMERICAN EXPRESS COMPANY
2014 FINANCIAL REVIEW
CONTRACTUAL OBLIGATIONS
The table below identifies transactions that represent our contractually committed future obligations. Purchase obligations include our
agreements to purchase goods and services that are enforceable and legally binding and that specify significant terms, including: fixed or
minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.
TABLE 27: COMMITTED FUTURE OBLIGATIONS BY YEAR
Payments due by year(a)
(Millions) 2015 2016-2017 2018-2019
2020 and
thereafter Total
Long-term debt $ 12,079 $ 27,906 $ 15,557 $ 3,180 $ 58,722
Interest payments on long-term debt(b) 1,032 1,450 390 1,301 4,173
Certificates of deposit 1,765 3,627 2,784 16 8,192
Other long-term liabilities(c) 207 88 17 20 332
Operating lease obligations 189 305 220 921 1,635
Purchase obligations(d) 364 122 51 — 537
Total $ 15,636 $ 33,498 $ 19,019 $ 5,438 $ 73,591
(a) The table above excludes approximately $0.9 billion of tax liabilities related to the uncertainty in income taxes as inherent complexities and the number of tax
years currently open for examination in multiple jurisdictions do not permit reasonable estimates of payments, if any, to be made over a range of years.
(b) Estimated interest payments were calculated using the effective interest rate in place as of December 31, 2014, and includes the effect of existing interest rate
swaps. Actual cash flows may differ from estimated payments.
(c) As of December 31, 2014, there were no minimum required contributions, and no contributions are currently planned, for the U.S. American Express Retirement
Plan. For the U.S. American Express Retirement Restoration Plan and non-U.S. defined benefit pension and postretirement benefit plans, contributions in 2015
are anticipated to be approximately $60 million, and this amount has been included within other long-term liabilities. Remaining obligations under defined
benefit pension and postretirement benefit plans aggregating $707 million have not been included in the table above as the timing of such obligations is not
determinable. Additionally, other long-term liabilities do not include $6.5 billion of Membership Rewards liabilities, which are not considered long-term liabilities
as Card Members in good standing can redeem points immediately, without restrictions, and because the timing of point redemption is not determinable.
(d) The purchase obligation amounts represent either the early termination fees or non-cancelable minimum contractual obligations, as applicable, by period under
contracts that were in effect as of December 31, 2014.
We also have obligations to make payments under contractual agreements with certain co-brand partners. We expect to fully satisfy these
obligations over the remaining term of these agreements, which range from 2015 to 2022, as part of the ongoing operations of our business.
The obligations under such arrangements were approximately $1.0 billion as of December 31, 2014.
In addition to the contractual obligations noted above, we have off-balance sheet arrangements that include guarantees and other off-
balance sheet arrangements.
GUARANTEES
Our principal guarantees are associated with Card Member services to enhance the value of owning an American Express card. As of
December 31, 2014, we had guarantees totaling approximately $45 billion related to Card Member protection plans, as well as other
guarantees in the ordinary course of business. Refer to Note 16 to the Consolidated Financial Statements for further discussion regarding our
guarantees.
CERTAIN OTHER OFF-BALANCE SHEET ARRANGEMENTS
As of December 31, 2014, we had approximately $278 billion of unused credit available to Card Members. Total unused credit available to
Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn.
Our charge card products generally have no pre-set limit, and therefore are not included in unused credit available to Card Members.
To mitigate counterparty credit risk related to derivatives, the Company accepted non-cash collateral in the form of security interests in
U.S. Treasury securities from its derivatives counterparties with a fair value of $91 million and nil as of December 31, 2014 and 2013,
respectively, none of which was sold or repledged.
Refer to Note 13 to the Consolidated Financial Statements for discussion regarding our other off-balance sheet arrangements.
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