10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

OR

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File No. 1-6908

AMERICAN EXPRESS CREDIT CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	11-1988350
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
200 Vesey Street, New York, New York	10285
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number including area code: (212) 640-2000.

Securities registered pursuant to Section 12 (b) of the Act:

Title of each class	Name of each exchange on which registered
2.375 percent Medium-Term Senior Notes	New York Stock Exchange
Series F, due May 26, 2020
0.625 percent Senior Notes, due 2021	New York Stock Exchange

Securities registered pursuant to Section 12 (g) of the Act: None.

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I (1) (a) AND (b) OF FORM 10-K AND HAS THEREFORE OMITTED CERTAIN ITEMS FROM THIS REPORT IN ACCORDANCE WITH THE REDUCED DISCLOSURE FORMAT PERMITTED UNDER INSTRUCTION I.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.Yes  No 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.Yes  No 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  No 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 	Accelerated filer 
Non-accelerated filer 	Smaller reporting company 
	Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  No 

American Express Company, through a wholly-owned subsidiary, owns all of the outstanding common stock of the registrant. Accordingly, there is no market for the registrant’s common stock. At March 1, 2018, 1,504,938 shares of the common stock, par value $0.10 per share, were outstanding.

Documents incorporated by reference: None

Table of Contents
Form 10-K
Item Number		Page
	PART I
1.	BUSINESS
	Introduction	1
	Overview	1
	American Express Card Business	1
	General Nature of Credco’s Business	2
	Foreign Operations	3
	Employees	3
1A.	RISK FACTORS	4
1B.	UNRESOLVED STAFF COMMENTS	9
2.	PROPERTIES	9
3.	LEGAL PROCEEDINGS	9
4.	MINE SAFETY DISCLOSURES	9
	PART II
5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	10
6.	SELECTED FINANCIAL DATA	10
7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)	11
	Business Environment	11
	Tax Cuts and Jobs Act	11
	Results of Operations	12
	Volume of Business	13
	Card Member Receivables and Card Member Loans	13
	Changes in Card Member Receivables and Card Member Loans Reserves for Losses	14
	Loans to Affiliates and Other	15
	Due from/to Affiliates	15
	Restricted Cash with Affiliates	15
	Short-term Debt to Affiliates	15
	Long-term Debt to Affiliates	16
	Service Fees to Affiliates	16
	Sources of Funds	16
	Consolidated Capital Resources and Liquidity	17
	Off-Balance Sheet Arrangements	19
	Risk Management	20
	Critical Accounting Estimates	24
	Other Matters	25
7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	27
8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	27
	Management’s Report on Internal Control Over Financial Reporting	27
	Report of Independent Registered Public Accounting Firm	28
	Index to Consolidated Financial Statements	29
	Consolidated Financial Statements	30
	Notes to Consolidated Financial Statements	35

9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	59
9A.	CONTROLS AND PROCEDURES	59
9B.	OTHER INFORMATION	59
	PART III
10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	60
11.	EXECUTIVE COMPENSATION	60
12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	60
13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	60
14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	60
	PART IV
15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES	61
16.	FORM 10-K SUMMARY	61
	SIGNATURES	62
	EXHIBIT INDEX	E-1

This Annual Report on Form 10-K, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. You can identify forward-looking statements by words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “estimate,” “predict,” “potential,” “continue,” or other similar expressions. Credco discusses certain factors that affect Credco’s business and operations and that may cause its actual results to differ materially from these forward-looking statements under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements”. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Credco undertakes no obligation to update publicly or revise any forward-looking statements.

PART I

Item 1.BUSINESS

INTRODUCTION

Overview

American Express Credit Corporation (Credco) was incorporated in Delaware in 1962 and was acquired by American Express Company (American Express) in December 1965. On January 1, 1983, Credco became a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), a wholly owned subsidiary of American Express. Both American Express and TRS are bank holding companies.

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express charge cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest-earning revolving loans are primarily funded by subsidiaries of TRS other than Credco.

American Express Card Business

American Express is a global services company that provides customers with access to products, insights and experiences that enrich lives and build business success. American Express’ principal products and services are charge and credit card products and travel-related services offered to consumers and businesses around the world.

The charge cards are designed primarily as a method of payment, with Card Members generally paying the full amount billed each month. Charges are approved based on a variety of factors including a Card Member’s current spending patterns, payment history, credit record and financial resources. Some charge card accounts have features that allow Card Members to revolve certain charges. In addition to charge cards, TRS and its subsidiaries and licensees also offer a variety of revolving credit cards marketed in the United States and other countries. These cards have a range of different payment terms, interest rate and fee structures.

In the United States, American Express’ marketing, sale and servicing of consumer financial products and its compliance with certain federal consumer financial laws, are supervised and examined by the Consumer Financial Protection Bureau (CFPB), which has broad rulemaking and enforcement authority over providers of credit, savings and payment services and products, and authority to prevent “unfair, deceptive or abusive” acts or practices. In addition, a number of U.S. states have significant consumer credit protection, disclosure and other laws (in certain cases more stringent than U.S. federal laws). U.S. federal law also regulates abusive debt collection practices, which, along with bankruptcy and debtor relief laws, can affect American Express’ ability to collect amounts owed to it or subject it to regulatory scrutiny.

In countries outside the United States, American Express has seen an increase in regulatory focus in relation to a number of key areas impacting its card-issuing businesses, particularly consumer protection (such as the European Union (EU), the United Kingdom and Canada) and responsible lending (such as Australia, Mexico, New Zealand and Singapore). Regulators in a number of countries are shifting their focus from just ensuring compliance with local rules and regulations toward paying greater attention to the product design and operation with a focus on customers and outcomes. Regulators’ expectations of firms in relation to their compliance, risk and control frameworks continue to increase and regulators are placing significant emphasis on a firm’s systems and controls relating to the identification and resolution of issues.

1

General Nature of Credco’s Business

Credco engages primarily in the business of financing Card Member receivables and in providing loans to certain of its affiliates. The use of a centralized funding source for assets originated by affiliated entities provides American Express with operational efficiency in the form of a single point of issuance to investors in the capital markets. Because its business operations have the limited scope of providing funding to its card-issuing affiliates, Credco’s results are insulated to a large extent from sources of volatility and risk inherent in the primary businesses of American Express and its other affiliates, making credit evaluations by investors and rating agencies less complex. Credco receives ongoing financial support from American Express through maintenance of its minimum overall 1.25 fixed charge coverage ratio, which is achieved by charging appropriate discount rates on the purchases of receivables Credco makes from, and the interest rates on the loans Credco provides to, TRS and other American Express affiliates. During each monthly period, the discount and interest rates are determined or adjusted to generate income for Credco that is sufficient to maintain its minimum fixed charge coverage ratio. Refer to Exhibit 12.1 for fixed charge coverage ratio calculation.

The agreements for the purchase and sale of card receivables and loans (receivables agreements) between Credco and its affiliates provide that the parties intend the transactions thereunder be conducted on an arm’s length basis and that, for example, the price at which receivables and loans are sold to Credco or its subsidiaries be at fair market value (including consideration of changes in interest rates or significant changes in collectability). Credco considers its expenses, such as interest costs, expected credit losses and applicable margin in the calculation of the discount rate at which Credco offers to purchase receivables and loans to maintain Credco’s required minimum fixed charge coverage ratio of 1.25. As a result, Credco’s level of profitability relative to its assets should not be materially negatively impacted by an increase in either the provisions for credit losses or the cost of funds. For additional discussion on the fixed charge coverage ratio, refer to page 19.

Credco funds, either directly or indirectly through its consolidated subsidiaries, Card Member receivables and loans primarily in one or more of the following ways:

 purchases, without recourse, of Card Member receivables and loans directly from issuers of American Express cards (card issuers);

 purchases of participation interests from TRS’ securitization program;

 unsecured loans provided to affiliates; and

 transfers of Card Member receivables and loans with recourse, representing loans provided to affiliates that are collateralized by the underlying Card Member receivables and loans.

Where Credco purchases Card Member receivables and loans without recourse, amounts resulting from unauthorized charges (for example, those made with a lost or stolen card) are excluded from the definition of receivables and loans under the receivables agreements and are not eligible for purchase by Credco. If the unauthorized nature of the charge is discovered after purchase by Credco, the card issuer repurchases the charge from Credco.

Credco generally purchases non-interest-earning Card Member receivables at face amount less a specified discount, which is determined at the time of purchase based upon the nature of the receivables. The discount rate applicable to purchases of new receivables reflects the prevailing funding costs and the collectability of the receivables.

Certain Card Member loans are purchased by Credco, which consist of interest-earning revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets.

As part of its funding activities, Credco regularly reviews funding sources and strategies in international markets and funds the subsidiaries of TRS either by way of unsecured loans or by purchasing Card Member receivables and/or loans, either with or without recourse, as per the terms of the receivables agreement with the respective card issuing entity.

TRS and its subsidiaries originate the Card Member receivables and loans and establish credit standards for Card Members on Credco’s behalf. In addition, TRS and its subsidiaries perform services necessary to bill and collect all Card Member receivables and loans owned by Credco, as agents for Credco. The receivables agreements provide that except with the prior written consent of Credco, the seller shall not materially reduce the credit standards used in determining whether a card is to be issued to an applicant or materially change the policy as to the cancellation of cards for credit reasons.

2

American Express, as the parent of TRS, has agreed with Credco that it will take all necessary steps to assure performance of certain TRS obligations under the receivables agreement between TRS and Credco. The receivables agreements may be terminated at any time by the parties thereto, generally upon little or no notice. The obligations of Credco are not guaranteed under the receivables agreements or otherwise by American Express or the card issuers.

Foreign Operations

Refer to Notes 1, 6 and 13 to the Consolidated Financial Statements for information about Credco’s foreign exchange translation and operations in different geographic regions.

Employees

As of both December 31, 2017 and 2016, Credco had 6 employees.

3

Item 1A.RISK FACTORS

This section highlights specific risks that could affect Credco and its business. Based on the information currently known to it, Credco believes the following information identifies the most significant risk factors affecting Credco. However, the risks and uncertainties that Credco faces are not limited to those described below. Additional risks and uncertainties not presently known to Credco or that Credco currently believes to be immaterial may also adversely affect Credco’s business.

If any of the following risks and uncertainties develop into actual events or if the circumstances described in the risks and uncertainties occur or continue to occur, these events or circumstances could have a material adverse effect on Credco’s business, financial condition or results of operations. These events could also have a negative effect on the trading price of its debt securities.

Adverse financial market conditions may significantly affect Credco’s ability to meet liquidity needs, access to capital and cost of capital.

Credco needs liquidity to purchase receivables from, and make loans to, its affiliates and to pay operating and other expenses, interest on debt and to repay maturing liabilities. The principal sources of Credco’s liquidity are payments from Card Members, cash and cash equivalents, proceeds from the issuance of unsecured medium- and long-term notes, assets that could be sold to TRS for securitization, and a committed bank borrowing facility, as well as access to additional liquidity in the form of cash and readily marketable securities held by certain affiliates, through intercompany loan agreements.

Credco’s ability to obtain financing in the debt capital markets for unsecured term debt and asset securitizations is dependent on market conditions. Disruptions, uncertainty or volatility across the financial markets, as well as adverse developments affecting American Express’ competitors and the financial industry generally, could negatively impact market liquidity and limit Credco’s access to funding required to operate its business. Such market conditions may also limit its ability to replace, in a timely manner, maturing liabilities and access the funding necessary to provide financing to its affiliates. In some circumstances, Credco may incur an unattractive cost to raise capital, which could decrease profitability and significantly reduce financial flexibility.

Difficult conditions in the business and economic environment, as well as political conditions in the United States and elsewhere, may materially adversely affect Credco’s business and results of operations.

Credco’s results of operations are materially affected by economic, market, political and social conditions in the United States and abroad. American Express offers a broad array of products and services to consumers, small businesses and commercial clients and thus is very dependent upon the level of consumer and business activity and the demand for payment and financing products. Slow economic growth or deterioration in economic conditions could change customer behaviors, including spending on American Express cards and the ability and willingness of Card Members to borrow and pay amounts owed to American Express. Political conditions in certain regions or countries could also negatively affect consumer and business spending, including in other parts of the world.

Factors such as consumer spending and confidence, unemployment rates, business investment, government spending, interest rates, taxes (including the broad and complex changes made by the Tax Cuts and Jobs Act to the U.S. tax code), fuel and other energy costs, the volatility and strength of the capital markets, inflation and deflation all affect the economic environment and, ultimately, Credco’s profitability. Such factors may also cause Credco’s earnings, receivables, credit metrics and margins to fluctuate and diverge from expectations of analysts and investors, who may have differing assumptions regarding their impact on Credco’s business.

Travel and entertainment expenditures, for example, are sensitive to business and personal discretionary spending levels and also tend to decline during general economic downturns. Likewise, spending by small businesses and corporate clients depends in part on the economic environment and a favorable climate for continued business investment and new business formation. Increases in delinquencies and write-off rates as a result of increases in bankruptcies, unemployment rates, changes in customer behaviors or otherwise could also have a negative impact on Credco’s results of operations. The consequences of negative circumstances impacting Credco or the environment generally can be sudden and severe.

4

Any reduction in Credco’s credit ratings could increase the cost of its funding from and restrict Credco’s access to the capital markets and have a material adverse effect on Credco’s results of operations and financial condition.

Rating agencies regularly evaluate Credco, and their ratings of Credco’s long-term and short-term debt are based on a number of factors, including Credco’s financial strength, as well as factors not within Credco’s control, including conditions affecting the financial services industry generally and the wider state of the economy. Credco’s ratings could be downgraded at any time and without any notice by any of the rating agencies, which could, among other things, adversely limit its access to the capital markets and adversely affect the cost and other terms upon which Credco is able to obtain funding.

Adverse currency fluctuations and foreign exchange controls could decrease the revenue Credco receives from its international operations.

During 2017, approximately 28 percent of Credco’s revenue was generated from activities outside the United States. Credco is exposed to foreign exchange risk from its international operations, and accordingly the revenue it generates 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 Credco’s results of operations. Furthermore, Credco may become subject to foreign exchange regulations that might restrict or prohibit the conversion of other currencies into U.S. dollars or Credco’s ability to transfer them and this could impact Credco’s results of operations.

Continuing concerns regarding the overall stability of the euro and the suitability of the euro as a single currency given the diverse economic and political circumstances in individual Eurozone countries may cause the value of the euro to fluctuate more widely than in the past and could lead to the reintroduction of individual currencies in one or more Eurozone countries, or, in more extreme circumstances, the possible dissolution of the euro currency entirely. If there is a significant devaluation of the euro and Credco is unable to hedge its foreign exchange exposure to the euro, the value of its euro-denominated assets and liabilities would be correspondingly reduced when translated into U.S. dollars for inclusion in Credco’s financial statements. Similarly, the reintroduction of certain individual country currencies or the complete dissolution of the euro could adversely affect the value of Credco’s euro-denominated assets and liabilities. In addition, foreign currency derivative instruments to hedge Credco’s market exposure to re-introduced currencies may not be immediately available or may not be available on acceptable terms.

The potential developments regarding Europe and the euro, or market perceptions concerning these and related issues, could continue to have an adverse impact on consumer and business behavior in Europe and globally, which could have a material adverse effect on Credco’s business, financial condition and results of operations.

Credco is an indirect wholly owned subsidiary of American Express. As such, it is affected by the strategic decisions and operating performance of American Express.

