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ANNUAL REPORT
AMERICAN EXPRESS COMPANY
2015

Table of contents

  • Page 1
    2015 AMERICAN EXPRESS COMPANY ANNUAL REPORT

  • Page 2
    ... our underlying business shows continued growth. Adjusted revenues rose 4 percent, excluding foreign exchange, a 2014 gain on the sale of our investment in Concur Technologies and revenues from business travel, which now operates as a joint venture.1 Spending on American Express cards rose 6 percent...

  • Page 3
    ... has increased. • Pressure on merchant fees - This is coming from several fronts: regulation in key international markets, intensifying competition, and a lowering of our average discount rate as we expand card acceptance among smaller merchants. • Heightened competition for customers - As banks...

  • Page 4
    ... 12 percent last year.2 • We expanded our merchant network, adding more than 1.2 million new merchants globally in 2015. With our OptBlue program, we're continuing our efforts to move toward parity coverage with the other card networks in the U.S. 3 AMERICAN EXPRESS COMPANY | ANNUAL REPORT 2015

  • Page 5
    ... includes total operating expenses plus marketing and promotion costs, by $1 billion by the end of 2017. This will involve structural changes to streamline the organization and reengineer key processes that now exist in multiple parts of the company to increase efficiency. I've assigned our Vice...

  • Page 6
    ... new Card Members and merchants; our ability to broaden relationships with existing customers; the leverage we can gain from operating and investing more efficiently; and the power and potential of our closed-loop model to create additional value for customers and partners. 5 AMERICAN EXPRESS...

  • Page 7
    ..., world-class customer service, and our proven ability to innovate in digital commerce. Our integrated payments model runs about $1 trillion in spending through our closed loop each year. That rich data enables us to create value for Card Members and build business for our merchant partners. This...

  • Page 8
    ... American Express Company February 29, 2016 Footnotes: 1 Total revenues net of interest expense, adjusted for FX and excluding Business Travel revenues from the first half of 2014 and the gain on the sale of our investment in Concur Technologies in the fourth quarter 2014, and related growth rate...

  • Page 9
    ... closing sale price as reported on the New York Stock Exchange. As of February 10, 2016, there were 964,045,452 common shares of the registrant outstanding. DOCUMENTS INCORPORATED BY REFERENCE Part III: Portions of Registrant's Proxy Statement to be filed with the Securities and Exchange Commission...

  • Page 10
    ... ...U.S. Card Services ...International Card Services ...Global Commercial Services ...Global Network & Merchant Services ...Corporate & Other ...Supervision and Regulation ...Foreign Operations ...Segment Information and Classes of Similar Services ...Executive Officers of the Company ...Employees...

  • Page 11
    ... ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and Related Transactions, and Director Independence ...Principal Accounting Fees and Services ...PART IV Exhibits, Financial Statement Schedules...

  • Page 12
    ... services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. We were founded in 1850 as a joint stock association. We were incorporated in 1965 as a New York corporation. American Express Company and its principal operating...

  • Page 13
    ... third-party sales forces and direct response advertising. Business travel-related services are offered through our non-consolidated joint venture, American Express Global Business Travel (the "GBT JV"). Our general-purpose card network, card-issuing and merchant-acquiring and processing businesses...

  • Page 14
    ... and offer deposit products directly to consumers through American Express Personal Savings. The proprietary card business offers a broad set of card products, rewards and services to acquire and retain high-spending, creditworthy Card Members. Core elements of our strategy are: • Designing card...

  • Page 15
    ... consumer financial laws Types of Cards Issued Card Marketing Methods Consumer charge and credit cards Primarily direct mail, online and other remote marketing channels Deposits obtained only through third-party brokerage channels Well capitalized American Express Bank Federal savings bank Regulated...

  • Page 16
    ... different payment terms, interest rate and fee structures. Revolving credit card products provide Card Members with the flexibility to pay their bill in full each month or carry a monthly balance on their cards to finance the purchase of goods or services. Along with charge cards and cobrand cards...

  • Page 17
    ... Rental Loss and Damage Insurance Online Year-End Summary Extended Warranty Advance Ticket Sales Purchase Protection Exclusive Access to Card Member Events Return Protection OPEN In addition to our U.S. consumer card business, through American Express Bank we are also a leading payment card...

  • Page 18
    ... variety of financial payment products including cash, foreign currency, checks, debit, prepaid and ATM cards, bank accounts, virtual currencies, alternative financial services such as check cashing and money orders, store-branded gift cards, other network-branded credit and charge cards and other...

  • Page 19
    ... Bank and American Express Bank finance their charge card receivables and credit card loans, in part, through the issuance of medium-term notes and by accepting consumer deposits in the United States. TRS, Centurion Bank and American Express Bank also fund receivables and loans through asset...

  • Page 20
    ..., consumer travel websites available in 14 countries and the U.S. American Express Travel Representative Network (which consists of independently owned travel agencies that license the American Express Travel brand). Additional services are offered to Gold, Platinum and Centurion Card Members when...

  • Page 21
    ... point of sale in select retail locations in store and online. We also offer the opportunity to pay for travel services by allowing International Consumer Card Members to use their Membership Rewards points to pay for their travel purchases and other charges in 19 countries outside the United States...

  • Page 22
    ... corporate purchasing cards in 25 countries. vPayment, which offers companies single-use virtual account numbers, allows corporate clients to make payments with enhanced controls, data capture and reconciliation capabilities. Charges are authorized for a specified amount during a designated time...

  • Page 23
    ... certain state laws that regulate fees and charges on our products. In the United States, we are subject to certain applicable privacy, data protection and information security laws, including certain requirements related to breach notification. Such laws also govern the collection, use, sharing and...

  • Page 24
    ... merchant-acquiring arrangements with banks and other institutions in 141 countries. Since 1999, cards-in-force issued by GNS partners have grown at a compound annual growth rate of approximately 20 percent, totaling over 47 million cards at the end of 2015. Outside the United States, approximately...

  • Page 25
    ...new merchants to accept cards on the American Express network and issues local and U.S. dollar-denominated currency cards that carry our logo. In a JV arrangement, the JV bears the credit and fraud risk for the American Express cards it issues and is responsible for the operating and marketing costs...

