American Express 2015 Annual Report Download - page 138

LONG-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:
2015 2014
(Millions, except percentages)
Original
Contractual
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 ............... 2016-2042 $ 7,546 5.15% 4.25% $ 7,535 5.15% 4.20%
Floating Rate Senior Notes ............. 2018 850 0.97 — 850 0.85 —
Subordinated Notes (d) .................2024-2036 1,347 5.39 4.47 1,350 5.39 4.42
American Express Credit Corporation
Fixed Rate Senior Notes ............... 2016-2020 16,469 2.16 1.28 16,260 2.26 1.22
Floating Rate Senior Notes ............. 2016-2020 5,300 0.98 — 4,400 0.82 —
Borrowings under Bank Credit Facilities ...... ————3,672 4.25 —
American Express Centurion Bank
Fixed Rate Senior Notes ............... 2017 1,319 5.99 4.75 2,089 4.12 3.32
Floating Rate Senior Notes ............. 2018 125 0.81 — 675 0.68 —
American Express Bank, FSB
Fixed Rate Senior Notes ............... 2017 1,000 6.00 — 999 6.00 —
Floating Rate Senior Notes ............. 2017 300 0.62 — 300 0.46 —
American Express Charge Trust II
Floating Rate Senior Notes ............. 2018 2,200 0.67 — 3,700 0.41 —
Floating Rate Subordinated Notes ....... 2018 87 0.97 — 87 0.80 —
American Express Lending Trust
Fixed Rate Senior Notes ............... 2016-2017 4,000 1.35 — 6,100 1.11 —
Floating Rate Senior Notes ............. 2017-2019 7,025 0.82 — 8,876 0.72 —
Fixed Rate Subordinated Notes ......... ————300 1.08 —
Floating Rate Subordinated Notes ....... 2017-2019 316 0.97 — 488 0.73 —
Other
Fixed Rate Instruments (e) .............. 2021-2033 29 5.62 — 143 3.09 —
Floating Rate Borrowings .............. 2016-2019 244 0.66 —% 247 0.59 —%
Unamortized Underwriting Fees ......... (96) (116)
Total Long-Term Debt ................. $48,061 2.44% $57,955 2.34%
(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 14 for more details on the Company’s treatment of fair value
hedges.
(b) For floating-rate issuances, the stated and effective interest rates are weighted based on the outstanding balances and floating rates in effect as
of December 31, 2015 and 2014.
(c) Effective interest rates are only presented when swaps are in place to hedge the underlying debt.
(d) For the $750 million of subordinated debentures issued in 2006 and outstanding as of December 31, 2015, 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. At the Company’s option, the
subordinated debentures are redeemable for cash on or after September 1, 2016, at 100 percent of the principal amounts plus any accrued but
unpaid interest.
(e) Includes $29 million and $31 million as of December 31, 2015 and 2014, respectively, related to capitalized lease transactions.
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