As an indirect wholly owned subsidiary of American Express, Credco’s business and operating performance can be affected by a wide range of possible strategic decisions that American Express may make from time to time. Those strategic decisions could affect the level and types of financing Credco provides to support the business of American Express and its other subsidiaries and the level and types of transactional or other support made available to Credco by American Express. In addition, circumstances affecting American Express can significantly affect Credco. For example, Credco’s debt ratings are closely tied to those of American Express, and when rating agencies take actions regarding American Express’ ratings, they may take the same actions with respect to Credco’s ratings. Significant changes in American Express’ strategy or its relationship with Credco or material adverse changes in the performance of American Express or its other subsidiaries could have a material adverse effect on Credco. The outstanding debt and other securities of Credco are not obligations of American Express, TRS or other American Express subsidiaries.

5

American Express’ business is subject to comprehensive government regulation and supervision, which could adversely affect Credco’s results of operations and financial condition.

American Express’ business is subject to comprehensive government regulation and supervision in jurisdictions around the world, which significantly affects its business, and has the potential to restrict the scope of American Express’ existing businesses, increase its costs of doing business, and limit its ability to pursue certain business opportunities, require changes to its business practices, affect its relationships with partners, merchants and Card Members, or make its products and services more expensive for customers. Regulatory oversight and supervision of American Express’ businesses are generally designed to protect consumers and enhance financial stability and are not designed to protect its security holders. New laws or regulations, enhanced supervision efforts or changes in the enforcement of existing laws or regulations applicable to American Express’ businesses could impact the profitability of its business activities, limit its ability to pursue business opportunities or adopt new technologies, require it to change certain of its business practices or alter its relationships with partners, merchants and Card Members, or affect retention of its key personnel. Such changes also may require American Express to invest significant management attention and resources to make any necessary changes and could adversely affect Credco’s results of operations and financial condition. Legislators and regulators around the world are aware of each other’s approaches to the regulation of the payments industry. Consequently, a development in one country, state or region may influence regulatory approaches in another.To the extent that different regulatory systems impose overlapping or inconsistent requirements on the conduct of American Express’ business, it faces complexity and additional costs in its compliance efforts.

If American Express fails to satisfy regulatory requirements or maintain its financial holding company status, its financial condition and results of operations could be adversely affected, and it may be restricted in its ability to take certain capital actions (such as declaring dividends or repurchasing outstanding shares) or engage in certain activities or acquisitions. Additionally, its banking regulators have wide discretion in the examination and the enforcement of applicable banking statutes and regulations and may restrict its ability to engage in certain activities or acquisitions, or may require American Express to maintain more capital.

In recent years, legislators and regulators have focused on the operation of card networks, including interchange fees paid to card issuers in payment networks such as Visa, Inc. (Visa) and MasterCard International Inc. (MasterCard) and the fees merchants are charged to accept cards. Even where American Express is not directly regulated, regulation of bankcard fees can significantly negatively impact the discount revenue derived from American Express’ business, including as a result of downward pressure on its discount rate from decreases in competitor pricing in connection with caps on interchange fees. In addition, there is uncertainty as to when or how interchange fee caps and other regulatory measures might apply when American Express works with cobrand partners and agents in the EU following a ruling from the EU Court of Justice, and there can be no assurance that American Express will be able to maintain such relationships in its current form.

American Express is subject to certain provisions of the Bank Secrecy Act, as amended by the USA PATRIOT Act, with regard to maintaining effective anti-money laundering (AML) programs. Similar AML requirements apply under the laws of most jurisdictions where American Express operates. Increased regulatory focus in this area could result in additional obligations or restrictions with respect to the types of products and services American Express may offer to consumers, the countries in which its cards may be used, and the types of customers and merchants who can obtain or accept its cards. Activity such as money laundering or terrorist financing involving American Express’ cards could result in enforcement action, and its reputation may suffer due to its customers’ association with certain countries, persons or entities or the existence of any such transactions.

U.S. federal law regulates abusive debt collection practices, which, along with bankruptcy and debtor relief laws, can affect American Express’ ability to collect amounts owed to it or subject it to regulatory scrutiny. American Express’ ability to recover debt it had previously written-off may be limited, which could have a negative impact on Credco’s results of operations.

Various regulatory agencies and legislatures are also considering regulations and legislation covering identity theft, account management guidelines, credit bureau reporting, disclosure rules, security and marketing that would impact American Express directly, in part due to increased scrutiny of our underwriting and account management standards. These new requirements may restrict its ability to issue charge and credit cards or partner with other financial institutions, which could adversely affect its revenue growth and Credco’s results of operations.

6

The risk management policies and procedures of American Express, Credco and the card issuers may not be effective.

American Express’ risk management framework seeks to identify and mitigate risk and appropriately balance risk and return. American Express has established policies and procedures intended to identify, monitor and manage the types of risk to which it is subject, including credit risk, market risk, asset liability risk, liquidity risk, operational risk, compliance risk, model risk,strategic and business risk and reputational risk. Although American Express and the card issuers have devoted significant resources to develop their risk management policies and procedures and expect to continue to do so in the future, these policies and procedures, as well as their risk management techniques such as hedging strategies, may not be fully effective. There may also be risks that exist, or develop in the future, that have not been appropriately anticipated, identified or mitigated. As regulations and markets in which American Express, Credco and the card issuers operate continue to evolve, the risk management framework may not always keep sufficient pace with those changes. If the risk management framework does not effectively identify or mitigate these risks, Credco could suffer unexpected losses or reputational harm that could materially adversely affect Credco.

Management of these risks in some cases depends upon the use of analytical and/or forecasting models. Although American Express has a governance framework for model development and independent model validation, the modeling methodology could be erroneous or the models could be misused. If these decisions are based on incorrect or misused model outputs and reports, Credco may face adverse consequences, such as financial loss, poor business and strategic decision-making, or damage to its reputation.

Management of credit, market, liquidity, and operational and compliance risk requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective.

Credit risk is the risk of loss from obligor or counterparty default. Credco is exposed to both consumer credit risk and institutional credit risk through the consumer and small business Card Member receivables and Card Member loans it purchases generally without recourse as well as through its participation interests. Third parties may default on their obligations to Credco due to bankruptcy, lack of liquidity, operational failure or other reasons. Country, regional and political risks contribute to credit risk. American Express’ and Credco’s ability to assess creditworthiness may be impaired if the criteria or models used to manage credit risk become less predictive of future losses, which could cause Credco’s losses to rise and have a negative impact on Credco’s results of operations. Rising delinquencies and rising rates of bankruptcy are often precursors of future write-offs and may require Credco to increase its reserve for losses. American Express is continuing to experience relatively low delinquency and write-off rates, but expects that these rates will increase over time. Higher write-off rates and an increase in Credco’s reserve for losses adversely affect its profitability and may increase its cost of funds.

Although American Express, Credco and the card issuers make estimates to provide for credit losses in their respective outstanding portfolio of receivables and loans, these estimates may not be accurate. In addition, the information American Express, Credco and the card issuers use in managing their credit risk may be inaccurate or incomplete. Although American Express regularly reviews credit exposure to specific clients and counterparties and to specific industries, countries and regions that American Express, Credco and the card issuers believe may present credit concerns, default risk may arise from events or circumstances that are difficult to foresee or detect, such as fraud. In addition, American Express’, Credco’s and the card issuers’ ability to manage credit risk may be adversely affected by legal or regulatory changes (such as bankruptcy laws and minimum payment regulations). Increased credit risk, whether resulting from underestimating the credit losses inherent in Credco’s portfolio of receivables and loans, deteriorating economic conditions, increases in the level of receivables, changes in the mix of businesses or otherwise, could require Credco to increase its provisions for losses and could have a material adverse effect on its results of operations and financial condition.

Market risk represents the loss in value of portfolios and financial instruments due to adverse changes in market variables, which could negatively impact its financial condition. Credco is primarily exposed to market risk from the impact of interest rate movements on its borrowings and interest-earning assets. If the rate of interest Credco pays on its borrowings increases, this will lead to Credco increasing the discount rate at which it offers to purchase receivables in order to achieve the minimum required 1.25 fixed charge coverage ratio; to the extent this discount rate is not acceptable to the seller, Credco’s ability to purchase receivables may be limited, resulting in an adverse impact on its results of operations.

7

Liquidity risk is defined as the inability to access cash and cash equivalents needed to meet business requirements and satisfy Credco’s obligations. If Credco is unsuccessful in managing its liquidity risk, it may maintain too much liquidity, which can be costly and limit financial flexibility, or it may be too illiquid, which could limit its growth opportunities, curtail operations or result in financial distress during a liquidity event. For additional information regarding Credco’s management of liquidity risk, see “Adverse financial market conditions may significantly affect Credco’s ability to meet liquidity needs, access to capital and cost of capital” above.

Credco considers operational risk to be the risk of not achieving business objectives due to inadequate or failed processes or information systems, poor data quality, human error or the external environment (i.e., natural disasters). Operational risk includes, among others, the risk that employee error or intentional misconduct could result in a material financial misstatement; a failure to monitor a third party’s compliance with a service level agreement or regulatory or legal requirements; or a failure to adequately monitor and control access to, or use of, data in the systems Credco grants to third-party service providers. As processes are changed, or new products and services are introduced, Credco may not fully appreciate or identify new operational risks that may arise from such changes. Compliance risk arises from the failure to adhere to applicable laws, rules, regulations and internal policies and procedures. Operational and compliance risks can expose Credco to reputational and legal risks as well as fines, civil money penalties or payment of damages and can lead to diminished business opportunities and diminished ability to expand key operations.

Credco is an indirect wholly owned subsidiary of American Express and any arrangements or agreements between the two entities may have different terms than would have been negotiated by independent, unrelated parties.

Credco is an indirect wholly owned subsidiary of American Express. As a result, the arrangements and agreements between Credco and its subsidiaries, on the one hand, and American Express and its other subsidiaries, principally the card issuers, on the other hand, may have different terms and provisions than would have been negotiated by independent, unrelated parties. The principal agreements between the parties are the receivables agreements between Credco, on the one hand, and TRS, on the other hand. Credco or its subsidiaries are also parties to agreements with card issuers in various international markets for the purchase or transfer of card receivables and for unsecured loans to card issuers. The agreements between Credco and the card issuers provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis and that, for example, the price at which receivables are sold to Credco or its subsidiaries be at fair market value (including consideration of changes in interest rates or significant changes in collectability). While there can be no assurance that the terms of these arrangements are exactly the same as would be negotiated between independent, unrelated parties, Credco and its subsidiaries are prohibited, under the terms of the indenture governing Credco’s senior debt securities, from engaging in transactions with any other American Express entities (such as the card issuers) on a basis that is materially less favorable to Credco or its subsidiaries than would be the case if the transaction were with an unrelated third party.

Credco and its subsidiaries are dependent on the card issuers that generate receivables.

Credco and its subsidiaries are dependent on the card issuers that generate receivables. Credco and its subsidiaries are parties to receivables agreements with the card issuers. These receivables agreements generally require that non-interest and interest-earning receivables be purchased at discount rates that are negotiated and determined at the time of purchase based upon the nature of the receivables. Credco and its subsidiaries are dependent upon these contractual arrangements. Lower levels of Card Member receivables and loans generated by the card issuers from which Credco and its subsidiaries purchase receivables would result in a reduction in the level of finance operations and a reduction in the revenues and net income of Credco and its subsidiaries.

Ongoing legal proceedings regarding provisions in American Express’ merchant contracts could have a material adverse effect on its business, result in additional litigation and/or arbitrations, subject it to substantial monetary damages and damage American Express’ reputation and brand.

The U.S. Department of Justice (DOJ) and certain states’ attorneys general brought an action against American Express alleging that the provisions in American Express’ card acceptance agreements with merchants that prohibit merchants from discriminating against American Express’ card products violate the U.S. antitrust laws. Following a non-jury trial in the case, the trial court found that the challenged provisions were anticompetitive and issued a final judgment entering a permanent injunction. Following American Express’ appeal of this judgment, the Court of Appeals for the Second Circuit reversed the trial court decision and directed the trial court to enter a judgment for American Express. Eleven of the 17 states that are party to the case filed a petition with the Supreme Court seeking a review of the Second Circuit’s decision. On October 16, 2017, the Supreme Court granted certiorari and oral argument was held on February 26, 2018. American Express is also a defendant in a number of actions and arbitration proceedings, including proposed class actions, filed by merchants that challenge the non-discrimination and honor-all-cards provisions in American Express’ card acceptance agreements and seek damages.

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An adverse outcome in these proceedings against American Express could have a material adverse effect on American Express’ business and results of operations, require American Express to change its merchant agreements in a way that could expose American Express’ cards to increased merchant steering and other forms of discrimination that could impair the Card Member experience, result in additional litigation and/or arbitrations, impose substantial monetary damages and damage its reputation and brand. Even if American Express was not required to change its merchant agreements, changes in Visa’s and MasterCard’s policies or practices as a result of legal proceedings, lawsuit settlements or regulatory actions pending against them could result in changes to its business practices and materially and adversely impact American Express’ profitability.

Tax legislative initiatives or challenges to American Express’ tax positions could adversely affect Credco’s results of operations and financial condition.

American Express is subject to income and other taxes in the United States and in various foreign jurisdictions. The laws and regulations related to tax matters are extremely complex and subject to varying interpretations. Although American Express believes its positions are reasonable, American Express is subject to audit by the Internal Revenue Service in the United States and by tax authorities in all the jurisdictions in which it conducts business operations. These tax authorities may determine that American Express owes additional taxes or apply existing laws and regulations more broadly, which could result in a significant increase in Credco’s liabilities for taxes and interest in excess of accrued liabilities.

New tax legislative initiatives may be proposed from time to time, which may impact Credco’s effective tax rate and could adversely affect Credco’s tax positions or tax liabilities. For example, the impacts of the Tax Cuts and Jobs Act in the United States resulted in a $858 million charge in the fourth quarter of 2017, representing Credco’s current estimate of taxes primarily on the deemed repatriation of certain overseas earnings and the remeasurement of U.S. deferred tax assets and liabilities. In addition, unilateral or multi-jurisdictional actions by various tax authorities, including an increase in tax audit activity, could have an adverse impact on Credco’s tax liabilities.

Changes in accounting principles or standards could adversely affect Credco’s reported financial results in a particular period, even if there are no underlying changes in the economics of the business.

Credco is subject to changes in and interpretations of financial accounting matters that govern the measurement of its performance, which could change the way Credco accounts for certain of its transactions even if it does not change the way in which it transacts. A change in accounting guidance can have a significant effect on Credco’s reported results, may retroactively affect previously reported results and could cause fluctuations in its reported results. For more information on recently issued accounting standards, see Note 1 to the Consolidated Financial Statements.

Item 1B.              UNRESOLVED STAFF COMMENTS

Not applicable.

Item 2. PROPERTIES

Credco neither owns nor leases any material physical properties.

Item 3. LEGAL PROCEEDINGS

There are no material pending legal proceedings to which Credco or its subsidiaries is a party or of which any of their property is the subject. Credco knows of no such proceedings being contemplated by government authorities.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

American Express, through its wholly owned subsidiary, TRS, owns all of the outstanding common stock of Credco. Therefore, there is no market for Credco’s common stock.

Credco did not pay any cash dividends to TRS in 2017 and 2016. For information about limitations on Credco’s ability to pay dividends, refer to Note 5 to the Consolidated Financial Statements.