  • Page 26
    ... accept American Express cards with total general-purpose credit and charge spending at all merchants. Discount Revenue We earn "discount" revenue from fees charged to merchants for accepting our cards as payment for goods or services sold. The merchant discount, or discount rate, is a fee charged...

  • Page 27
    ..., data protection and information security laws, other applicable legal requirements and our internal policies. We also work closely with our card-issuing and merchant-acquiring partners to maintain the information that supports key elements of this closed loop, providing value to Card Members and...

  • Page 28
    ... models actively seek to switch customers to payment through direct debits from bank accounts, and existing debit networks also continue to expand both on- and off-line and are making efforts to develop online PIN functionality, which could further reduce the relative use of charge and credit cards...

  • Page 29
    ... for other sources of revenue from consumers such as higher annual card fees or interest charges, as well as to reduce costs by scaling back or eliminating rewards, services or benefits to cardholders and merchants. In certain countries where regulations have required our competitors to lower their...

  • Page 30
    ... of new direct debit and credit transfer systems, which we can use for collecting and initiating payments with Card Members, merchants and other counterparties. Compliance with the PSD, SEPA and related requirements has involved significant costs to implement and maintain. In addition, the Consumer...

  • Page 31
    ... our prepaid services business (which offers stored value/prepaid products, such as American Express Serve®, Bluebird®, the American Express® Gift Card and Travelers Cheques), LoyaltyEdge® and our foreign exchange services. Our support functions, including servicing, credit and technology, are...

  • Page 32
    ... Card Services," "International Card Services - Regulation," "Global Commercial Services - Regulation" and "Global Network & Merchant Services - Regulation" for a discussion of certain regulatory considerations specifically applicable to our business segments. Financial Holding Company and Bank...

  • Page 33
    ... stress tests in 2015 and we publish the stress test results for the Company, Centurion Bank and American Express Bank on our Investor Relations website. Capital Planning Bank holding companies with $50 billion or more in total consolidated assets, including the Company, are required to develop and...

  • Page 34
    ... on our growth, activities or operations, or may ultimately be required to divest certain assets or operations to facilitate an orderly resolution. Capital Adequacy The Company, Centurion Bank and American Express Bank are required to comply with the applicable capital adequacy rules established by...

  • Page 35
    ...-based capital requirements. The portions of the New Capital Rules implementing the standardized approach became effective January 1, 2015. During 2014, we began reporting our capital adequacy ratios on a parallel basis to federal banking regulators using both risk-weighted assets calculated under...

  • Page 36
    ...funding ratio ("NSFR"), which is designed to promote more medium- and long-term funding of the assets and activities of banking entities over a one-year time horizon. These requirements will incent banking entities to increase their holdings of cash, U.S. Treasury securities and other sovereign debt...

  • Page 37
    ... deposit programs, see "Deposit Programs" under "U.S. Card Services - Consumer and Small Business Services." The FDIA generally prohibits an FDIC-insured depository institution from making any capital distribution (including payment of dividends) or paying any management fee to its holding company...

  • Page 38
    ... acquisition proposals and applications to open or relocate a branch office. American Express Bank was examined by the OCC during the fourth quarter of 2012 and received a "satisfactory" CRA rating. Centurion Bank was examined by the FDIC for CRA compliance during the third quarter of 2015. We are...

  • Page 39
    ... network information security directive, to be implemented into national laws by Member States. PSD2 also contains regulatory requirements on strong customer authentication and measures to prevent security incidents. Fair Credit Reporting The FCRA regulates the disclosure of consumer credit reports...

  • Page 40
    ... The CARD Act regulates credit card billing, pricing, disclosure and other practices, as well as certain aspects of gift certificates, store gift cards and general-use prepaid cards primarily for personal use. Under the CARD Act, issuers must not open a credit card account or increase a credit line...

  • Page 41
    ... consulates around the world during the year ended December 31, 2015 in connection with certain travel arrangements on behalf of American Express Global Business Travel and TLS clients. We and American Express Global Business Travel had negligible gross revenues and net profits attributable to these...

  • Page 42
    ... billion in total consolidated assets, such as the Company, the proposed rule requires that at least 50 percent of certain executive officers' incentive-based compensation be deferred for a minimum of three years and provides for the adjustment of deferred payments to reflect actual losses or other...

  • Page 43
    ... as President, Global Network Business from September 2014 to October 2015. Prior thereto, he had been Executive Vice President, Global Credit Administration since January 2011. Mr. Fabara joined American Express from Barclays PLC, where he served as Managing Director and Global Head, Operations...

  • Page 44
    ... in the United States and elsewhere around the world. Uncertain expectations for global economic growth have had, and may continue to have, an adverse effect on us, in part because we are very dependent upon the level of consumer and business activity and the demand for credit and payment products...

  • Page 45
    ... prices we charge merchants that accept our cards for payment for goods and services. Unlike our competitors in the payments industry that rely on high revolving credit balances to drive profits, our business model is focused on Card Member spending. Discount revenue, which represents fees generally...

  • Page 46
    ... efforts to promote card usage through our marketing, promotion, merchant acceptance and rewards programs, or to effectively control the costs of such programs, both of which may impact our profitability. Increasing consumer and business spending on our cards and growing card lending balances depend...

  • Page 47
    ... increase in fraudulent activity using our cards could lead to reputational damage to our brand and significant legal, regulatory and financial exposure and could reduce the use and acceptance of our charge and credit cards. We and other third parties process, transmit and store account information...

  • Page 48
    ... to disrupt our business operations and capture various types of information relating to corporate trade secrets, customer information, including Card Member and loyalty program account information, employee information and other sensitive business information. There are a number of motivations for...

  • Page 49
    ... Card Member loans related to our cobrand partnerships with Costco Wholesale Corporation in the United States and JetBlue Airways Corporation that were transferred to held for sale on the Consolidated Balance Sheets effective December 1, 2015. See Note 2 to the "Consolidated Financial Statements...

  • Page 50
    ... could harm our business. We rely on third-party service providers, merchants, processors, aggregators, GNS partners and other third parties for services that are integral to our operations, including the timely transmission of accurate information across our global network. If a service provider or...

