American Express 2015 Annual Report Download - page 151

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FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT OTHER THAN FAIR VALUE
The following table summarizes the estimated fair values of the Company’s financial assets and financial liabilities
that are not required to be carried at fair value on a recurring basis, as of December 31, 2015 and 2014. The fair values
of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31,
2015 and 2014, and require management judgment. These figures may not be indicative of future fair values, nor can
the fair value of the Company be estimated by aggregating the amounts presented.
Carrying
Value
Corresponding Fair Value Amount
2015 (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 ..................................... $23 $23 $22 $ 1(a) $—
Other financial assets (b) ....................................... 47 47 — 47 —
Financial assets carried at other than fair value
Card Member loans and receivables HFS (d) ...................... 15 15 — — 15
Loans, net ................................................... 59 60(c) —— 60
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair
value ....................................................... 67 67 — 67 —
Financial liabilities carried at other than fair value
Certificates of deposit (e) ...................................... 14 14 — 14 —
Long-term debt .............................................. $48 $49(c) $ — $49 $ —
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 (e) ...................................... 8 8 — 8 —
Long-term debt .............................................. $58 $60
(c) $— $60 $—
(a) Reflects time deposits.
(b) Includes accounts receivable (including fair values of Card Member receivables of $6.7 billion and $7.0 billion held by a consolidated VIE as of
December 31, 2015 and 2014, respectively), restricted cash and other miscellaneous assets.
(c) Includes fair values of Card Member loans of $23.5 billion and $29.9 billion, and long-term debt of $13.6 billion and $19.5 billion held by
consolidated VIEs as of December 31, 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 are estimates based upon the market conditions and perceived risks
as of December 31, 2015, 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.
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