Item 6.            SELECTED FINANCIAL DATA

(Millions)	2017			2016		2015		2014			2013
Operating Results
Revenues	$	1,087		$	718	$	755	$	929		$	1,007
Provisions for losses(a)		244			151		165		202			148
Interest expense (including to affiliates)		553			341		360		502			597
Pretax income		275			212		252		318			350
Income tax provision (benefit)(b)		878			15		38		(35	)		(96	)
Net (loss) income	$	(603	)	$	197	$	214	$	353		$	446
Balance Sheet
Cash and cash equivalents	$	196		$	1,211	$	173	$	74		$	86
Card Member receivables held for sale		―			―		24		―			―
Gross Card Member receivables		20,276			18,218		17,607		14,507			14,534
Reserves for losses, Card Member receivables		145			110		114		94			76
Gross Card Member loans		561			476		435		401			523
Reserves for losses, Card Member loans		5			5		4		3			4
Loans to affiliates and other(c)		14,527			10,659		14,262		15,303			11,340
Total assets		35,889			31,936		33,285		32,840			29,926
Short-term debt		1,308			2,993		2,120		769			200
Short-term debt to affiliates		5,997			4,559		5,439		4,334			3,583
Long-term debt		24,153			20,512		21,725		24,282			21,700
Long-term debt to affiliates		270			―		―		―			―
Shareholder’s equity		1,871			2,209		2,119		2,389			2,687
Cash dividends	$	―		$	―	$	115	$	342		$	441

(a) Effective December 1, 2015, did not reflect provisions related to the held for sale portfolio.

(b) Includes impact of the Tax Cuts and Jobs Act. Refer to Note 11 to the Consolidated Financial Statements.

(c) Includes loans to the joint ventures that issue American Express cards in certain countries (the American Express joint ventures) of $34 million, nil and $75 million as of December 31, 2017, 2016 and 2015, respectively.

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

Business Environment

Management’s discussion of the results of Credco is in the context of the following wider business environment for American Express.

American Express’ results for 2017 reflect a strong finish to its two-year game plan as it successfully executed against its key priorities of accelerating revenue growth, optimizing its investments and resetting its cost base. Billings and revenue performance were strong across American Express’ business segments and accelerated during the fourth quarter. American Express continued to invest in new products and benefits, new card acquisitions and expanding its merchant network, and it returned a significant amount of capital to its shareholders through share repurchases and dividends.

American Express’ strong performance in 2017 reflects benefits from the investments it has made in a variety of growth opportunities over the last several years. Although American Express continues to see some headwinds from regulation in markets around the world and intense competition, it remains focused on delivering differentiated value to its merchants, customers and business partners, while delivering appropriate returns to its shareholders.

Effective December 1, 2015, American Express transferred the Card Member loans and receivables related to its cobrand partnerships with JetBlue Airways Corporation and Costco Wholesale Corporation in the United States to Card Member loans and receivables held for sale (HFS) on its Consolidated Balance Sheets, the sales of which were completed on March 18, 2016 and June 17, 2016, respectively. For the periods from December 1, 2015 through the sale completion dates, the primary impacts beyond the HFS classification on the Consolidated Balance Sheets were to provisions for losses and credit metrics, which did not reflect amounts related to these HFS loans and receivables, as credit costs were reported in Other expenses through a valuation allowance adjustment. Since Credco owns participation interests in receivables purchased from American Express Receivables Financing Corporation VIII LLC (RFC VIII), Credco also sold back all of its participation interests in Card Member receivables HFS to RFC VIII.

Tax Cuts and Jobs Act

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the Tax Act). The Tax Act makes broad and complex changes to the U.S. federal corporate income tax rules that, beginning in 2018, will impact Credco’s income tax expense. Most notably, effective January 1, 2018, the Tax Act reduces the U.S. federal statutory corporate income tax rate (the “federal tax rate”) from 35 percent to 21 percent, introduces a territorial tax system in which future dividends paid from earnings outside the United States to a U.S. corporation are not subject to U.S. federal taxation and imposes new U.S. federal corporate income taxes on certain foreign operations.

Two provisions of the Tax Act drove a 2017 charge of $858 million, which impacted Credco’s earnings in the fourth quarter. In particular, the Tax Act imposes a one-time deemed repatriation tax on previously undistributed earnings of certain non-U.S. subsidiaries. In addition, the reduction of the federal statutory tax rate from 35 percent to 21 percent required Credco to remeasure its U.S. federal deferred tax assets and liabilities. The 2017 charge for these provisions reflects Credco’s best estimate based on information currently available and its current interpretation of the Tax Act. Refer to Note 11 to the Consolidated Financial Statements for additional information.

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Results of Operations

Net income depends largely on the volume of Card Member receivables and loans purchased, the discount rate used to determine purchase price, interest earned, interest expense, collectability of purchased Card Member receivables and loans, and income taxes.

Credco’s consolidated net income decreased by $800 million to a loss of $603 million, as compared to net income of $197 million for the same period in 2016. The year over year decrease in net income is driven by the increase in the tax provision due to U.S. tax reform.

Table 1: Total Revenues Summary

Years Ended December 31,					Change
(Millions, except percentages)	2017		2016		2017 vs. 2016
Discount revenue earned from purchased Card Member receivables and loans	$	760	$	471	$	289	61	%
Interest income from affiliates and other		279		207		72	35
Finance revenue		48		40		8	20
Total revenues	$	1,087	$	718	$	369	51	%

Total revenues

Discount revenue increased, due to higher discount rates as well as higher volumes of receivables purchased.

Interest income increased, primarily due to higher interest rates.

Finance revenue increased, primarily due to higher average outstanding Card Member loan balances during 2017.

Table 2: Total Expense Summary

Years Ended December 31,					Change
(Millions, except percentages)	2017		2016		2017 vs. 2016
Provisions for losses	$	244	$	151	$	93	62	%
Interest expense		495		317		178	56
Interest expense to affiliates		58		24		34	#
Other, net		15		14		1	7
Total expenses	$	812	$	506	$	306	60	%

# Denotes a variance greater than 100 percent.

Total expenses

Provisions for losses increased, primarily due to increase in volumes and higher net write-offs.

Interest expense increased, primarily due to higher LIBOR rates and higher average debt balances.

Interest expense to affiliates increased, primarily due to higher LIBOR rates.

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Income taxes

The effective tax rate for 2017 was 319.3 percent and reflects a substantial charge of $858 million related to the income tax effects of the Tax Act, which are required to be recorded in the period of enactment. The $858 million charge represents Credco’s current estimate of taxes primarily on the deemed repatriation of certain overseas earnings and the remeasurement of U.S. federal net deferred tax assets to the lower federal tax rate. Credco’s accounting for the impacts of the Tax Act is provisional and amounts may be revised in future periods as described in the SEC Staff Accounting Bulletin No. 118, which was issued on December 22, 2017 to provide guidance on the accounting for the effects of the Tax Act. Refer to Note 11 to the Consolidated Financial Statements for additional information.

Volume of Business

The following table shows substantially all Card Member receivables and Card Member loans purchased by Credco during each of the years indicated, together with Card Member receivables and Card Member loans owned by Credco as of the end of such years:

Table 3: Gross Card Member Receivables and Loans Purchased and Owned by Credco

(Billions)
	Volume of Gross Card Member						Gross Card Member
	Receivables and Loans Purchased						Receivables and Loans Owned
	For the Years Ended December 31,(a)						as of December 31,
Year	U.S.		Non-U.S.		Total		U.S.(b)		Non-U.S.		Total
2017	$	189	$	64	$	253	$	15	$	6	$	21
2016		160		59		219		14		5		19
2015		169		52		221		13		5		18
2014		173		44		217		12		3		15
2013		170		45		215		11		4		15

(a) Includes volumes related to the HFS portfolio for the years ended December 31, 2016 and 2015. In addition to the above activity, Credco also purchased new groups of Card Member receivables from TRS and certain of its subsidiaries and participation interests from affiliates, totaling $9.4 billion, $5.4 billion, $5.8 billion, $3.4 billion and $7.7 billion in 2017, 2016, 2015, 2014 and 2013, respectively.

(b) Effective December 1, 2015 did not reflect the HFS portfolio.

Card Member Receivables and Card Member Loans

As of December 31, 2017 and 2016, Credco owned $20.3 billion and $18.2 billion, respectively, of gross Card Member receivables. Card Member receivables represent amounts due on American Express charge card products and are recorded at the time they are purchased from the seller. Included in Card Member receivables are Credco Receivables Corporation’s (CRC) purchases of the participation interests from RFC VIII in conjunction with TRS’ securitization program. As of December 31, 2017 and 2016, CRC owned approximately $4.1 billion and $4.0 billion, respectively, of such participation interests.

As of December 31, 2017 and 2016, Credco owned gross Card Member loans totaling $561 million and $476 million, respectively. These loans generally represent revolving amounts due on American Express lending card products.

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The following table summarizes selected information related to the Card Member receivables portfolio for the years ended December 31:

Table 4: Selected Information Related to Card Member Receivables

(Millions, except percentages and where indicated)	2017			2016			2015			2014			2013
Total gross Card Member receivables(a)(b)	$	20,276		$	18,218		$	17,607		$	14,507		$	14,534
Loss reserves ― Card Member receivables(a)(b)	$	145		$	110		$	114		$	94		$	76
Loss reserves as a % of receivables		0.7	%		0.6	%		0.6	%		0.6	%		0.5	%
Average life of Card Member receivables (# in days)(c)		30			30			29			29			29

(a) Effective December 1, 2015 did not reflect the HFS portfolio.

(b) Refer to Notes 2 and 3 to the Consolidated Financial Statements for further discussion.

(c) Represents the average life of Card Member receivables owned by Credco, based upon the ratio of the average amount of both billed and unbilled receivables owned by Credco at the end of each month, during the years indicated, to the volume of Card Member receivables purchased by Credco.

Changes in Card Member Receivable and Card Member Loan Reserves for Losses

The following table presents the changes in the reserve for losses related to Card Member receivables and loans:

Table 5: Reserve for Losses related to Card Member receivables and loans

Years Ended December 31, (Millions, except percentages)	2017			2016			2015			2014			2013
Balance, January 1	$	115		$	118		$	97		$	80		$	88
Provisions		244			151			165			202			148
Other credits(a)		58			20			32			15			41
Net write-offs(b)		(204	)		(151	)		(161	)		(170	)		(152	)
Other debits(c)(d)		(63	)		(23	)		(15	)		(30	)		(45	)
Balance, December 31	$	150		$	115		$	118		$	97		$	80
Reserve for losses as a % of gross Card Member receivables and loans owned at December 31		0.7	%		0.6	%		0.7	%		0.7	%		0.5	%

(a) Primarily reserve balances applicable to new groups of Card Member receivables and loans purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables and loans purchased totaled $9.4 billion, $5.4 billion, $5.8 billion, $3.4 billion and $7.7 billion in 2017, 2016, 2015, 2014 and 2013, respectively.

(b) Net of recoveries of $96 million, $92 million, $101 million, $102 million and $115 million in 2017, 2016, 2015, 2014 and 2013, respectively.

(c) Primarily reserve balances applicable to participation interests in Card Member receivables sold to an affiliate and, for 2014, reserves applicable to Card Member receivables and loans sold to the American Express joint ventures following the termination of the agreements to purchase Card Member receivables and loans in the third quarter of 2014. Sales of these participation interests and Card Member receivables and loans totaled $9.4 billion, $5.7 billion, $2.6 billion, $3.4 billion and $9.1 billion in 2017, 2016, 2015, 2014 and 2013, respectively.

(d)2015 includes the impact of the transfer of reserves relating to the HFS portfolio, which was not significant.

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Loans to Affiliates and Other

Credco’s loans to affiliates and other represent floating-rate interest-bearing borrowings by American Express Company, other wholly owned subsidiaries of TRS and the joint ventures that issue American Express cards in certain countries. The components of loans to affiliates and other as of December 31 were as follows:

Table 6: Loans to Affiliates and Other

(Millions)	2017		2016
American Express Limited	$	3,847	$	―
American Express Services Europe Limited		2,747		2,484
Amex Bank of Canada		1,737		1,593
American Express Australia Limited		1,616		1,290
American Express International, Inc.		1,180		―
American Express Company		961		4,044
Amex Global Holdings C.V.		888		―
American Express Company (Mexico) S.A. de C.V.		812		765
American Express Bank (Mexico) S.A.		325		291
Alpha Card S.C.R.L./C.V.B.A		138		―
American Express International, Inc.– Branch – Singapore		124		107
American Express International (NZ), Inc.		80		85
Amex Funding Management (Europe) Limited		38		―
American Express Saudi Arabia (C) JSC		34		―
Total(a)	$	14,527	$	10,659

(a) As of December 31, 2017 and 2016, approximately $5.0 billion and $3.3 billion, respectively, were collateralized by the underlying Card Member receivables and loans transferred with recourse.

To more effectively manage inter-affiliate funding, Credco entered into new loan agreements in July 2017 with American Express Limited and American Express International, Inc. The new loans were funded by the assignment of its existing loan to American Express Company and outstanding due from affiliate balance with TRS. Further, Credco borrowed from American Express Company under an existing master note arrangement to meet its funding requirements.

On November 27, 2017, Credco implemented the restructuring of the financing arrangement with Amex Bank of Canada to enhance funding flexibility and effectiveness. The former financing arrangement, which had been in the form of an unsecured loan to the affiliate, has been replaced by a collateralized loan arrangement.

Due from/to Affiliates

As of December 31, 2017 and 2016, amounts due from affiliates were $0.2 billion and $1.0 billion, respectively. As of December 31, 2017 and 2016, amounts due to affiliates were $2.0 billion and $1.5 billion, respectively. These amounts relate primarily to timing differences from the purchase of Card Member receivables, net of remittances from TRS, as well as from operating activities. As of December 31, 2017, due to affiliates primarily represents tax liability on account of the Tax Act. Refer to Note 11 to the Consolidated Financial Statements.

Restricted Cash with Affiliates

As of December 31, 2017 and 2016, the amount of interest-bearing restricted cash was $100 million and nil, respectively, which represents cash placed with Amex Bank of Canada relating to the new collateralized loanarrangement for transfer of Card Member loans described above and has been included under “Other assets” on the Consolidated Balance Sheets.

Short-term Debt to Affiliates

Short-term debt to affiliates consists primarily of interest-bearing master notes repayable on demand. Credco does not expect any changes to its short-term funding strategies with affiliates. Components of short-term debt to affiliates as of December 31 were as follows:

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Table 7: Short-term Debt to Affiliates

(Millions)	2017		2016
AE Exposure Management Limited	$	4,548	$	3,361
American Express Europe LLC		765		515
American Express Swiss Holdings GmbH		444		376
American Express Holdings Netherlands CV		192		192
Accertify, Inc.		48		42
Amex Funding Management (Europe) Limited		―		73
Total	$	5,997	$	4,559

Long-term Debt to Affiliates

Long-term debt to affiliates represents an unsecured amount due to LB Luxembourg Two S.a.r.l amounting to $270 million and nil as of December 31, 2017 and 2016, respectively, payable by December 2020.

Service Fees to Affiliates

Credco’s affiliates do not explicitly charge Credco a service fee for the servicing of receivables purchased. Instead Credco receives a lower discount rate on the receivables purchased than would be the case if servicing fees were charged. If a servicing fee had been charged by these affiliates from which Credco purchases receivables, fees to affiliates for servicing receivables would have been approximately $234 million and $253 million for the years ended December 31, 2017 and 2016, respectively. Correspondingly, discount revenue would have increased by approximately the same amounts in these periods.

Sources of Funds

Credco’s business is financed by borrowings consisting principally of issuances of term debt, intercompany borrowings, and issuances of commercial paper, as well as cash provided through operations. Credco has not issued asset-backed securities (although Credco has the ability to sell receivables to TRS, which in turn can securitize them). For a more detailed discussion of Credco’s funding strategies, refer to Consolidated Capital Resources and Liquidity ― Funding Strategy.

The weighted-average effective interest rates on an annual basis of all borrowings, after giving effect to commitment fees under lines of credit and the impact of interest rate swaps, during the following years were as follows:

Table 8: Weighted-Average Effective Interest Rate

Year	Weighted-Average Effective Interest Rate
2017		1.78	%
2016		1.28	%
2015		1.25	%
2014		1.74	%
2013		2.21	%

Refer to Notes 4 and 9 to the Consolidated Financial Statements for additional information about Credco’s short-term and long-term debt, including lines of credit.