  • Page 51
    ... with respect to the types of products and services we may offer to consumers, the countries in which our cards may be used, and the types of customers and merchants who can obtain or accept our cards. Activity such as money laundering or terrorist financing involving our cards could result in...

  • Page 52
    ... management guidelines, credit bureau reporting, disclosure rules, security and marketing that would impact us directly, in part due to increased scrutiny of our underwriting and account management standards. These new requirements may restrict our ability to issue charge and credit cards or partner...

  • Page 53
    ...security-related practices, our collection, use, sharing, retention and safeguarding of consumer and/or employee information, and some of our current or planned business activities. New legislation or regulation could increase our costs of compliance and business operations and could reduce revenues...

  • Page 54
    ... level agreement or regulatory or legal requirements; or a failure to adequately monitor and control access to data in our systems we grant to third-party service providers. As processes are changed, or new products and services are introduced, we may not fully appreciate or identify new operational...

  • Page 55
    ... effectively manage credit risk related to consumer debt, business loans, settlement with GNS partners, merchant and consumer bankruptcies, delinquencies and other credit trends that can affect spending on card products, debt payments by individual and corporate customers and businesses that accept...

  • Page 56
    ... the revenue we generate outside the United States is subject to unpredictable fluctuations if the values of other currencies change relative to the U.S. dollar, which could have a material adverse effect on our results of operations. For the year ended December 31, 2015, foreign currency movements...

  • Page 57
    equity. Additionally, our regulators can adjust the requirements to be "well capitalized" at any time and have authority to place limitations on our deposit businesses, including the interest rate we pay on deposits. An inability to attract or maintain deposits in the future could materially ...

  • Page 58
    ... v. American Express Travel Related Services, which was filed on February 14, 2007, and is pending in the United States District Court for the Northern District of Illinois. Plaintiffs' principal allegation is that our gift cards violated consumer protection statutes because consumers allegedly...

  • Page 59
    ... on dividend restrictions, see "Dividends" under "Supervision and Regulation" and Note 23 to our Consolidated Financial Statements. You can find information on securities authorized for issuance under our equity compensation plans under the caption "Item 4 - Approval of American Express Company 2016...

  • Page 60
    ... on the price of our common stock on the date the relevant transaction occurs. (c) Share purchases under publicly announced programs are made pursuant to open market purchases or privately negotiated transactions (including employee benefit plans) as market conditions warrant and at prices we deem...

  • Page 61
    ... 31, 2012 Consolidated Statements of Income by reducing Other revenue and reducing Marketing, promotion, rewards, and Card Member services expense, from amounts previously reported in order to conform to the current period presentation. (b) Effective December 1, 2015, Provisions for losses does not...

  • Page 62
    .... Our principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. Business travel-related services are offered through a nonconsolidated joint venture, American Express Global Business Travel (GBT JV...

  • Page 63
    ... foreign currency exchange rates. In the United States, we saw softening in billings on the Costco cobrand card, where volumes dropped versus the prior year. Lower gas prices also continued to be a drag on billings. GCS billed business growth continued to slow due, in part, to lower airline volumes...

  • Page 64
    ... adverse effect on our results of operations and financial condition, see "Card-Issuing Business and Deposit Programs - Regulation" under "U.S. Card Services," "International Card Services - Regulation," "Global Commercial Services - Regulation," "Global Network & Merchant Services - Regulation" and...

  • Page 65
    ... in the foreign exchange (FX) rates, have been provided. TABLE 1: SUMMARY OF FINANCIAL PERFORMANCE Years Ended December 31, (Millions, except percentages and per share amounts) 2015 2014 2013 Change 2015 vs. 2014 Change 2014 vs. 2013 Total revenues net of interest expense ...Provisions for losses...

  • Page 66
    ...increases in average customer deposit balances. 1 The foreign currency adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (e.g., assumes the foreign exchange rates used to determine results for the current...

  • Page 67
    ... to a merchant-related charge in the fourth quarter of 2014. TABLE 4: EXPENSES SUMMARY Years Ended December 31, (Millions, except percentages) 2015 2014 2013 Change 2015 vs. 2014 Change 2014 vs. 2013 Marketing and promotion ...Card Member rewards ...Card Member services and other ...Total marketing...

  • Page 68
    ... costs related to certain previously renewed cobrand partnership agreements. The increase in the prior year was primarily driven by increased engagement levels and use of certain Card Member benefits, as well as American Express-branded airport lounges opened in 2014. Salaries and employee benefits...

  • Page 69
    ... INFORMATION Years Ended December 31, 2015 2014 2013 Change 2015 vs. 2014 Change 2014 vs. 2013 Card billed business: (billions) United States ...Outside the United States ...Total ...Total cards-in-force: (millions) United States ...Outside the United States ...Total ...Basic cards-in-force...

  • Page 70
    ...Airline-related volume (8% and 9% of worldwide billed business for 2015 and 2014, respectively) ...United States (b) Billed business ...Proprietary consumer card billed business (d) ...Proprietary small business billed business (d) ...Proprietary corporate services billed business (e) ...T&E-related...

  • Page 71
    ... write-offs (c) ...Other (d) ...Ending balance ...% of receivables ...Net write-off rate - principal only - USCS/ICS (f) ...Net write-off rate - principal and fees - USCS/ICS (f) ...30+ days past due as a % of total - USCS/ICS ...Net loss ratio as a % of charge volume - GCS ...90+ days past billing...

  • Page 72
    ... YIELD ON CARD MEMBER LOANS Years Ended December 31, (Millions, except percentages and where indicated) 2015 2014 2013 Net interest income ...Exclude: Interest expense not attributable to the Company's Card Member loan portfolio ...Interest income not attributable to the Company's Card Member loan...

  • Page 73
    ... changes starting in the first quarter of 2016. This overview discusses the operating segments used for financial reporting in 2015. Results of the business segments generally treat each segment as a stand-alone business. The management reporting process that derives these results allocates revenue...

  • Page 74
    ... 7% $ 7 USCS offers a wide range of card products and services to consumers and small businesses in the United States, provides travel services to Card Members and other consumers, and operates a coalition loyalty business. TOTAL REVENUES NET OF INTEREST EXPENSE Non-interest revenues increased $552...