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CONSOLIDATED CAPITAL RESOURCES AND LIQUIDITY

Credco’s balance sheet management objectives are to maintain:

 A broad, deep and diverse set of funding sources to finance its assets and meet operating requirements; and

 Liquidity programs that enable Credco to continuously meet expected future financing obligations and business requirements for at least a twelve-month period, even in the event it is unable to continue to raise new funds under its traditional funding programs during a substantial weakening in economic conditions.

Funding Strategy

American Express has in place an enterprise-wide funding policy. The principal funding objective is to maintain broad and well-diversified funding sources to allow American Express, including Credco, to meet its maturing obligations, cost-effectively finance current and future asset growth in its global businesses as well as to maintain a strong liquidity profile. The diversity of funding sources by type of instrument, by maturity and by investor base, among other factors, provides additional insulation from the impact of disruptions in any one type of instrument, maturity or investor. The mix of Credco’s funding in any period will seek to achieve cost efficiency consistent with both maintaining diversified sources and achieving its liquidity objectives. Credco’s funding strategy and activities are integrated into American Express’ asset-liability management activities.

Credco has historically relied on the debt capital markets to fulfill a substantial amount of its funding needs. It has a variety of funding sources available to access the debt capital markets, including senior unsecured debentures and commercial paper. One of the principal tenets of Credco’s funding strategy is to issue debt with a wide range of maturities to distribute its refinancing requirements across future periods. Credco continues to assess its funding needs and investor demand and could change the mix of its existing sources as well as add new sources to its funding mix. Credco’s funding plan is subject to various risks and uncertainties, such as the disruption of financial markets or reductions in market capacity and demand for securities offered by Credco as well as any regulatory changes or changes in its long-term or short-term credit ratings. Many of these risks and uncertainties are beyond Credco’s control.

Credco’s funding strategy is designed, among other things, to maintain appropriate and stable unsecured debt ratings from the major credit rating agencies: Dominion Bond Rating Services (DBRS), Fitch Ratings (Fitch), Moody’s Investor Services (Moody’s) and Standard & Poor’s (S&P). Such ratings help support Credco’s access to cost-effective unsecured funding as part of its overall funding strategy.

Table 9: Unsecured Debt Ratings

Credit Agency	Short-Term Ratings	Long-Term Ratings	Outlook
DBRS	R-1 (middle)	A (high)	Stable
Fitch	F1	A	Stable
Moody’s	Prime 1	A2	Stable
S&P	A-2	A-	Stable

Downgrades in the ratings of Credco’s unsecured debt could result in higher funding costs, as well as higher fees related to borrowings under its unused lines of credit. Declines in credit ratings could also reduce Credco’s borrowing capacity in the unsecured term debt and commercial paper markets. The overall level of the funding provided by Credco to other American Express affiliates is impacted by a variety of factors, among them Credco’s ratings. To the extent that Credco is subject to a higher cost of funds, whether due to an adverse ratings action or otherwise, the affiliates could continue to use, or could increase their use of, alternative sources of funding for their receivables that offer better pricing.

Short-term Funding Programs

Short-term borrowings, such as commercial paper, is defined as debt with original contractual maturity of twelve months or less. Credco’s issuance and sale of commercial paper is primarily utilized for working capital needs. The amount of short-term borrowings issued in the future will depend on Credco’s funding strategy, its needs and market conditions. As of December 31, 2017 and 2016, Credco had $1.2 billion and $3.0 billion, respectively, of commercial paper outstanding. The average commercial paper outstanding was $1.1 billion and $0.5 billion for the years ended December 31, 2017 and 2016, respectively.

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Long-term Debt Programs

During 2017, Credco issued $8.5 billion of unsecured debt securities with maturities ranging from 2 to 10 years. Long-term debt is raised through the offering of debt securities both in and outside the United States. Long-term debt is generally defined as any debt with original contractual maturity greater than twelve months. Credco had the following long-term debt outstanding as of December 31:

Table 10: Long-Term Debt Outstanding

(Billions)	2017		2016
Long-term debt outstanding (a)	$	24.2	$	20.5
Average long-term debt (b)	$	24.3	$	21.4

(a) The outstanding balances include (i) unamortized discount, premium and fees (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.

(b) Average long-term debt outstanding during the twelve months ended December 31, 2017 and 2016, respectively.

Refer to Note 4 to the Consolidated Financial Statements for further details on total year-end interest rates on debt and maturities.

Credco has the ability to issue debt securities under shelf registrations filed with the Securities and Exchange Commission (SEC). The latest shelf registration statement filed with the SEC is for an unspecified amount of debt securities. As of December 31, 2017 and 2016, Credco had $23.9 billion and $20.2 billion, respectively, of debt securities outstanding, issued under the SEC registration statement.

Credco has also established a program in Australia for the issuance of debt securities of up to approximately $4.7 billion (AUD $6 billion). During 2017, no notes were issued under this program. As of December 31, 2017 and 2016, the entire amount of approximately $4.7 billion and $4.3 billion, respectively, of notes was available for issuance under this program and there were no outstanding notes as of such dates.

Credco has also established a medium-term note program in Canada providing for the issuance of notes by American Express Canada Credit Corporation (AECCC), an indirect wholly owned subsidiary of Credco. The prospectus for this program expired in September 2014. All notes issued by AECCC under this program are guaranteed by Credco. As of December 31, 2017 and 2016, AECCC had $0.5 billion and $0.4 billion, respectively, of medium-term notes outstanding under this program. AECCC’s financial results are included in the consolidated financial results of Credco.

Credco’s 2017 debt issuances were as follows:

Table 11: Debt Issuances

(Billions)	2017
Fixed Rate Senior Notes (weighted-average coupon of 2.56 %)	$	7.3
Floating Rate Senior Notes (3-month LIBOR plus 45 basis points)		1.2
Total	$	8.5

The covenants of debt instruments issued by Credco impose the requirement that Credco maintain a minimum consolidated net worth of $50 million, which limits the amount of dividends Credco can pay to its parent. During 2017 and 2016, Credco did not pay any cash dividends to TRS. When considering the amount of dividends it pays, Credco takes into account the amount of capital required to maintain capital strength, support business growth, and meet the expectations of debt investors. To the extent excess capital is available, it may be distributed to TRS, Credco’s parent company, via dividends. There are no significant restrictions on the ability of Credco to obtain funds from its subsidiaries by dividend or loan. Additionally, there are no limitations on the amount of debt that can be issued by Credco, provided it maintains the minimum required fixed charge coverage ratio of 1.25. As of December 31, 2017, Credco was in compliance with all restrictive covenants contained in its debt agreements.

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Liquidity Management

American Express, including Credco, incurs liquidity risk that arises in the course of its activities. The liquidity objective is to maintain access to a diverse set of on- and off-balance sheet liquidity sources. American Express and its subsidiaries, including Credco, seek to maintain liquidity sources, even in the event they are unable to raise new funds under their regular funding programs during a substantial weakening in economic conditions, in amounts sufficient to meet their expected future financial obligations and business requirements for liquidity for a period of at least twelve months. General principles and the overall framework for managing liquidity risk across American Express on an enterprise-wide basis are set out in American Express’ Liquidity Risk Policy.

The liquidity risk exposure could arise from a wide variety of scenarios. The liquidity management strategy thus includes a number of elements, including, but not limited to:

 Maintaining diversified funding sources;

 Maintaining unencumbered liquid assets and off-balance sheet liquidity sources;

 Projecting cash inflows and outflows under a variety of economic and market scenarios;

 Establishing clear objectives for liquidity risk management, including compliance with regulatory requirements; and

 Incorporating liquidity risk management as appropriate into American Express’ capital adequacy framework.

Credco regularly accesses liquidity through its various funding programs, and maintains a variety of contingent sources of cash and financing, such as access to securitizations of Card Member receivables through sales of receivables to TRS for securitization by RFC VIII and the American Express Issuance Trust II, as well as a committed bank facility.

As of December 31, 2017, Credco had cash and cash equivalents of approximately $0.2 billion. In addition to its actual holdings of cash and cash equivalents, Credco maintains access to additional liquidity, in the form of cash and cash equivalents held by certain affiliates, through intercompany loan agreements.

Committed Bank Credit Facility

Credco maintained a U.S. dollar denominated committed syndicated bank credit facility as of December 31, 2017 of $3.5 billion, which expires on October 16, 2020. As of December 31, 2017, no amounts were drawn on this facility. The capacity of the facility mainly served to further enhance Credco’s contingent funding resources. The availability of this facility is subject to Credco’s compliance with certain financial covenants that require maintenance of a 1.25 ratio of earnings to fixed charges.

The committed syndicated bank credit facility does not contain a material adverse change clause, which might otherwise preclude borrowing under the credit facility, nor is it dependent on Credco’s credit rating.

Table 12: Ratio of Earnings to fixed charges for Credco and Ratio of Earnings to combined fixed charges and preferred stock dividends for American Express

	Credco		American Express
2017		1.50		4.05
2016		1.62		5.38
2015		1.70		5.54

OFF-BALANCE SHEET ARRANGEMENTS

To mitigate counterparty credit risk related to derivatives, Credco may accept non-cash collateral from its derivatives counterparties. There was no such non-cash collateral as of December 31, 2017 and 2016, respectively.

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RISK MANAGEMENT

Credco’s risk management objective is to identify, monitor and appropriately control its risk exposures. Credco’s risk management oversight is performed through internal and independent oversight functions. Risk management governance at Credco begins with the American Express Enterprise-wide Risk Management (ERM) Policy, approved by the Risk Committee of the American Express Board of Directors (the Risk Committee). The ERM policy governs risk governance, risk oversight and risk appetite for risks, including individual credit risk, institutional credit risk, market risk, liquidity risk, operational risk, reputational risk, compliance risk, model risk, asset/liability risk and strategic and business risks. Risk appetite defines the authorized risk limits to control exposures within American Express’ risk capacity and risk tolerance, including stressed forward-looking scenarios. In addition, it establishes principles for risk taking in the aggregate and for each risk type, and is supported by a comprehensive system for monitoring limits, escalation triggers and assessing control programs.

The Risk Committee reviews and concurs in the appointment, replacement, performance and compensation of American Express’ Chief Risk Officer and receives regular updates from the Chief Risk Officer on key risks, transactions and exposures.

The Risk Committee reviews American Express’ risk profile against the tolerance specified in the Risk Appetite Framework, including significant risk exposures, risk trends in American Express’ portfolios and major risk concentrations.

The Audit and Compliance Committee of the American Express Board of Directors reviews and approves compliance policies, which include American Express’ Compliance Risk Tolerance Statement. In addition, the Audit and Compliance Committee reviews the effectiveness of the American Express Corporate-wide Compliance Risk Management Program. More broadly, this committee is responsible for assisting the Board in its oversight responsibilities relating to the integrity of financial statements and financial reporting process; internal and external auditing, including the qualifications and independence of the independent registered public accounting firm and the performance of internal audit services function; and the integrity of systems of internal accounting and financial controls.

The Audit and Compliance Committee provides oversight of the American Express Internal Audit Group. The Audit and Compliance Committee reviews and concurs in the appointment, replacement, performance and compensation of American Express’ Chief Audit Executive and approves Internal Audit’s annual audit plan, charter, policies and budget. The Audit and Compliance Committee also receives regular updates on the audit plan’s status and results including significant reports issued by Internal Audit and the status of American Express’ corrective actions.

There are several internal management committees, including the Enterprise-wide Risk Management Committee (ERMC), chaired by the American Express Chief Risk Officer. The ERMC is the highest-level management committee to oversee all firm-wide risks and is responsible for risk governance, risk oversight and risk appetite. It maintains the enterprise-wide risk appetite framework and monitors compliance with limits and escalations defined in it. The ERMC oversees implementation of risk policies across American Express, including Credco, with approval by the appropriate board committee. The ERMC reviews key risk exposures, trends and concentrations, significant compliance matters, and provides guidance on the steps to monitor, control and report major risks.

As defined in the ERM policy, American Express follows the “three lines of defense” approach to risk management. The first line of defense comprises functions and management committees directly initiating risk taking. Business unit presidents, the Chief Credit Officer, Chief Market Risk Officer and Functional Risk Officer are part of the first line of defense. The second line comprises independent functions overseeing risk taking activities of the first line. The Chief Risk Officer, the Chief Compliance & Ethics Officer, the Chief Operational Risk Officer and certain control groups, both at the enterprise level and within regulated entities, are part of the second line of defense. The global risk oversight team oversees the policies, strategies, frameworks, models, processes and capabilities deployed by the first line teams and provides challenges and independent assessments on how the first line of defense is managing risks.

American Express Internal Audit Group constitutes the third line of defense, and provides independent assessments and effective challenge of the first and second lines of defense.

In addition, the Asset-Liability Committee, chaired by American Express’ Chief Financial Officer, is responsible for managing market, liquidity, asset/liability risk capital and resolution planning.

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Credit Risk Management Process

Credit risk is defined as the risk of loss due to obligor or counterparty default or changes in the credit quality of a security. American Express manages the overall credit risk exposure associated with the Card Member receivables and loans purchased by Credco. Credco is exposed to credit risk through the Card Member receivables and Card Member loans it purchases generally without recourse, as well as through its participation interests in Card Member receivables. Since Credco’s portfolio consists of millions of borrowers and individual exposures across multiple geographies, occupations, and social segments, its risk is reduced through diversification. A loss distribution is characterized by a higher frequency but manageable severity that is more closely linked to general economic and legal conditions than by borrower-specific events. Receivable and loan purchase decisions and the related discount pricing are impacted by the overall credit risk considerations inherent in Card Member receivables and Card Member loans.

Credit risk associated with Credco’s derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. To mitigate such risk, Credco’s counterparties are all required to be rated as investment grade. Additionally, Credco enters into master netting agreements with its counterparties wherever practical.

Operational Risk Management Process

Operational risk is the risk of not achieving business objectives due to inadequate or failed processes, people, or information systems, or the external environment, including failures to comply with laws and regulations. Operational risk is inherent in all business activities and can impact an organization through direct or indirect financial loss, brand damage, customer dissatisfaction, or legal and regulatory penalties.

To appropriately measure and manage operational risk, American Express has implemented a comprehensive operational risk framework that is defined in the Operational Risk Management Policy approved by the Risk Committee. The Operational Risk Management Committee (ORMC), chaired by the Chief Operational Risk Officer provides governance for the operational risk framework and coordinates with all control groups on effective risk assessments and controls and oversees the preventive, responsive and mitigation efforts by Operational Excellence teams in the business units and staff groups, including Credco.

American Express uses the operational risk framework to identify, measure, monitor and report inherent and emerging operational risks. This framework, supervised by the ORMC, consists of (a) operational risk event capture, (b) a project office to coordinate issue management and control enhancements, (c) key risk indicators such as customer complaints or pre-implementation test metrics, and (d) process and entity-level risk assessments.

The framework requires the assessment of operational risk events to determine root causes, impact to customers and/or American Express, and resolution plan accountability to correct any defect, remediate customers, and enhance controls and testing to mitigate future issues. The impact is assessed from an operational, financial, brand, regulatory compliance and legal perspective.

Compliance Risk Management Process

American Express defines compliance risk as the risk of legal or reputational harm, fines, monetary penalties and payment of damages or other forms of sanction as a result of non-compliance with applicable laws, regulations, rules or standards of conduct.

American Express views its ability to effectively mitigate compliance risk as an important aspect of its business model. American Express’ Global Compliance and Ethics organization is responsible for establishing and maintaining American Express’ corporate-wide Compliance Risk Management Program. Pursuant to this program, American Express seeks to manage and mitigate compliance risk by assessing, controlling, monitoring, measuring and reporting the legal and regulatory risks to which it is exposed.

American Express has a comprehensive Anti-Money Laundering program that monitors and reports suspicious activity to the appropriate government authorities. As part of that program, the Global Risk Oversight team provides independent risk assessment of the models and rules used by the Anti-Money Laundering team. In addition, the Internal Audit Group reviews the processes for practices consistent with regulatory guidance.

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Market Risk Management Process

Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Credco’s market risk exposures include:

 Interest rate risk in its funding activities; and

 Foreign exchange risk related to transactions, funding, investments and earnings in currencies other than the U.S. dollar.

American Express’ Asset Liability Management (ALM) and Market Risk policies establish the framework that guides and governs market risk management for American Express and its subsidiaries, including Credco, with clear quantitative limits and escalation triggers. These policies are approved by the Risk Committee of the American Express Board of Directors or Market Risk Management Committee.

Market risk is managed by the American Express Market Risk Management Committee. The Market Risk Oversight Officer provides an independent risk assessment and oversight over the policies and exposure management for market risk and ALM activities as well as overseeing compliance with the Volcker Rule and other regulatory requirements. Market risk management is also guided and governed by policies covering the use of derivative financial instruments, funding, liquidity and investments.

Interest rate risk arises through the funding of Card Member receivables and Card Member loans purchased with variable-rate borrowings. Interest rate exposure can vary over time through, among other things, the proportion of Credco’s total funding provided by variable- and fixed-rate debt. In addition, interest rate swaps are used from time to time to effectively convert debt issuance to (or from) variable-rate, from (or to) fixed-rate. Credco does not engage in derivative financial instruments for trading purposes. Use of derivative financial instruments is incorporated into the discussion below as well as Note 6 to Credco’s Consolidated Financial Statements.

Given the nature of Credco’s business model, where Credco includes its costs of funding in both the calculation of the discount at which Credco offers to purchase receivables and in the calculation of the interest at which it lends to affiliates and where such discount and interest is determined to maintain Credco’s required minimum fixed charge coverage ratio of 1.25, there would be minimal detrimental effect on Credco’s pretax earnings of a hypothetical 100 basis point increase in interest rates.

Foreign exchange exposures arise in two principal ways: 1) funding foreign currency Card Member receivables and loans in U.S. dollars and 2) Foreign currency (equity and earnings) in subsidiaries outside the United States.

Credco’s foreign exchange risk is managed primarily by entering into foreign exchange spot transactions or hedged with foreign exchange forward contracts when the hedge costs are economically justified and in notional amounts designed to offset pretax impacts from currency movements in the period in which they occur.

As of December 31, 2017 and 2016, foreign currency hedge instruments with total notional amounts of approximately $14 billion and $12 billion were outstanding, respectively. Derivative hedging activities related to balance sheet exposures and foreign currency earnings generally do not qualify for hedge accounting; however, derivative hedging activities related to translation exposure of foreign subsidiary equity qualify for net investment hedge accounting.

With respect to foreign currency balance sheet exposures, including related foreign exchange forward contracts and swaps outstanding, the effect on Credco’s earnings of a hypothetical 10 percent change in the value of the U.S. dollar would be immaterial as of December 31, 2017.

Funding and Liquidity Risk Management Process

Liquidity risk is defined as the inability of Credco to meet its ongoing financial and business obligations as they become due at a reasonable cost.

American Express’ Liquidity Risk Policy establishes the framework that guides and governs liquidity risk management.

Liquidity risk for American Express as a whole is managed by the Funding and Liquidity Committee. In addition, the Market Risk Oversight Officer provides independent oversight of liquidity risk management.

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Liquidity risk is managed at an aggregate American Express level as well as at certain subsidiaries, including Credco, in order to ensure that sufficient and accessible liquidity resources are maintained. American Express manages liquidity risk by maintaining access to a diverse set of cash, readily-marketable securities and contingent sources of liquidity, such that it can continuously meet its business requirements and expected future financing obligations for at least a twelve-month period, even in the event it is unable to raise new funds under its regular funding programs during a substantial weakening in economic conditions. The Funding and Liquidity Committee reviews forecasts of American Express aggregate cash positions and financing requirements, approves funding plans designed to satisfy those requirements under normal and stressed conditions, establishes guidelines to identify the amount of liquidity resources required and monitors positions and determines any actions to be taken.

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CRITICAL ACCOUNTING ESTIMATES

Refer to Note 1 to the Consolidated Financial Statements for a summary of Credco’s significant accounting policies. Certain of Credco’s accounting policies requiring significant management assumptions and judgments are as follows:

Reserves for Card Member Losses

Reserves for Card Member losses represent management’s best estimate of the probable losses inherent in Credco’s outstanding portfolio of Card Member receivables and loans, as of the balance sheet date.

In estimating these losses, American Express uses statistical and analytical models that analyze portfolio performance and reflect its judgment regarding the quantitative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates, loss emergence periods and average losses over an appropriate historical period, as well as expected future recoveries. American Express also considers whether to adjust the quantitative reserve for certain external and internal qualitative factors that may increase or decrease the reserves for losses on Card Member receivables and loans.

The process of estimating these reserves requires a high degree of judgment. To the extent historical credit experience, updated for any external and internal qualitative factors such as environmental trends, is not indicative of future performance, actual losses could differ significantly from management’s judgments and expectations, resulting in either higher or lower future provisions for Card Member losses in any quarter.

As of December 31, 2017, a 10 percent increase in Credco’s estimate of losses inherent in the outstanding portfolio of Card Member receivables and loans, evaluated collectively for impairment, would increase reserves for losses with a corresponding change to provisions for losses by approximately $15 million. This sensitivity analysis is provided as a hypothetical scenario to assess the sensitivity of the provisions for losses. It does not represent Credco’s expectations for losses in the future, nor does it include how other portfolio factors such as delinquency-based loss migration rates or recoveries, or the amount of outstanding balances, may impact the level of reserves for losses and the corresponding impact on the provisions for losses.

Fair Value Measurement

Credco’s derivative instruments are carried at fair value on the Consolidated Balance Sheets, which require management to make assumptions and apply judgments when assessing fair value.

The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability by utilizing the three-level hierarchy of inputs to valuation techniques used to measure fair value. When available, Credco uses quoted market prices to determine fair value (Level 1). If quoted market prices are not available, Credco will measure fair value based on pricing models with significant observable inputs (Level 2). Credco does not have any financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3). For additional information on Credco’s fair value hierarchy, refer to Note 7 to the Consolidated Financial Statements.

Credco’s primary derivative instruments are interest rate swaps and foreign currency forward agreements.

The fair value of Credco’s derivative instruments is estimated internally by using third-party pricing models, where the inputs to those models are readily observable from actively quoted markets. For additional information on Credco’s derivatives and hedging activities, refer to Note 6 to the Consolidated Financial Statements.

In the measurement of fair value for Credco’s derivative instruments, although the underlying inputs used in the pricing models are based on observable markets inputs, the pricing models do entail a certain amount of subjectivity, and therefore differing judgments in the underlying inputs, or how they are modeled, could result in a different estimate of fair value. While Credco relies on the third-party pricing models, it reaffirms its understanding of the valuation techniques at least annually and validate the valuation output on a quarterly basis.

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Income Taxes

As a member of the consolidated federal income tax return of American Express, Credco is subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which Credco operates. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. In establishing a provision for income tax expense, Credco must make judgments about the application of inherently complex tax laws.

In particular, the Tax Act is complex and requires interpretation of certain provisions to estimate the impact on Credco’s income tax expense. The estimates are based on the information available and Credco’s current interpretation of the Tax Act, and may change due to changes in interpretations and assumptions Credco makes and additional guidance or context from the Internal Revenue Service, the U.S. Treasury Department, the Financial Accounting Standards Board or others, regarding the Tax Act. As a result, actual income tax expense could differ significantly from Credco’s estimates. Refer to Note 11 to the Consolidated Financial Statements for additional information.

Unrecognized Tax Benefits

Credco establishes a liability for unrecognized tax benefits, which are the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized in the financial statements.

In establishing a liability for an unrecognized tax benefit, assumptions may be made in determining whether, and the extent to which, a tax position should be sustained. A tax position is recognized only when it is more likely than not to be sustained upon examination by the relevant taxing authority, based on its technical merits. The amount of tax benefit recognized is the largest benefit that management believes is more likely than not to be realized on ultimate settlement. As new information becomes available, Credco evaluates its tax positions and adjusts its unrecognized tax benefits, as appropriate.

Tax benefits ultimately realized can differ from amounts previously recognized due to uncertainties, with any such differences generally impacting the provision for income tax.

Deferred Tax Asset Realization

Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using the enacted tax rates expected to be in effect for the years in which the differences are expected to reverse.

Since deferred taxes measure the future tax effects of items recognized in the Consolidated Financial Statements, certain estimates and assumptions are required to determine whether it is more likely than not that all or some portion of the benefit of a deferred tax asset will not be realized. In making this assessment, management analyzes and estimates the impact of future taxable income, reversing temporary differences and available tax planning strategies. These assessments are performed quarterly, taking into account any new information.

Changes in facts or circumstances can lead to changes in the ultimate realization of deferred tax assets due to uncertainties.

OTHER MATTERS

Recently Issued Accounting Standards

Refer to the Recently Issued Accounting Standards section of Note 1 to the Consolidated Financial Statements.

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Cautionary Note Regarding Forward-Looking Statements

Various statements have been made in this Annual Report on Form 10-K that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may also be made in Credco’s other reports filed with or furnished to the Securities and Exchange Commission (SEC) and in other documents. In addition, from time to time, Credco, through its management, may make oral forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such statements. The words “believe,” “expect,” “estimate,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely” and similar expressions are intended to identify forward-looking statements. Credco cautions you that the risk factors described above and other factors described below are not exclusive. There may also be other risks that Credco is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Credco undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from Credco’s forward-looking statements include, but are not limited to, the following:

 credit trends, which will depend in part on the economic environment, including, among other things, the housing market and the rates of bankruptcies, which can affect spending on card products and debt payments by individual and corporate customers;

 the effectiveness of Credco’s risk management policies and procedures, including Credco’s ability to accurately estimate the provisions for losses in Credco’s outstanding portfolio of Card Member receivables and loans, and operational risk;

 fluctuations in foreign currency exchange rates;

 negative changes in Credco’s credit ratings, which could result in decreased liquidity and higher borrowing costs;

 changes in laws or government regulations affecting American Express’ business, including the potential impact of regulations adopted by bank regulators relating to certain credit and charge card practices;

 the effect of fluctuating interest rates, which could affect Credco’s borrowing costs and have an adverse effect on the market price of notes issued by Credco;

 the impact on American Express’ business resulting from continuing geopolitical uncertainty (including potential impacts resulting from the U.S. Administration and the proposed exit of the United Kingdom from the European Union);

 the impact on American Express’ business of changes in the substantial and increasing worldwide competition in the payments industry;

 the impact on American Express’ business that could result from litigation such as class actions or proceedings brought by governmental and regulatory agencies (including the lawsuit filed against American Express by the U.S. Department of Justice and certain states’ attorneys general and the review of the case by the U.S. Supreme Court);

 Credco’s ability to satisfy its liquidity needs and execute on its funding plans, which will depend on, among other things, Credco’s future business growth, the impact of global economic, political and other events on market capacity, Credco’s credit ratings, demand for securities offered by Credco, performance by Credco’s counterparties under its bank credit facilities and other lending facilities, and regulatory changes;

 Credco’s tax rate remaining in line with current expectations, which could be impacted by, among other things, changes in interpretations and assumptions Credco has made and actions Credco may take as a result of the Tax Act, Credco’s geographic mix of income, further changes in tax laws and regulation, unfavorable tax audits and other unanticipated tax items; and the impact of accounting changes and reclassifications; and

 the implementation of legislation and additional guidance or context from the Internal Revenue Service, the U.S. Treasury Department, state and foreign taxing authorities, the Financial Accounting Standards Board or others regarding the Tax Act, and any future changes or amendments to that legislation.

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Item 7A.              QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Refer to “Risk Management” under “MD&A” for quantitative and qualitative disclosures about market risk.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Management’s Report on Internal Control over Financial Reporting

Credco’s management is responsible for establishing and maintaining adequate internal control over financial reporting.

Credco’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America (GAAP), and includes those policies and procedures that:

 Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of Credco;

 Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of Credco are being made only in accordance with authorizations of management and directors of Credco; and

 Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Credco’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Credco’s management assessed the effectiveness of Credco’s internal control over financial reporting as of December 31, 2017. In making this assessment, Credco’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated Framework (2013).

Based on management’s assessment and those criteria, management has concluded that, as of December 31, 2017, Credco’s internal control over financial reporting is effective.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholder of

American Express Credit Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of American Express Credit Corporation and its subsidiaries (the “Company”) as of December 31, 2017 and 2016, and the related consolidated statements of income, comprehensive income, cash flows and shareholder’s equity for each of the three years in the period ended December 31, 2017, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP, PricewaterhouseCoopers Center, 300 Madison Avenue, New York, NY 10017

T: (646) 471 3000, F: (646) 471 8320, www.pwc.com/us

Significant Transactions with Related Parties

As discussed in Note 9 to the consolidated financial statements, the Company has entered into significant related party transactions with affiliates.

New York, New York

March 1, 2018

We have served as the Company’s auditor since 2005.

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(Item 15 (a))

AMERICAN EXPRESS CREDIT CORPORATION

INDEX TO CONSOLIDATED FINANCIAL STATEMENTSCOVERED BY REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Consolidated Financial Statements	Page
Consolidated Statements of Income – For the Years Ended December 31, 2017, 2016 and 2015	30
Consolidated Statements of Comprehensive Income – For the Years Ended December 31, 2017, 2016 and 2015	31
Consolidated Balance Sheets – December 31, 2017 and 2016	32
Consolidated Statements of Cash Flows – For the Years Ended December 31, 2017, 2016 and 2015	33
Consolidated Statements of Shareholder’s Equity – For the Years Ended December 31, 2017, 2016 and 2015	34
Notes to Consolidated Financial Statements
Note 1 – Summary of Significant Accounting Policies	35
Note 2 – Card Member Receivables and Loans	38
Note 3 – Reserves for Losses	41
Note 4 – Debt	42
Note 5 – Restrictions as to Dividends and Limitations on Indebtedness	43
Note 6 – Derivatives and Hedging Activities	43
Note 7 – Fair Values	47
Note 8 – Variable Interest Entity	50
Note 9 – Transactions with Affiliates	50
Note 10 – Changes in Accumulated Other Comprehensive Income	53
Note 11 – Income Taxes	54
Note 12 – Significant Credit Concentrations	57
Note 13 – Geographic Regions	58
Note 14 – Quarterly Financial Data (Unaudited)	58

All other schedules are omitted since the required information is not present or because the information required is included in the Consolidated Financial Statements or notes thereto.

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AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

Years Ended December 31 (Millions)	2017			2016		2015
Revenues
Discount revenue earned from purchased Card Member receivables and loans	$	760		$	471	$	479
Interest income from affiliates and other		279			207		246
Finance revenue		48			40		30
Total revenues		1,087			718		755
Expenses
Provisions for losses		244			151		165
Interest expense		495			317		350
Interest expense to affiliates		58			24		10
Other, net		15			14		(22	)
Total expenses		812			506		503
Pretax income		275			212		252
Income tax provision		878			15		38
Net (loss) income	$	(603	)	$	197	$	214

See Notes to Consolidated Financial Statements.