  • Page 75
    ...the prior year. Total expenses increased $667 million in 2014 compared to 2013, primarily driven by higher marketing and promotion expenses, higher cobrand rewards expenses related to higher spending volumes and an increase in Membership Rewards expense, which was due to higher new points earned and...

  • Page 76
    .... 2014 Change 2014 vs. 2013 Card billed business (billions) ...Total cards-in-force ...Basic cards-in-force ...Average basic Card Member spending (dollars)* ...U.S. Consumer Travel: Travel sales ...Travel commissions and fees/sales ...Total segment assets (billions) (a) ...Segment capital ...Return...

  • Page 77
    ... loans write-off rates for 2015, 2014 and 2013. EXPENSES Marketing, promotion, rewards, Card Member services and other expenses decreased $217 million or 10 percent in 2015 compared to 2014, but increased 3 percent on an FX-adjusted basis, reflecting elevated levels of spending on growth initiatives...

  • Page 78
    ... and promotion expenses, higher Loyalty Partner expenses and higher restructuring charges in 2014. INCOME TAXES The effective tax rate in all periods reflects the recurring permanent tax benefit related to the segment's ongoing funding activities outside the United States, in relation to the levels...

  • Page 79
    ... 2014 vs. 2013 Card billed business (billions) ...Total cards-in-force ...Basic cards-in-force ...Average basic Card Member spending (dollars)* ...International Consumer Travel: Travel sales ...Travel commissions and fees/sales ...Total segment assets (billions) (a) ...Segment capital ...Return...

  • Page 80
    ... after provisions for losses ...Expenses Marketing, promotion, rewards, Card Member services and other ...Salaries and employee benefits and other operating expenses ...Total expenses ...Pretax segment income ...Income tax provision ...Segment income ...Effective tax rate ...# Denotes a variance...

  • Page 81
    ...the Years Ended December 31, (Millions, except percentages and where indicated) 2015 2014 2013 Change 2015 vs. 2014 Change 2014 vs. 2013 Card billed business (billions) ...Total cards-in-force ...Basic cards-in-force ...Average basic Card Member spending (dollars)* ...Total segment assets (billions...

  • Page 82
    ... for losses decreased $39 million or 42 percent in 2015 compared to 2014, and increased $26 million or 39 percent in 2014 compared to 2013. The change in both periods reflected a merchant-related charge in the fourth quarter of 2014. EXPENSES Marketing, promotion, rewards, Card Member services and...

  • Page 83
    ... STATISTICAL INFORMATION As of or for the Years Ended December 31, (Millions, except percentages and where indicated) 2015 2014 2013 Change 2015 vs. 2014 Change 2014 vs. 2013 Global worldwide card billed business (billions) ...Total segment assets (billions) ...Segment capital (a) ...Return on...

  • Page 84
    ... takes into account our business activities, as well as marketplace conditions and requirements or expectations of credit rating agencies, regulators and shareholders, among others. Our consolidated capital position is also influenced by subsidiary capital requirements. As a bank holding company, we...

  • Page 85
    ... ...American Express Company ...American Express Centurion Bank ...American Express Bank, FSB ...Supplementary Leverage Ratio (b) ...American Express Company ...American Express Centurion Bank ...American Express Bank, FSB ...Common Equity to Risk-Weighted Assets American Express Company ...Tangible...

  • Page 86
    ... stock options by employees, has exceeded the annual growth in our capital requirements. To the extent capital has exceeded business, regulatory and rating agency requirements, we have historically returned excess capital to shareholders through our regular common share dividend and share repurchase...

  • Page 87
    ..., subject to business and market conditions. As previously mentioned, we issued $600 million of subordinated notes in the fourth quarter of 2014, which qualifies as Tier 2 capital under Basel rules. Our total risk-based capital ratio is expected to remain well in excess of the required minimum. 76

  • Page 88
    ... in 2015. These dividend and share repurchase amounts represent approximately 105 percent of total capital generated during the year. The amount of capital we generated in 2015 significantly exceeded the capital required to finance organic business growth and acquisitions. The proposed sales of the...

  • Page 89
    ...31: TABLE 21: SUMMARY OF CONSOLIDATED DEBT AND CUSTOMER DEPOSITS (Billions) 2015 2014 Short-term borrowings ...Long-term debt ...Total debt ...Customer deposits ...Total debt and customer deposits ... $ 4.8 $ 3.5 48.1 58.0 52.9 55.0 61.5 44.2 $105.7 $107.9 Management does not currently expect to...

  • Page 90
    ... paper outstanding was $0.9 billion and $0.2 billion in 2015 and 2014, respectively. $ 2.1 2.7 $4.8 $0.8 2.7 $3.5 Refer to Note 9 to the "Consolidated Financial Statements" for further description of these borrowings. DEPOSIT PROGRAMS We offer deposits within our American Express Centurion Bank...

  • Page 91
    ...(a) Floating Rate Senior Certificates (1-month LIBOR plus 29 basis points on average) ...Total ... $4.9 1.7 1.0 $ 7.6 (a) Issuances from the American Express Credit Account Master Trust (the Lending Trust) do not include $0.1 billion of subordinated securities retained by us during the year. ASSET...

  • Page 92
    ... as of December 31, 2015 in U.S. credit card loans and charge card receivables that could be sold over time through our securitization trusts or pledged in return for secured borrowings, to provide further liquidity, subject in each case to applicable market conditions and eligibility criteria. 81

  • Page 93
    ... and repaying debt, changes in customer deposits, issuing and repurchasing our common shares, and paying dividends. For the year ended December 31, 2015, net cash used in financing activities was $2.0 billion. For the year ended December 31, 2014, net cash provided by financing activities was $11...

  • Page 94
    ... 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, 2015, we had guarantees totaling approximately $48 billion related to Card Member protection plans, as...

  • Page 95
    ... reports issued by Internal Audit and the status of our corrective actions. The Compensation and Benefits Committee of our Board of Directors works with the Chief Risk Officer to ensure our overall compensation programs, as well as those covering our business units and risk-taking employees...