30

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31 (Millions)	2017			2016			2015
Net (loss) income	$	(603	)	$	197		$	214
Other comprehensive income:
Foreign currency translation adjustments, net of tax		265			(107	)		(369	)
Other comprehensive income (loss)		265			(107	)		(369	)
Comprehensive (loss) income	$	(338	)	$	90		$	(155	)

See Notes to Consolidated Financial Statements.

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AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED BALANCE SHEETS

	December 31,			December 31,
(Millions, except share data)	2017			2016
Assets
Cash and cash equivalents	$	196		$	1,211
Card Member receivables, less reserves: 2017, $145; 2016, $110		20,131			18,108
Card Member loans, less reserves: 2017, $5; 2016, $5		556			471
Loans to affiliates and other		14,527			10,659
Due from affiliates		189			997
Other assets		290			490
Total assets	$	35,889		$	31,936
Liabilities and Shareholder’s Equity
Liabilities
Short-term debt	$	1,308		$	2,993
Short-term debt to affiliates		5,997			4,559
Long-term debt		24,153			20,512
Long-term debt to affiliates		270			―
Total debt		31,728			28,064
Due to affiliates		1,988			1,517
Accrued interest and other liabilities		302			146
Total liabilities	$	34,018		$	29,727
Shareholder’s Equity
Common stock, $0.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares		―			―
Additional paid-in capital		161			161
Retained earnings		2,708			3,311
Accumulated other comprehensive loss
Foreign currency translation adjustments, net of tax of: 2017, $17; 2016, $329		(998	)		(1,263	)
Total accumulated other comprehensive loss		(998	)		(1,263	)
Total shareholder’s equity		1,871			2,209
Total liabilities and shareholder’s equity	$	35,889		$	31,936

See Notes to Consolidated Financial Statements.

32

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31 (Millions)	2017			2016			2015
Cash Flows from Operating Activities
Net (loss) income	$	(603	)	$	197		$	214
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Provisions for losses		244			151			165
Amortization of underwriting expense		28			23			30
Deferred taxes		55			14			8
Changes in operating assets and liabilities:
Interest, taxes and other amounts due to/from affiliates		1,088			(39	)		(262	)
Other operating assets and liabilities		(378	)		475			458
Net cash provided by operating activities		434			821			613
Cash Flows from Investing Activities
Net increase in Card Member receivables and loans, including held for sale(a)		(1,998	)		(1,059	)		(3,592	)
Increase in interest bearing restricted cash to affiliates		(100	)		―			―
Net (increase) decrease in loans to affiliates and other		(1,245	)		2,973			152
Net (decrease) increase in due to/from affiliates		(1,718	)		(515	)		2,605
Net cash (used in) provided by investing activities		(5,061	)		1,399			(835	)
Cash Flows from Financing Activities
Net (decrease) increase in short-term debt		(1,685	)		873			1,351
Net increase (decrease) in short-term debt to affiliates		1,414			(861	)		1,112
Proceeds from long-term debt		8,438			3,791			6,522
Principal payments of long-term debt		(4,900	)		(4,961	)		(8,545	)
Proceeds from long-term debt to affiliates		270			―			―
Dividends paid		―			―			(115	)
Net cash provided by (used in) financing activities		3,537			(1,158	)		325
Effect of foreign currency exchange rates on cash and cash equivalents		75			(24	)		(4	)
Net (decrease) increase in cash and cash equivalents		(1,015	)		1,038			99
Cash and cash equivalents at beginning of year		1,211			173			74
Cash and cash equivalents at end of year	$	196		$	1,211		$	173
Supplemental cash flow information
Non-cash investing activities
Transfer of Card Member receivables, during the fourth quarter of 2015, to Card Member receivables held for sale, net of reserves.	$	―		$	―		$	21
Replacement of due from affiliate balance with new loan arrangement with affiliates(b)	$	2,129		$	―		$	―

(a) Refer to Note 1 for additional information.

(b) To more effectively manage inter-affiliate funding, Credco entered into new loan agreements in July 2017 with American Express Limited and American Express International, Inc. The new loans were funded by the assignment of its existing loan to American Express Company and outstanding due from affiliate balance with TRS.

See Notes to Consolidated Financial Statements.

33

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY

								Accumulated
						Additional		Other
Three Years Ended December 31, 2017				Common		Paid-in		Comprehensive			Retained
(Millions)	Total			Stock		Capital		Loss			Earnings
Balances as of December 31, 2014	$	2,389		$	―	$	161	$	(787	)	$	3,015
Net income		214										214
Other comprehensive loss		(369	)						(369	)
Cash dividends paid		(115	)									(115	)
Balances as of December 31, 2015		2,119			―		161		(1,156	)		3,114
Net income		197										197
Other comprehensive loss		(107	)						(107	)
Cash dividends paid		―										―
Balances as of December 31, 2016		2,209			―		161		(1,263	)		3,311
Net loss		(603	)									(603	)
Other comprehensive income		265							265
Cash dividends paid		―										―
Balances as of December 31, 2017	$	1,871		$	―	$	161	$	(998	)	$	2,708

See Notes to Consolidated Financial Statements.

34

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Summary of Significant Accounting Policies

The Company

American Express Credit Corporation (Credco), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a wholly owned subsidiary of American Express Company (American Express).

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express charge cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest-earning revolving loans are primarily funded by subsidiaries of TRS other than Credco.

Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis; however, there can be no assurance that the terms of these arrangements are the same as would be negotiated between independent, unrelated parties.

American Express provides Credco with financial support with respect to maintenance of its minimum overall 1.25 fixed charge coverage ratio, which is achieved by charging appropriate discount rates on the purchases of receivables Credco makes from, and the interest rates on the loans Credco provides to, TRS and other American Express subsidiaries. Each monthly period, the discount and interest rates are determined to generate income for Credco that is sufficient to maintain its minimum fixed charge coverage ratio. The revenue earned by Credco from purchasing Card Member receivables and loans at a discount is reported as discount revenue on the Consolidated Statements of Income.

Principles of Consolidation

The Consolidated Financial Statements of Credco are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated.

Credco consolidates entities in which it holds a controlling financial interest. For voting interest entities, Credco is considered to hold a controlling financial interest when it is able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, Credco is considered to hold a controlling financial interest when it is determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE.

Foreign Currency

Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of the reporting period; non-monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction; revenues and expenses are translated at the average month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholder’s equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency are reported net in Other expenses, in Credco’s Consolidated Statements of Income. Net foreign currency transaction gains amounted to approximately $21 million, $1 million and $14 million in 2017, 2016 and 2015, respectively.

35

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amounts Based on Estimates and Assumptions

Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member losses on receivables and loans, fair value measurements and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ.

Discount Revenue Earned from Purchased Card Member Receivables and Loans

Credco earns discount revenue from purchasing Card Member receivables and loans at a discount to par value. The discount is deferred and recognized as revenue over the period that the receivables and loans are estimated to be outstanding or funded. Estimates are based on the historical average life of Card Member receivables and loans.

Interest Income from Affiliates

Interest income from affiliates is earned on interest-bearing loans made by Credco to affiliates. Interest income is accrued primarily using the average daily balance method on loans and is recognized based on the outstanding loan principal amount and interest rates specified in the agreements until the outstanding loan balance is paid.

Finance Revenue

Finance revenue is assessed using the average daily balance method for Card Member loans and is recognized based upon the loan principal amount outstanding in accordance with the terms of the applicable account agreement until the outstanding balance is paid or written off.

Interest Expense

Interest expense includes interest incurred primarily to fund Card Member receivables and loans, general corporate purposes and liquidity needs, and is recognized as incurred.

Cash and Cash Equivalents

Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, and other highly liquid investments with original maturities of 90 days or less.

Other Significant Accounting Policies

The following table identifies Credco’s other significant accounting policies, the Note and page where the Note can be found.

	Note
Significant Accounting Policy	Number	Note Title	Page
Card Member Receivables and Loans	Note 2	Card Member Receivables and Loans	38
Reserves for Losses – Card Member Receivables and Loans	Note 3	Reserves for Losses	41
Derivative Financial Instruments and Hedging Activities	Note 6	Derivatives and Hedging Activities	43
Fair Value Measurements	Note 7	Fair Values	47
Income Taxes	Note 11	Income Taxes	54

36

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition. The accounting standard establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. The guidance, as amended and effective January 1, 2018, supersedes most of the revenue recognition requirements in effect prior to that date.

Most revenue associated with financial instruments, including interest income, loan origination fees and credit card fees, is outside the scope of the new revenue standard. Gains and losses on investment securities, derivatives and sales of financial instruments are similarly excluded from the scope. As Credco is engaged in the business of financing Card Member receivables and loans, and in providing loans to certain of its affiliates, the new revenue standard has no impact on the Consolidated Financial Statements and underlying operational processes and accounting policies. Credco’s implementation efforts have included analyzing revenues and related costs to identify any within the scope of the new standard to determine if any changes will be required. Credco has completed the evaluation of the potential impact of this guidance on the timing, recognition, and presentation of revenues and expenses and has not identified any changes.

In January 2016, the FASB issued new accounting guidance on the recognition and measurement of financial assets and financial liabilities, which was effective and adopted by Credco as of January 1, 2018. The guidance, makes targeted changes to GAAP; specifically to the classification and measurement of equity securities, and to certain disclosure requirements associated with the fair value of financial assets and liabilities. The adoption of the guidance, as of January 1, 2018, did not have a material impact on Credco’s financial position, results of operations and cash flows. Credco implemented changes to its accounting policies, business processes and internal controls in support of the new guidance.

In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. Credco does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the CECL model will alter the assumptions used in estimating credit losses on Card Member receivables and loans, and may result in material increases to Credco’s credit reserves as the new guidance involves earlier recognition of expected losses for the life of the assets. American Express has established an enterprise-wide, cross-discipline governance structure to implement the new standard, and continues to identify and conclude on key interpretive issues along with evaluating existing American Express’ credit loss forecasting models and processes in relation to the new guidance to determine what modifications may be required.

In November 2016, the FASB issued new accounting guidance on the cash flow classification and presentation of changes in restricted cash or restricted cash equivalents, effective January 1, 2018. The guidance provides specifically that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents on the statement of cash flows. Credco holds a restricted cash balance such that it becomes a material change to the way balances will be presented on the statement of cash flows. Beginning with the quarter ending March 31, 2018, Credco’s consolidated statements of cash flows will reflect the adoption of the standard using the full retrospective method, which applies the new standard to each prior reporting period presented.

In August 2017, the FASB issued new accounting guidance providing targeted improvements to the accounting for hedging activities, effective January 1, 2019, with early adoption permitted in any interim period or fiscal year before the effective date. The guidance introduces a number of amendments, several of which are optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. Effective January 1, 2018, Credco adopted the guidance with no material impact on its financial position, results of operations and cash flows, along with associated changes to its accounting policies, business processes and internal controls in support of the new guidance.

37

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In February 2018, as a result of the enactment of the Tax Cuts and Jobs Act (the Tax Act), the FASB issued new accounting guidance on the reclassification of certain tax effects from AOCI to retained earnings. The optional guidance is effective January 1, 2019, with early adoption permitted. Credco is evaluating whether it will adopt the new guidance along with any impacts on the Credco’s financial position, results of operations and cash flows, none of which are expected to be material.

Other Information

During the fourth quarter of 2015, American Express determined it would sell Card Member loans and receivables related to certain of its cobrand partnerships. As a result of the determination, Credco classified Card Member receivables related to the Costco portfolio purchased from American Express Receivables Financing Corporation VIII LLC (RFC VIII) in the form of participation interest as Card Member receivables held for sale (HFS) on its Consolidated Balance Sheets as of December 31, 2015 and March 31, 2016.

During the first half of 2016, American Express completed the sales of substantially all of its outstanding Card Member loans and receivables HFS, and consequently Credco also sold back all of its participation interests in Card Member receivables HFS to RFC VIII.

Note 2 – Card Member Receivables and Loans

American Express’ charge and credit card products result in the generation of Card Member receivables and Card Member loans, respectively.

Card Member Receivables

Card Member receivables represent amounts due on American Express charge card products. For American Express, the Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant. Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are established to limit the maximum exposure for American Express. Charge Card Members generally must pay the full amount billed each month.

Credco records these Card Member receivables at the time they are purchased from TRS and certain of its subsidiaries that issue the card (card issuers). Card Member receivable balances are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 3). Card Member receivables also include participation interests purchased from an affiliate. Participation interests in Card Member receivables represent undivided interests in the cash flows of the non-interest-earning Card Member receivables. In conjunction with TRS’ securitization program, Credco, through its wholly owned subsidiary, Credco Receivables Corporation (CRC), purchases participation interests from American Express Receivables Financing Corporation VIII LLC (RFC VIII), a wholly owned subsidiary of TRS that receives undivided, pro rata interests in Card Member receivables transferred to the American Express Issuance Trust (the Charge Trust), by TRS. The Charge Trust is a special purpose entity that is consolidated by TRS.

Card Member receivables as of December 31, 2017 and 2016 consisted of:

(Millions)	2017		2016
U.S. Consumer Services	$	3,557	$	3,518
International Consumer and Network Services (a)		1,827		1,526
Global Commercial Services (b)		14,892		13,174
Card Member receivables (c)		20,276		18,218
Less: Reserve for losses		145		110
Card Member receivables, net (d)	$	20,131	$	18,108

(a) Comprised of International consumer card business.

(b) Comprised of Corporate and Small Business Services.

(c) Net of deferred discount revenue totaling $43 million and $27 million as of December 31, 2017 and 2016, respectively.

(d) Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

38

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Card Member Loans

Card Member loans represent revolving amounts due on American Express cards. For American Express lending card products, these Card Member loans are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and elect to revolve a portion of the outstanding balance by entering into a revolving payment arrangement with American Express. These loans have a range of terms such as credit 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 payments based on pre-established amounts and the amounts that Card Members choose to revolve are subject to finance charges.

Credco records these Card Member loans at the time they are purchased from TRS and certain of its subsidiaries that issue the card (card issuers). Card Member loans are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 3), and include principal and any related accrued interest and fees. American Express’ policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that will not be collected.

Card Member loans as of December 31, 2017 and 2016 consisted of:

(Millions)	2017		2016
International Consumer and Network Services (a)	$	561	$	476
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	556	$	471

(a) Comprised of International consumer card business.

(b) Card Member loans modified in a TDR program were immaterial.

Card Member Receivables and Loans Aging

Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member receivables and Card Member loans as of December 31, 2017 and 2016:

				30-59 Days		60-89 Days	90+ Days
2017 (Millions)	Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
U.S. Consumer Services	$	3,531	$	10	$	6	$	10	$	3,557
International Consumer and Network Services		1,805		8		5		9		1,827
Global Commercial Services
Global Small Business Services		1,397		5		4		6		1,412
Global Corporate Payments (a)	(b)		(b)		(b)			112		13,480
Card Member Loans:
International Consumer and Network Services	$	557	$	1	$	1	$	2	$	561

39

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

				30-59 Days		60-89 Days	90+ Days
2016 (Millions)	Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
U.S. Consumer Services	$	3,501	$	9	$	3	$	5	$	3,518
International Consumer and Network Services		1,506		6		4		10		1,526
Global Commercial Services
Global Small Business Services		1,202		9		2		5		1,218
Global Corporate Payments (a)	(b)		(b)		(b)			108		11,956
Card Member Loans:
International Consumer and Network Services	$	472	$	1	$	1	$	2	$	476

(a) For Global Corporate Payments Card Member receivables in Global Commercial Services, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if collection procedures are initiated on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).