  • Page 96
    ... prospecting, new account approvals, point-of-sale authorizations, credit line management and collections. The subordinate risk policies and operating manuals are designed to ensure consistent application of risk management principles and standardized reporting of asset quality and loss recognition...

  • Page 97
    ... strategy companywide through comprehensive business analysis of global airlines. Our largest airline partner is Delta, and this relationship includes exclusive cobrand credit card partnerships and other arrangements including Membership Rewards redemption, merchant acceptance, travel and corporate...

  • Page 98
    ... and investment securities) and our interest rates on our liabilities (such as debt and deposits); and • Foreign exchange risk related to earnings, funding, transactions and investments in currencies other than the U.S. dollar. Our Asset-Liability Management (ALM) and Market Risk policies...

  • Page 99
    ... rate scenarios to inform us of the potential impacts from interest rate changes on earnings and the value of assets, liabilities and the economic value of equity. As of December 31, 2015, the detrimental effect on our annual net interest income of a hypothetical, immediate 100 basis point increase...

  • Page 100
    ... risk assessment by operational, market, credit and oversight leaders and approval by either the Chief Risk Officer or appropriate risk committees. All new products and material changes in business processes are reviewed and approved by the New Products Committee and appropriate credit or risk...

  • Page 101
    ... by current Card Members based on redemption trends, card product type, enrollment tenure, card spend levels and credit attributes. The WAC per point assumption is used to estimate future redemption costs and is primarily based on redemption choices made by Card Members, reward offerings by partners...

  • Page 102
    ... impairment loss through earnings. Derivative Instruments Our primary derivative instruments are interest rate swaps and foreign currency forward agreements. The fair value of our derivative instruments is estimated by using either a third-party valuation service that uses proprietary pricing models...

  • Page 103
    ... economic conditions. To discount these cash flows we use our expected cost of equity, determined using a capital asset pricing model. When using the market method under the market approach, we apply comparable publicly traded companies' multiples (e.g., earnings, revenues) to our reporting units...

  • Page 104
    ... certain balances. Credit cards - Represents cards that have a range of revolving payment terms, grace periods, and rate and fee structures. Discount revenue - Represents revenue earned from fees generally charged to merchants who have entered into a card acceptance agreement. The discount fee...

  • Page 105
    ... Card Member accounts which have no out-of-store spending activity during the prior 12-month period. Travel sales - Represents the total dollar amount of travel transaction volume for airline, hotel, car rental, and other travel arrangements made for consumers and small businesses. We earn revenue...

  • Page 106
    ... and network products, increasing penetration among corporate, middle market and small business clients, expanding our international footprint, growing loyalty coalitions and increasing merchant acceptance; the timing and impact of any potential sale of the Costco U.S. Card Member loan portfolio...

  • Page 107
    ... digital channels; our ability to update our systems and platforms to support new products, services and benefits; competition; and brand perceptions and reputation; • changes in global economic and business conditions, including consumer and business spending, the availability and cost of credit...

  • Page 108
    ... weather conditions, natural disasters, health pandemics, terrorism, cyber attacks or fraud, which could significantly affect spending on American Express cards, delinquency rates, loan balances and travel-related spending or disrupt our global network systems and ability to process transactions...

  • Page 109
    ... authorizations of our management and directors; and • Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. Because of its inherent limitations, internal...

  • Page 110
    ... accompanying consolidated balance sheets and the related consolidated statements of income, comprehensive income, cash flows and shareholders' equity present fairly, in all material respects, the financial position of American Express Company and its subsidiaries at December 31, 2015 and 2014, and...

  • Page 111
    ...' Equity - For the Years Ended December 31, 2015, 2014 and 2013 . . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies ...Note 2 - Business Events ...Note 3 - Accounts Receivable and Loans ...Note 4 - Reserves for Losses ...Note 5 - Investment Securities...

  • Page 112
    ... losses Charge card ...Card Member loans ...Other ...Total provisions for losses ...Total revenues net of interest expense after provisions for losses ...Expenses Marketing and promotion ...Card Member rewards ...Card Member services and other ...Salaries and employee benefits ...Other, net ...Total...

  • Page 113
    ... STATEMENTS OF COMPREHENSIVE INCOME Years Ended December 31 (Millions) 2015 2014 2013 Net income ...Other comprehensive loss: Net unrealized securities (losses) gains, net of tax ...Foreign currency translation adjustments, net of tax ...Net unrealized pension and other postretirement benefit...

  • Page 114
    ... Cash and cash equivalents Cash and due from banks ...$ 2,935 $ 2,628 Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2015, $41; 2014, $204) ...19,569 19,190 Short-term investment securities ...258 470 Total cash and cash equivalents ...Card Member...

  • Page 115
    ... payments on long-term debt ...Issuance of American Express preferred shares ...Issuance of American Express common shares ...Repurchase of American Express common shares ...Dividends paid ...Net cash (used in) provided by financing activities ...Effect of foreign currency exchange rates on cash...

  • Page 116
    ... employee plans ...Cash dividends declared common, $1.01 per share ...Balances as of December 31, 2014 ...Net income ...Other comprehensive loss ...Preferred shares issued ...Repurchase of common shares ...Other changes, primarily employee plans ...Cash dividends declared preferred ...Cash dividends...

  • Page 117
    ...The Company's principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Business Travel...

  • Page 118
    ...a Global Network Services (GNS) partner, has entered into a card acceptance agreement for facilitating transactions between the merchants and the Company's Card Members. The discount fee generally is deducted from the payment to the merchant and recorded as discount revenue at the time the charge is...

  • Page 119
    ... banks, interest-bearing bank balances, including securities purchased under resale agreements, and other highly liquid investments with original maturities of 90 days or less. Goodwill Goodwill represents the excess of acquisition cost of an acquired business over the fair value of assets acquired...

  • Page 120
    ..., which is effective January 1, 2018, makes targeted changes to current GAAP, specifically to the classification and measurement of equity securities, and to certain disclosure requirements associated with the fair value of financial instruments. The Company is currently evaluating the impact...

  • Page 121
    ...the first quarter of 2015, the Company changed the classification related to certain payments to partners, reducing both discount revenue and marketing and promotion expense. Prior period amounts have been reclassified to conform to the current period presentation. None of the prior period financial...

  • Page 122
    ... billion of Card Member receivables outside the United States as of December 31, 2015 and 2014, respectively. (e) Other receivables primarily represent amounts related to (i) certain merchants for billed discount revenue and (ii) GNS partner banks for items such as royalty and franchise fees. Other...

  • Page 123
    ...limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members and in accordance with applicable regulations and the respective product's terms and conditions. Card Members holding revolving loans are typically required to make monthly...

  • Page 124
    ... billing statement date. The following table presents the aging of Card Member loans and receivables as of December 31, 2015 and 2014: 2015 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Card Services ...International Card Services ...Card...

  • Page 125
    ... Receivables 2014 Net Loss Ratio as 90+ a % of Days Past Billing Charge as a % of Volume Receivables Card Member Receivables: Global Commercial Services ... 0.09% 0.9% 0.09% 0.8% (a) The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees...

  • Page 126
    ... as the difference between the cash flows expected to be received from the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying value of the related Card Member loan or receivable balance. The Company...

  • Page 127
    ... the years ended December 31: Average Balance Interest Income Recognized 2015 (Millions) Card Member Loans: U.S. Card Services ...International Card Services ...Card Member Receivables: U.S. Card Services ...Total ... $673 54 33 $760 Average Balance $59 14 - $ 73 Interest Income Recognized 2014...

  • Page 128
    ... and the Company does not offer modification programs for its GCS Card Member receivables; therefore, these segments are not included in the following TDR disclosures. Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) 2015 Number of Accounts (in thousands...

  • Page 129
    ... RESERVES FOR LOSSES Reserves for losses relating to Card Member receivables and loans represent management's best estimate of the probable inherent losses in the Company's outstanding portfolio of loans and receivables, as of the balance sheet date. Management's evaluation process requires certain...

  • Page 130
    .... CHANGES IN CARD MEMBER LOANS RESERVE FOR LOSSES The following table presents changes in the Card Member loans reserve for losses for the years ended December 31: (Millions) 2015 2014 2013 Balance, January 1 ...Provisions (a) ...Net write-offs Principal (b) ...Interest and fees (b) ...Transfer...

  • Page 131
    ...-sale and carries at fair value on the Consolidated Balance Sheets, with unrealized gains (losses) recorded in Accumulated Other Comprehensive Loss, net of income taxes. Realized gains and losses are recognized on a trade-date basis in results of operations upon disposition of the securities using...

  • Page 132
    ... after 10 years (Millions) Total State and municipal obligations (a) ...U.S. Government agency obligations ...U.S. Government treasury obligations ...Corporate debt securities ...Mortgage-backed securities (a) ...Foreign government bonds and obligations ...Total Estimated Fair Value ...Total Cost...

  • Page 133
    ... by American Express Travel Related Services Company, Inc. (TRS), which is a consolidated subsidiary of the Company. The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card...

  • Page 134
    ...2015 and 2014. For 2015 and 2014, $80 million and $96 million, respectively, of foreign deferred tax liabilities is reflected in Other Liabilities. Derivative assets reflect the impact of master netting agreements. (b) Includes prepaid miles and reward points acquired primarily from airline partners...

  • Page 135
    ... using the equity method of accounting. The Company had $638 million and $622 million in tax credit investments as of December 31, 2015 and 2014, respectively, included in Other assets on the Consolidated Balance Sheets, of which $578 million and $522 million, respectively, specifically related...

  • Page 136
    ...-bearing (includes Card Member credit balances of: 2015, $323 million; 2014, $347 million) ...335 359 Total customer deposits ...$54,997 $ 44,171 Customer deposits by deposit type as of December 31 were as follows: (Millions) 2015 2014 U.S. retail deposits: Savings accounts - Direct ...$29,023...

  • Page 137
    ...DEBT SHORT-TERM BORROWINGS The Company's short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: Outstanding Balance 2015 Year-End Stated Rate on Debt (a) Outstanding Balance 2014 Year-End Stated Rate...

  • Page 138
    ...-TERM DEBT The Company's long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2014 Year-End Year-End Original Effective Effective Contractual Year-End Interest Year-End Interest Maturity Outstanding Stated Rate...

  • Page 139
    ... by American Express Credit Corporation (Credco) of a 1.25 ratio of combined earnings and fixed charges, to fixed charges. As of December 31, 2015 and 2014, the Company was not in violation of any of its debt covenants. Additionally, the Company maintained a 3-year committed, revolving, secured...

  • Page 140
    ...(a) Employee-related liabilities include employee benefit plan obligations and incentive compensation. (b) Card Member rebate and reward accruals include payments to third-party reward partners and cash-back reward costs. (c) Other includes accruals for general operating expenses, client incentives...

  • Page 141
    ....99 - $74.67 - - (a) Outstanding as of December 31, 2014, includes CEO market-based stock options of 687,000 that were previously disclosed separately. The Company recognizes the cost of employee stock awards granted in exchange for employee services based on the grant-date fair value of the award...

  • Page 142
    ...-BASED AWARDS Certain employees are awarded PGs and other incentive awards that can be settled with cash or equity shares at the Company's discretion and final Compensation and Benefits Committee payout approval. These awards earn value based on performance, market and service conditions, and vest...

  • Page 143
    ... plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the Consolidated Balance Sheets. As of December 31, 2015 and 2014, the funded status related to the defined benefit pension plans and other...

  • Page 144
    ... also has obligations to make payments under contractual agreements with certain cobrand partners. The Company expects to fully satisfy these obligations over the remaining term of these agreements as part of the ongoing operations of its business. As of December 31, 2015, the obligations under such...

  • Page 145
    ... 31, 2015 and 2014, the Company did not have any designated cash flow hedges. Foreign exchange risk is generated by Card Member cross-currency charges, foreign currency balance sheet exposures, foreign subsidiary equity and foreign currency earnings in entities outside the United States. The Company...

  • Page 146
    ... total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: Other Assets Fair Value 2015 2014 Other Liabilities Fair Value 2015 2014 (Millions) Derivatives designated as hedging instruments: Interest rate contracts Fair value hedges ...Foreign exchange...