(b) Delinquency data for periods other than 90 days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

Credit Quality Indicators for Card Member Receivables and Loans

The following tables present the key credit quality indicators as of or for the years ended December 31:

	2017						2016
				30+ Days						30+ Days
	Net			Past Due			Net			Past Due
	Write-off			as a % of			Write-off			as a % of
	Rate		(a)	Total			Rate		(a)	Total
Card Member Receivables:
U.S. Consumer Services		0.83	%		0.73	%		0.54	%		0.48	%
International Consumer and Network Services		1.50	%		1.20	%		1.86	%		1.31	%
Global Small Business Services		1.11	%		1.06	%		1.03	%		1.31	%
Card Member Loans:
International Consumer and Network Services		1.24	%		0.71	%		1.15	%		0.84	%
	2017						2016
	Net Loss Ratio as a			90+ Days Past			Net Loss Ratio as a			90+ Days Past
	% of			Billing			% of			Billing
	Charge			as a % of			Charge			as a % of
	Volume		(b)	Receivables			Volume		(b)	Receivables
Card Member Receivables:
Global Corporate Payments		0.08	%		0.83	%		0.06	%		0.90	%

(a) Represents the amount of Card Member receivables or Card Member loans owned by Credco that are written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods indicated.

(b) Represents the amount of Card Member receivables owned by Credco that are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated.

Refer to Note 3 for additional indicators, including external environmental qualitative factors, management considers in its monthly evaluation process for reserves for losses.

40

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3 – Reserves for Losses

Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantitative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitative reserves for certain external and internal qualitative factors, which may increase or decrease the reserves for losses on Card Member receivables and loans. These external factors include employment, spend, sentiment, housing and credit, and changes in the legal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member receivables or loans and net write-off coverage ratios.

Card Member receivables and loans balances are written off when management considers amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due. Card Member receivables and loans in bankruptcy or owed by deceased individuals are generally written off upon notification, and recoveries are recognized as they are collected.

This Note is presented excluding amounts associated with the Card Member receivables HFS as of December 31, 2015; Credco did not have any Card Member receivables HFS as of December 31, 2017 or 2016.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31:

(Millions)	2017			2016			2015
Balance, January 1	$	110		$	114		$	94
Provisions		238			145			160
Other credits(a)		58			20			32
Net write-offs(b)		(198	)		(146	)		(157	)
Other debits(c)(d)		(63	)		(23	)		(15	)
Balance, December 31	$	145		$	110		$	114

(a) Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $9.4 billion, $5.4 billion and $5.8 billion for the years ended December 31, 2017, 2016 and 2015, respectively.

(b) Net of recoveries of $95 million, $91 million and $100 million for the years ended December 31, 2017, 2016 and 2015, respectively.

(c) Primarily reserve balances related to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold totaled $9.4 billion, $5.7 billion and $2.6 billion for the years ended December 31, 2017, 2016 and 2015, respectively.

(d) 2015 includes the impact of the transfer of reserves relating to the HFS portfolio, which was not significant.

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)	2017			2016			2015
Balance, January 1	$	5		$	4		$	3
Provisions		6			6			5
Net write-offs(a)		(6	)		(5	)		(4	)
Balance, December 31	$	5		$	5		$	4

(a) Net of recoveries of $1 million for each of the years ended December 31, 2017, 2016 and 2015.

41

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Debt

Short-Term Debt

Credco’s short-term debt outstanding (excluding short-term debt to affiliates), defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows:

	2017					2016
	Outstanding		Year-End Stated			Outstanding		Year-End Stated
(Millions, except percentages)	Balance		Rate on Debt(a)			Balance		Rate on Debt(a)
Commercial paper(b)	$	1,168		1.54	%	$	2,993		1.13	%
Other short-term borrowings(c)		140		1.27			―		―
Total	$	1,308		1.51	%	$	2,993		1.13	%

(a) For floating-rate issuances, the stated interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2017 and 2016.

(b) Average commercial paper outstanding was $1,076 million and $491 million in 2017 and 2016, respectively.

(c) Represents interest-bearing overdrafts with banks.

Long-Term Debt

Credco’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:

			2017									2016
	Original					Year-End			Year-End Effective						Year-End			Year-End Effective
	Contractual					Stated			Interest						Stated			Interest
(Millions, except	Maturity		Outstanding			Rate			Rate with			Outstanding			Rate			Rate with
percentages)	Dates		Balance		(a)	on Debt		(b)	Swaps		(b)(c)	Balance		(a)	on Debt		(b)	Swaps		(b)(c)
Fixed Rate Senior Notes		2018-2027	$	19,652			2.24	%		2.27	%	$	16,201			1.98	%		1.44	%
Floating Rate Senior Notes		2018-2022		4,550			2.09			―			4,350			1.52			―
Unamortized Underwriting Fees				(49	)								(39	)
Total Long-Term Debt			$	24,153			2.21	%				$	20,512			1.88	%

(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 6 for more details on Credco’s treatment of fair value hedges.

(b) For floating-rate issuances, the stated and effective interest rates are weighted based on outstanding balances and rates in effect as of December 31, 2017 and 2016.

(c) Effective interest rates are only presented when swaps are in place to hedge the underlying debt.

42

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2017 were as follows:

(Millions)
2018	$	3,654
2019		7,150
2020		6,600
2021		2,939
2022		2,050
Thereafter		2,000
Total		24,393
Unamortized Underwriting Fees		(49	)
Unamortized Discount and Premium		(36	)
Impacts due to Fair Value Hedge Accounting		(155	)
Total Long-Term Debt	$	24,153

Credco maintained a bank line of credit of $3.5 billion and $3.0 billion as of December 31, 2017 and 2016, respectively, all of which was undrawn as of the respective dates. These undrawn amounts support contingent funding needs. Credco paid $6.0 million and $2.2 million in fees to maintain these lines for the years ended December 31, 2017 and 2016, respectively. The availability of the credit line is subject to compliance with certain financial covenants, including the maintenance of a 1.25 ratio of earnings to fixed charges. As of December 31, 2017, Credco’s ratio of earnings to fixed charges was 1.50. As of December 31, 2017 and 2016, Credco was not in violation of any of its debt covenants.

The committed facility does not contain material adverse change clauses that would preclude borrowing under the credit facility. Additionally, the facility may not be terminated should there be a change in Credco’s credit ratings.

Credco paid total interest, primarily related to short- and long-term debt, and corresponding interest rate swaps of $0.5 billion for the year ended December 31, 2017, and $0.3 billion for both the years ended December 31, 2016 and 2015.
Note 5 – Restrictions as to Dividends and Limitations on Indebtedness

The debt instruments issued by Credco impose the requirement that Credco maintain a minimum consolidated net worth of $50 million, which limits the amount of dividends Credco can pay to its parent. There are no limitations on the amount of debt that can be issued by Credco, provided it maintains the minimum fixed charge coverage ratio of 1.25.

Note 6 – Derivatives and Hedging Activities

Credco uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates and foreign exchange rates, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of Credco’s market risk management. Credco does not transact in derivatives for trading purposes.

Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Credco’s market risk exposures include:

 Interest rate risk in its funding activities; and

 Foreign exchange risk related to earnings, funding, transactions and investments in currencies other than the U.S. dollar.

American Express centrally monitors market risks using market risk limits and escalation triggers as defined in its Asset/Liability Management Policy.

43

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Interest rate exposure within charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt compared to fixed-rate debt. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations or to convert variable-rate debt obligations to fixed-rate obligations. Credco may change the mix between variable-rate and fixed-rate funding based on changes in business volumes and mix, among other factors.

Foreign exchange risk is generated by funding foreign currency Card Member receivables and loans with U.S. dollars, foreign currency balance sheet exposures, foreign subsidiary equity and foreign currency earnings in entities outside the United States. Credco’s foreign exchange risk is managed primarily by entering into agreements to buy and sell currencies on a spot basis or by hedging this market exposure to the extent it is economically justified, through various means, including the use of derivatives such as foreign exchange forwards and cross-currency swap contracts. Exposures from foreign subsidiary equity in Credco’s entities outside the United States are hedged through the use of foreign exchange forwards executed either by Credco or TRS.

Derivatives may give rise to counterparty credit risk, which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to an uncollateralized derivative exposure. This risk is managed by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential value of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are required to be pre-approved by American Express and rated as investment grade, and counterparty risk exposures are centrally monitored.

Additionally, in order to mitigate the bilateral counterparty credit risk associated with derivatives, Credco has in certain instances entered into master netting agreements with its derivative counterparties, which provide a right of offset for certain exposures between the parties. A majority of Credco’s derivative assets and liabilities as of December 31, 2017 and 2016 are subject to master netting agreements with its derivative counterparties. Credco has no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets. To further mitigate bilateral counterparty credit risk, Credco exercises its rights under executed credit support agreements with certain of its derivative counterparties. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All derivative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts.

In relation to Credco’s credit risk, under the terms of the derivative agreements it has with its various counterparties, Credco is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. Based on its assessment of the credit risk of Credco’s derivative counterparties as of December 31, 2017 and 2016, no credit risk adjustment to the derivative portfolio was required.

Credco’s derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below. Refer to Note 7 for a description of Credco’s methodology for determining the fair value of derivatives.

44

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31:

	Other Assets						Other Liabilities
	Fair Value						Fair Value
(Millions)	2017			2016			2017			2016
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)	$	―		$	22		$	―		$	69
Net investment hedges - Foreign exchange contracts		54			151			38			1
Total derivatives designated as hedging instruments		54			173			38			70
Derivatives not designated as hedging instruments:
Foreign exchange contracts		9			128			57			28
Total derivatives, gross		63			301			95			98
Less: Cash collateral netting (b)(c)		―			(2	)		―			(49	)
Derivative asset and derivative liability netting (d)		(26	)		(27	)		(26	)		(27	)
Total derivatives, net	$	37		$	272		$	69		$	22

(a) Effective January 2017, the Central Clearing Party (CCP) changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as opposed to collateral. As of December 31, 2017, there was no unsettled derivative asset or liability with the CCP.

(b) Represents the offsetting of the fair value of bilateral interest rate contracts with the right to reclaim cash collateral or the obligation to return cash collateral.

(c) Credco held no non-cash collateral as of December 31, 2017 and 2016, respectively. To mitigate counterparty credit risk related to derivatives, Credco may accept non-cash collateral from its derivatives counterparties. Additionally, Credco posted $115 million and $144 million as of December 31, 2017 and 2016, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other assets on Credco’s Consolidated Balance Sheets and are not netted against the derivative balances.

(d) Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

Derivative Financial Instruments that Qualify for Hedge Accounting

Derivatives executed for hedge accounting purposes are documented and designated as such when Credco enters into the contracts. In accordance with its risk management policies, Credco structures its hedges with terms similar to those of the item being hedged. Credco formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, Credco will discontinue the application of hedge accounting.

Fair Value Hedges

A fair value hedge involves a derivative designated to hedge Credco’s exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof that is attributable to a particular risk.

Credco is exposed to interest rate risk associated with its fixed-rate long-term debt obligations. At the time of issuance, certain fixed-rate debt obligations are designated in fair value hedging relationships using interest rate swaps to economically convert the fixed interest rate to a floating interest rate. Credco has $16.2 billion and $14.8 billion of fixed-rate debt obligations designated in fair value hedging relationships as of December 31, 2017 and 2016, respectively.

45

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

To the extent the fair value hedge is effective, the gain or loss on the hedging instrument offsets the loss or gain on the hedged item attributable to the hedged risk. Any difference between the changes in the fair value of the derivative and the changes in the hedged item is referred to as hedge ineffectiveness and is reported as a component of Other expenses. Hedge ineffectiveness may be caused by differences between a debt obligation’s interest rate and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the fair value of the interest rate swap. Furthermore, hedge ineffectiveness may be caused by changes in 1-month LIBOR, 3-month LIBOR and the overnight indexed swap rate, as spreads between these rates impact the fair value of the interest rate swap without causing an exact offsetting impact to the fair value of the hedged debt.

For the periods presented, Credco considers all fair value hedges to be highly effective and did not de-designate any fair value hedge relationships.

The following table summarizes the gains (losses) recognized in Other expenses associated with Credco’s fair value hedges for the years ended December 31:

(Millions)	2017			2016			2015
Interest rate derivative contracts	$	(129	)	$	(102	)	$	(31	)
Hedged items		100			91			44
Net hedge ineffectiveness (losses) gains	$	(29	)	$	(11	)	$	13

Credco also recognized a net reduction in interest expense on long-term debt of $53 million, $126 million and $177 million for the years ended December 31, 2017, 2016 and 2015, respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges.

Net Investment Hedges

A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. Credco primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to changes in currency exchange rates on Credco’s investments in non-U.S. subsidiaries. The effective portion of the gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment were losses of $174 million and gains of $80 million and $235 million for the years ended December 31, 2017, 2016 and 2015, respectively, with any ineffective portion recognized in Other expenses during the period. No ineffectiveness or other amounts associated with net investment hedges were reclassified from AOCI into income for the years ended December 31, 2017, 2016 and 2015.

Derivatives Not Designated As Hedges

Credco has derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve 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 derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in a net gains of $21 million, $1 million and $14 million for the years ended December 31, 2017, 2016 and 2015, respectively, and are recognized in Other expenses.

46

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7 – Fair Values

Fair value is defined as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on Credco’s principal or, in the absence of a principal, most advantageous market for the specific asset or liability.

GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:

 Level 1 – Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access.

 Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including:

- Quoted prices for similar assets or liabilities in active markets;

- Quoted prices for identical or similar assets or liabilities in markets that are not active;

- Inputs other than quoted prices that are observable for the asset or liability; and

- Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 Level 3 – Inputs that are unobservable and reflect Credco’s own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Credco 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, 2017 and 2016, although the disclosed fair value of certain assets that are not carried at fair value, as presented later in this Note, are classified within Level 3.

Credco monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, Credco discloses the fair value measurement at the beginning of the reporting period during which the transfer occurred. For the years ended December 31, 2017 and 2016, there were no significant transfers between levels.

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy as Level 2 (as described in the preceding paragraphs), as of December 31:

(Millions)	2017		2016
Assets:
Derivatives (a)	$	63	$	301
Total assets		63		301
Liabilities:
Derivatives (a)		95		98
Total liabilities	$	95	$	98

(a) Refer to Note 6 for the fair values of derivative assets and liabilities, on a further disaggregated basis.

47

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Fair Value

For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table), Credco applies the following valuation techniques:

Derivative Financial Instruments

The fair value of Credco’s derivative financial instruments is estimated internally by using third-party pricing models, where the inputs to those models are readily observable from actively quoted markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. Credco reaffirms its understanding of the valuation techniques at least annually and validates the valuation output on a quarterly basis. Credco’s derivative instruments are classified within Level 2 of the fair value hierarchy.

The fair value of Credco’s interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated.

The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated.

Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve, used to value derivatives are not indicative of the credit quality of Credco or its counterparties. Credco considers the counterparty credit risk by applying an observable forecasted default rate to the current exposure. Refer to Note 6 for additional fair value information.

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table summarizes the estimated fair value for Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of December 31, 2017 and 2016. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2017 and 2016, respectively, and require management judgment. These figures may not be indicative of future fair values nor can the fair value of Credco be estimated by aggregating the amounts presented.

	Carrying		Corresponding Fair Value Amount
2017 (Billions)	Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value(a)
Cash and cash equivalents	$	0.2	$	0.2	$	0.2	$	―	$	―
Other financial assets		20.6		20.6		0.1		20.5		―
Financial assets carried at other than fair value
Card Member loans, net		0.6		0.6		―		―		0.6
Loans to affiliates and other		14.5		14.4		―		10.0		4.4
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value		8.6		8.6		―		8.6		―
Financial liabilities carried at other than fair value
Long-term debt		24.2		24.5		―		24.5		―
Long-term debt with affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

48

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	Carrying		Corresponding Fair Value Amount
2016 (Billions)	Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value(a)
Cash and cash equivalents	$	1.2	$	1.2	$	0.2	$	1.0	$	―
Other financial assets		19.3		19.3		―		19.3		―
Financial assets carried at other than fair value
Card Member loans, net		0.5		0.5		―		―		0.5
Loans to affiliates and other		10.7		10.7		―		7.9		2.8
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value		9.1		9.1		―		9.1		―
Financial liabilities carried at other than fair value
Long-term debt		20.5		20.7		―		20.7		―
Long-term debt with affiliates	$	―	$	―	$	―	$	―	$	―

(a) Level 1 amounts reflect interest-bearing deposits and Level 2 amount primarily reflects time deposits, short-term investments and Card Member receivables.