  • Page 147
    ... 18, 2014, the Company sold its remaining shares in ICBC and terminated the TRC. The following table summarizes the impact on the Consolidated Statements of Income associated with the Company's fair value hedges of its fixed-rate long-term debt and its investment in ICBC for the years ended December...

  • Page 148
    ... the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified date. The changes in the fair value of the derivatives effectively offset the related foreign exchange gains or losses on the underlying balance sheet exposures. From time to time, the Company also...

  • Page 149
    ... cash flows). The Company did not measure any financial instruments presented on the Consolidated Balance Sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2015 and 2014, although the disclosed fair value of certain assets...

  • Page 150
    ...the Company receives one price for each security. The fair values provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. Such investment securities are classified within Level...

  • Page 151
    ..., 2015 and 2014, respectively. (d) Does not include any fair value associated with the Card Member account relationships. Refer to Note 2 for additional information. (e) Presented as a component of customer deposits on the Consolidated Balance Sheets. The fair values of these financial instruments...

  • Page 152
    ...Company's long-term debt is measured using quoted offer prices when quoted market prices are available. If quoted market prices are not available, the fair value is determined by discounting the future cash flows of each instrument at rates currently observed in publicly-traded debt markets for debt...

  • Page 153
    ... quarter of 2015, the Company recorded a $384 million impairment charge, consisting of a $219 million write-down of the entire balance of goodwill in the Prepaid Services business and a $165 million writedown of technology and other assets to fair value, which was insignificant for the year ended...

  • Page 154
    ...Company has the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of December 31, 2015: Series B Series C Issuance date Securities issued Aggregate liquidation preference Fixed dividend rate per annum Semi-annual fixed dividend payment dates...

  • Page 155
    ... into earnings ...Net translation loss of investments in foreign operations ...Net gains related to hedges of investments in foreign operations ...Pension and other postretirement benefit losses ...Net change in accumulated other comprehensive income (loss) ...Balances as of December 31, 2014 ...Net...

  • Page 156
    ... detail of Other revenues for the years ended December 31: (Millions) 2015 2014 2013 Gain on sale of investment in Concur Technologies ...Global Network Services partner revenues ...Gross realized gains on sale of investment securities ...Other (a) ...Total Other revenues ... $ - $ 744 $ - 640 694...

  • Page 157
    ... 1, 2015, merchant-related fraud losses are reported within Other expenses. (c) Other expense includes general operating expenses, gains (losses) on sale of assets or businesses not classified as discontinued operations, litigation, certain internal and regulatory review-related reimbursements...

  • Page 158
    ... the Company's restructuring reserves activity for the years ended December 31, 2015, 2014 and 2013: (Millions) Severance Other (a) Total Liability balance as of December 31, 2012 ...Restructuring charges, net of $4 in revisions (b) ...Payments ...Other non-cash (c) ...Liability balance as...

  • Page 159
    ... to the Company's actual income tax rate for the years ended December 31 on continuing operations was as follows: 2015 2014 2013 U.S. statutory federal income tax rate ...(Decrease) increase in taxes resulting from: Tax-exempt income ...State and local income taxes, net of federal benefit ...Non...

  • Page 160
    ... at the reporting date. The Company adjusts the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. The Company is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in...

  • Page 161
    ... tax benefits: (Millions) 2015 2014 2013 Balance, January 1 ...Increases: Current year tax positions ...Tax positions related to prior years ...Decreases: Tax positions related to prior years ...Settlements with tax authorities ...Lapse of statute of limitations ...Effects of foreign currency...

  • Page 162
    ... actions by regulators, that, if undertaken, could have a direct material effect on the Company's and the Banks' operating activities. As of December 31, 2015 and 2014, the Company and the Banks met all capital requirements to which each was subject and maintained regulatory capital ratios in excess...

  • Page 163
    ...the dividends to pay their parent, the Banks must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, the Banks' banking regulators have authority to limit or prohibit the payment of...

  • Page 164
    ... geographic location in managing credit exposure. The following table details the Company's Card Member loans and receivables exposure (including unused linesof-credit on Card Member loans) in the United States and outside the United States as of December 31: (Billions) 2015 2014 On-balance sheet...

  • Page 165
    ... of card products and services to consumers and small businesses outside the United States, provides travel services to Card Members and other consumers, and operates a coalition loyalty business in various countries. • GCS offers global corporate payment services to large and mid-sized companies...

  • Page 166
    ... certain selected financial information for the Company's reportable operating segments and Corporate & Other as of or for the years ended December 31, 2015, 2014 and 2013: (Millions, except where indicated) USCS ICS GCS GNMS Corporate & Other (a) Consolidated 2015 Non-interest revenues ...Interest...

  • Page 167
    ... effective tax rates applicable to various businesses that comprise the segment. GEOGRAPHIC OPERATIONS The following table presents the Company's total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions: (Millions) United States EMEA...

  • Page 168
    ... STATEMENTS OF INCOME Years Ended December 31 (Millions) 2015 2014 2013 Revenues Non-interest revenues Gain on sale of securities ...Other ...Total non-interest revenues ...Interest income ...Interest expense ...Total revenues net of interest expense ...Expenses Salaries and employee benefits...

  • Page 169
    PARENT COMPANY - CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2015 2014 2013 Cash Flows from Operating Activities Net income ...Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates ...Dividends ...

  • Page 170
    ...QUARTERLY FINANCIAL DATA (UNAUDITED) (Millions, except per share amounts) 2015 2014 Quarters Ended ... 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues... 1.43 1.33 Cash dividends declared per common share ...0.29 0.29 0.29 0.26 0.26 0.26 0.26 0.23 Common share price: High ...77.85 81...

  • Page 171
    ... to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. There have not been any changes in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15...

  • Page 172
    ... at http://ir.americanexpress.com. You may also access our Investor Relations website through our main website at www.americanexpress.com by clicking on the "About American Express" link, which is located at the bottom of the Company's homepage. (Information from such sites is not incorporated by...

  • Page 173
    ... undersigned, thereunto duly authorized. AMERICAN EXPRESS COMPANY /S/ JEFFREY C. CAMPBELL Jeffrey C. Campbell Executive Vice President and Chief Financial Officer February 19, 2016 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following...

  • Page 174
    ... Company's financial position or results of operations. Distribution of Assets, Liabilities, and Shareholders' Equity; Interest Rates and Interest Differential The following tables provide a summary of the Company's consolidated average balances including major categories of interest-earning assets...

  • Page 175
    ... cost balances and do not include changes in fair value recorded in other comprehensive loss. Average yield on non-taxable investment securities is calculated on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent. (f) Amounts include (i) average equity securities balances...

  • Page 176
    ...-interest-bearing Customer deposits include average Card Member credit balances of $311 million, $344 million and $219 million for 2015, 2014 and 2013, respectively. (e) Net average yield on interest-earning assets is defined as net interest income divided by average total interest-earning assets as...

  • Page 177
    ... Net Volume Rate Change 2014 vs. 2013 Increase (Decrease) due to change in: Average Average Net Volume Rate Change Years Ended December 31, (Millions) Interest-earning assets Interest-bearing deposits in other banks U.S...Non-U.S...Federal funds sold and securities purchased under agreements to...

  • Page 178
    ... agreements. 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. The Company's charge card products generally have no preset spending limit, the associated credit limit on charge...

  • Page 179
    ... floating interest rates for loans due after one year based upon the stated terms of the loan agreements. December 31, (Millions) Within 1 year (a) (b) years (b) (c) 1-5 After 5 years (c) 2015 Total Loans U.S. loans Card Member ...Other ...Non-U.S. loans Card Member ...Other ...Total loans ...Loans...

  • Page 180
    ...Beginning January 1, 2015, on a prospective basis the Company continues to classify Card Member accounts that have exited a modification program as a TDR, with such accounts identified as "Out of Program TDRs". Refer to Note 3 to the Consolidated Financial Statements for additional information. A-7

  • Page 181
    ... information about possible credit problems of the borrowers causes management to have serious doubts as to the ability of such borrowers to comply with the present repayment terms. At December 31, 2015, the Company did not identify any potential problem loans or receivables within the Card Member...

  • Page 182
    ... financial institutions institutions NBFIs Gross Total Total foreign- exposure cross-border office (net of Cross-border Other outstandings liabilities liabilities) commitments Years Ended December 31, (Millions) Australia ...2015 2014 2013 Canada ...2015 2014 2013 United Kingdom ...2015 2014...

  • Page 183
    ...reserves for credit losses, a net write-off rate including principal, interest and fees is also presented. The year ended December 31, 2015, reflects the impact of a change in the timing of charge-offs for Card Member loans in certain modification programs from 180 days past due to 120 days past due...

  • Page 184
    ...models that analyze specific portfolio statistics. (b) Includes primarily foreign currency translation adjustments. (c) The net write-off rate presented is on a worldwide basis and is based on write-offs of principal, interest and fees. Average other loans outstanding are based on month end balances...

  • Page 185
    ...Company's allowance for Card Member receivables losses. The table segregates such changes between U.S. and non-U.S. borrowers. Years Ended December 31, (Millions, except percentages) 2015 2014 2013 2012 2011 Card Member receivables Allowance for losses at beginning of year U.S. receivables Consumer...

  • Page 186
    ... to the Consolidated Financial Statements for a discussion of management's process for evaluating the allowance for receivable losses. (b) Net write-offs include principal and fees balances. (c) Includes foreign currency translation adjustments and other items. Additionally, 2015 includes the impact...

  • Page 187
    ...total allowance, respectively, by customer type. The table segregates allowance for losses on loans and Card Member receivables between U.S. and non-U.S. borrowers. December 31, (Millions, except percentages) Allowance for losses at end of year applicable to 2015 Percentage (a) Amount Amount 2014...

  • Page 188
    ...for the quarter ended March 31, 2015). Company's By-Laws, as amended through October 20, 2014, (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K (Commission File No. 1-7657), dated October 20, 2014). The instruments defining the rights of holders of long-term debt...

  • Page 189
    ... of the American Express Company Retirement Plan for Non-Employee Directors dated March 21, 1996 (incorporated by reference to Exhibit 10.11 of the Company's Annual Report on Form 10-K (Commission File No. 1-7657) for the year ended December 31, 1995). American Express Key Executive Life Insurance...

  • Page 190
    ... to Non-Management Directors effective January 1, 2015 (incorporated by reference to Exhibit 10.39 of the Company's Annual Report on Form 10-K (Commission File No. 1-7657) for the year ended December 31, 2014). American Express Company 2007 Incentive Compensation Plan Master Agreement (as amended...

  • Page 191
    ... of the Company's Annual Report on Form 10-K (Commission File No. 1-7657) for the year ended December 31, 2014). Amendment No. 2, dated March 26, 2015, to the Amended and Restated Time Sharing Agreement, dated March 26, 2014, by and between American Express Travel Related Services Company, Inc. and...

  • Page 192
    ... other Global Business Travel-related items, including equity earnings from the joint venture and impacts related to a transition services agreement that will phase out over time. 2 FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency...

  • Page 193
    ..., Classified as Held for Sale on the Consolidated Balance Sheets Effective December 1, 2015 Adjusted Worldwide Loans Excluding Loans Related to Costco in the U.S. and JetBlue $ 58.6 2015 $ 58.6 2014 $ 70.4 YoY% INC/(DEC) (17%) $ 15.8 $ 54.6 7% B AMERICAN EXPRESS COMPANY | ANNUAL REPORT 2015

  • Page 194
    ... Williams President, Global Merchant Services & Loyalty Group BOARD OF DIRECTORS Charlene Barshefsky Senior International Partner WilmerHale Ursula M. Burns Chairman and Chief Executive Officer Xerox Corporation Kenneth I. Chenault Chairman and Chief Executive Officer American Express Company Peter...

  • Page 195
    ... American Express Card Design® American Express® Essential™ American Express Serve® American Express World Service & Design® Amex EveryDay® Bluebird® Blue Cash ® Blue Cash Everyday® Blue for Business® Centurion® Global Assist® LoyaltyEdge® Membership Rewards® OPEN Forum® OPEN Savings...

  • Page 196
    A M E R I C A N E X P R E S S C O M PA N Y 200 Vesey Street, New York, NY 10285 212.640.2000 www.americanexpress.com