The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2017 and 2016, respectively, and require management judgment. These figures may not be indicative of future fair values. The fair value of Credco cannot be reliably estimated by aggregating the amounts presented.

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Other Than Fair Value

For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table), Credco applies the following valuation techniques to measure fair value:

Financial Assets For Which Carrying Values Equal Or Approximate Fair Value

Financial assets for which carrying values equal or approximate fair value include cash and cash equivalents, Card Member receivables, due from affiliates, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate.

Financial Assets Carried At Other Than Fair Value

Card Member loans

Card Member loans are recorded at historical cost, less reserves, on the Consolidated Balance Sheets. In estimating the fair value for Credco’s Card Member loans, Credco uses a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar loans and the lack of observable pricing inputs thereof, Credco uses various inputs derived from an equivalent securitization market to estimate fair value. Such inputs include projected income, pay-down rates, discount rates, relevant credit costs and cost of funding assumptions.

Loans to affiliates and other

Loans to affiliates and other are recorded at historical cost on the Consolidated Balance Sheets. In estimating the fair value for Credco’s loans to affiliates and other, Credco uses discounted cash flow models. For loans to affiliates collateralized by Card Member loans, Credco derives the value of the loans based on the fair value of the underlying collateral used to finance the loans using a discounted cash flow model with inputs as detailed above (Card Member loans), and as such is classified as Level 3. For the remaining loans to affiliates and other, the models use market observable interest rates and adjust those rates for necessary risks.

49

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Financial Liabilities For Which Carrying Values Equal Or Approximate Fair Value

Financial liabilities for which carrying values equal or approximate fair value include short-term debt, short-term debt to affiliates, due to affiliates, accrued interest and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate.

Financial Liabilities Carried At Other Than Fair Value

Long-term debt

Long-term debt, including with affiliates, is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for the impact of fair value hedge accounting on certain fixed-rate notes and current translation rates for foreign-denominated debt. The fair value of Credco’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 of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly-traded debt markets of similar terms and comparable credit risk, Credco uses market interest rates and adjusts those rates for necessary risks, including its own credit risk. In determining an appropriate spread to reflect its credit standing, Credco considers credit default swap spreads, bond yields of other long-term debt offered by Credco, and interest rates currently offered to Credco for similar debt instruments of comparable maturities.

Nonrecurring Fair Value Measurements

Credco did not have any assets that were measured at fair value due to impairment on a nonrecurring basis during the years ended December 31, 2017 and 2016.

Note 8 – Variable Interest Entity

Credco has established a VIE, American Express Canada Credit Corporation (AECCC), used primarily to lend funds to affiliates, through the issuance of notes in Canada under a medium-term note program. All notes issued under this program are fully guaranteed by Credco. Credco is considered the primary beneficiary of the entity and owns all of the outstanding voting interests and, therefore, consolidates the entity. Total assets as of December 31, 2017 and 2016 were $0.5 billion and $1.7 billion respectively. As of December 31, 2017 and 2016, nil and $1.7 billion, respectively, of assets were eliminated in consolidation. Total liabilities as of December 31, 2017 and 2016 were $0.5 billion and $1.7 billion respectively. As of December 31, 2017 and 2016, nil and $1.3 billion, respectively, of liabilities were eliminated in consolidation. The assets of the VIE are not used solely to settle the obligations of the VIE. The note holders of the VIE have recourse to Credco.

Note 9 – Transactions with Affiliates

As described below, Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis. However, there can be no assurance that the terms of these arrangements are the same as would be negotiated between independent parties.

In 2017, 2016 and 2015, Credco purchased Card Member receivables and loans without recourse from TRS and certain of its subsidiaries totaling approximately $262 billion, $225 billion and $227 billion, respectively. In 2017, 2016 and 2015, Credco sold Card Member receivables and participating interests to affiliates totaling $9.4 billion, $5.7 billion and $2.6 billion, respectively. The discount revenue on purchased Card Member receivables and loans totaled $760 million, $471 million and $479 million for the years ended December 31, 2017, 2016 and 2015, respectively. The receivables agreements require TRS and its subsidiaries to perform servicing, clerical and other services necessary to bill and collect all Card Member receivables and loans owned by Credco. Since settlements under the agreements occur monthly, an amount due from, or payable to, such affiliates may arise at the end of each month.

50

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2017 and 2016, CRC owned approximately $4.1 billion and $4.0 billion, respectively, of participation interests purchased from RFC VIII.

Transactions with affiliates as of or for the years ended December 31, were as follows:

(Millions, except percentages)	2017			2016			2015
Loans to affiliates and other	$	14,527		$	10,659		$	14,262
Average interest rate on loans to affiliates and other		2.19	%		1.78	%		1.81	%
Due from affiliates	$	189		$	997		$	615
Restricted cash with affiliates		100			―			―
Short-term debt to affiliates		5,997			4,559			5,439
Average interest rate on short-term debt to affiliates		1.04	%		0.49	%		0.19	%
Maximum month-end level of short-term borrowings during the year	$	8,377		$	5,091		$	5,439
Long term debt to affiliates		270			―			―
Average interest rate on long-term debt to affiliates		0.23	%		―			―
Maximum month-end level of long-term borrowings during the year	$	270		$	―		$	―
Due to affiliates		1,988			1,517			1,727
Maximum month-end level of loans to affiliates during the year		14,527			13,083			17,711
Interest income from affiliates and other		279			207			246
Interest expense to affiliates		58			24			10
Other, net expense	$	2		$	1		$	1

Credco’s loans to affiliates represent floating-rate interest-bearing intercompany borrowings by American Express Company, other wholly owned subsidiaries of TRS and the American Express joint ventures. Revenue earned from loans to affiliates and other is recorded as interest income from affiliates and other in the Consolidated Statements of Income. As of December 31, 2017 and 2016, no amount of loss reserves has been recorded and no loans are 30 days or more past due.

The components of loans to affiliates and other as of December 31 were as follows:

(Millions)	2017		2016
American Express Limited	$	3,847	$	―
American Express Services Europe Limited		2,747		2,484
Amex Bank of Canada		1,737		1,593
American Express Australia Limited		1,616		1,290
American Express International, Inc.		1,180		―
American Express Company		961		4,044
Amex Global Holdings C.V.		888		―
American Express Company (Mexico) S.A. de C.V.		812		765
American Express Bank (Mexico) S.A.		325		291
Alpha Card S.C.R.L./C.V.B.A.		138		―
American Express International, Inc- Branch - Singapore		124		107
American Express International (NZ), Inc.		80		85
Amex Funding Management (Europe) Limited		38		―
American Express Saudi Arabia (C) JSC		34		―
Total (a)	$	14,527	$	10,659

(a) As of December 31, 2017 and 2016, approximately $5.0 billion and $3.3 billion, respectively, were collateralized by the underlying Card Member receivables and loans transferred with recourse.

Due from/to affiliates relate primarily to timing differences from the purchase of Card Member receivables, net of remittances from TRS, as well as from operating activities. As of December 31, 2017, due to affiliates primarily represents tax liability on account of the Tax Act. Refer to Note 11 to the Consolidated Financial Statements.

51

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2017 and 2016, the amount of interest-bearing restricted cash was $100 million and nil, respectively, which represents cash placed with Amex Bank of Canada relating to the new collateralized loan arrangement for transfer of Card Member loans described above and has been included under “Other Assets” on the Consolidated Balance Sheets.

Components of short-term debt to affiliates as of December 31 were as follows:

(Millions)	2017		2016
AE Exposure Management Limited.	$	4,548	$	3,361
American Express Europe LLC		765		515
American Express Swiss Holdings GmbH		444		376
American Express Holdings Netherlands CV		192		192
Accertify Inc.		48		42
Amex Funding Management (Europe) Limited		―		73
Total	$	5,997	$	4,559

Short-term debt to affiliates consists primarily of master note agreements repayable on demand. Credco does not expect any changes to its short-term funding strategies with affiliates.

Long-term debt to affiliates represents an unsecured amount due to LB Luxembourg Two S.a.r.l amounting to $270 million and nil as of December 31, 2017 and 2016, respectively, payable by December 2020.

Service Fees to Affiliates

Credco’s affiliates do not explicitly charge Credco a servicing fee for the servicing of receivables purchased. Instead Credco receives a lower discount rate on the receivables purchased than would be the case if servicing fees were charged. If a servicing fee had been charged by these affiliates from which Credco purchases receivables, fees to affiliates for servicing receivables would have been approximately $234 million, $253 million and $242 million for the years ended December 31, 2017, 2016 and 2015, respectively. Correspondingly, discount revenue would have increased by approximately the same amounts in these periods.

52

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 10 – Changes in Accumulated Other Comprehensive Income

AOCI is a balance sheet item in the Shareholder’s Equity section of Credco’s Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in Foreign Currency Translation Adjustments for the three years ended December 31 were as follows:

	Foreign
	Currency
	Translation
(Millions), net of tax	Adjustments
Balances as of December 31, 2014	$	(787	)
Net translation loss of investments in foreign operations		(604	)
Net gains related to hedges of investment in foreign operations		235
Net change in accumulated other comprehensive loss		(369	)
Balances as of December 31, 2015		(1,156	)
Net translation loss of investments in foreign operations		(187	)
Net gains related to hedges of investment in foreign operations		80
Net change in accumulated other comprehensive loss		(107	)
Balances as of December 31, 2016		(1,263	)
Net translation gain of investments in foreign operations(a)		439
Net losses related to hedges of investment in foreign operations		(174	)
Net change in accumulated other comprehensive loss		265
Balances as of December 31, 2017	$	(998	)

(a) Includes $289 million of recognized tax benefit (refer to Note 11).

The following table shows the tax impact for the three years ended December 31 for the changes in Foreign Currency Translation Adjustments presented above:

	Tax (benefit) expense
(Millions)	2017			2016		2015
Foreign currency translation adjustments (a)	$	(209	)	$	49	$	―
Net investment hedges		(103	)		48		140
Total tax impact	$	(312	)	$	97	$	140

(a) Include $289 million of tax benefit recognized in the year ended December 31, 2017 (refer to Note 11).

No amounts were reclassified out of AOCI into the Consolidated Statements of Income for the years ended December 31, 2017 and 2016.

53

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 11 – Income Taxes

The Tax Act, enacted by the U.S. government on December 22, 2017, makes broad and complex changes to the U.S. tax code which will require time to interpret. The SEC issued Staff Accounting Bulletin No. 118 (SAB 118) in December, 2017, to provide guidance on accounting for the effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the Tax Act enactment date for companies to complete their assessment of and accounting for those effects of the Tax Act required under ASC 740 ‘‘Implementation Guidance on Accounting for Uncertainty in Income Taxes’’ to be reported in the period of enactment. Under SAB 118, a company must first reflect the income tax effects of the Tax Act for which the accounting is complete in the period of the date of enactment. To the extent the accounting for other income tax effects is incomplete, but for which a reasonable estimate can be determined, companies must record a provisional estimate to be included in their financial statements. For any income tax effect for which a reasonable estimate cannot be determined, an entity must continue to apply ASC 740 based on the provisions of the tax laws in effect immediately prior to the Tax Act being enacted until such time as a reasonable estimate can be determined.

Credco has recorded a discrete net charge of $858 million in the period ended December 31, 2017 related to the Tax Act. For the reasons stated below, Credco requires additional time to complete its analysis of the impacts of the Tax Act and therefore its accounting for the Tax Act is provisional.

1. Impacts of the Deemed Repatriation: The Tax Act imposed a one-time transition tax on unrepatriated post-1986 accumulated earnings and profits (E&P) of certain of our foreign subsidiaries. To calculate this tax, Credco must determine the cumulative amount of E&P, as well as the amount of foreign taxes paid on such earnings. In addition, Credco made a decision to no longer assert that the accumulated post-1986 E&P of its non-U.S. subsidiaries that are subject to this one-time transition tax are intended to be permanently reinvested outside the United States. As a result Credco recorded a deferred tax liability for the state income and foreign withholding tax consequences of any future cash dividends paid from such E&P. Credco has recorded reasonable estimates based on data available for both the deemed repatriation tax for 2017 of $737 million, and the deferred state income and foreign withholding taxes on potential future distributions of these earnings of $105 million. Until Credco fully completes its analysis of both items, Credco’s accounting for these items is provisional.

2. Remeasurement of Deferred Tax Assets and Liabilities: Credco has recorded a deferred tax charge of $16 million related to the remeasurement of its U.S. federal net deferred tax assets for 2017. This charge reflects the change in the corporate tax rate from 35 percent to 21 percent, effective January 1, 2018, as well as other provisions of the Tax Act. Certain components of the remeasurement are reasonable estimates based on available information. Until Credco fully completes its analysis of all components, Credco’s accounting for the remeasurement of its net deferred tax assets is provisional.

Credco will complete its analysis of and finalize its accounting for these provisional estimates during the one-year measurement period as prescribed by SAB 118.

The results of operations of Credco are included in the consolidated U.S. federal income tax return of American Express. Under an agreement with American Express, provision for income taxes is recognized on a separate company basis. If benefits for net operating losses, future tax deductions and foreign tax credits cannot be recognized on a separate company basis, such benefits are then recognized based upon a share, derived by formula, of those deductions and credits that are recognizable on an American Express consolidated reporting basis.

54

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The components of income tax expense (benefit) for the years ended December 31 included in Credco’s Consolidated Statements of Income were as follows:

(Millions)	2017			2016			2015
Current income tax expense (benefit):
U.S. federal (a)	$	785		$	(4	)	$	15
U.S. state and local		15			(6	)		(4	)
Non-U.S.		24			11			20
Total current income tax expense		824			1			31
Deferred income tax expense (benefit) :
U.S. federal (b)		58			10			(5	)
U.S. state and local		1			1			―
Non-U.S.		(5	)		3			12
Total deferred income tax expense		54			14			7
Total income tax expense	$	878		$	15		$	38

(a) 2017 includes a charge of $737 million related to the Tax Act deemed repatriation tax on certain non-U.S. earnings.

(b) 2017 includes charges related to the Tax Act of $16 million due to the remeasurement of certain federal net deferred tax assets to the lower federal tax rate of 21 percent and $105 million due to deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries.

A reconciliation of the U.S. federal statutory rate of 35 percent to Credco’s actual income tax rate for the years ended December 31 was as follows:

	2017			2016			2015
U.S. statutory federal income tax rate		35.0	%		35.0	%		35.0	%
(Decrease) increase in taxes resulting from:
State and local income taxes, net of federal benefit		(0.3	)		(0.5	)		―
Non-U.S. subsidiaries earnings(a)		(25.7	)		(25.1	)		(25.5	)
Tax Settlements(b)		(1.1	)		(1.4	)		(0.4	)
U.S. Tax Act(c)		311.6			―			―
Other(d)		(0.2	)		(0.9	)		6.0
Actual tax rate		319.3	%		7.1	%		15.1	%

(a) Results for all years include recurring permanent tax benefits, in relation to the level of pretax income. Expenses in the United States are attracting a 35 percent statutory benefit whereas foreign earnings are taxed at lower rates and were indefinitely reinvested prior to the impacts of the Tax Act in 2017 (refer footnote (c)). Credco’s effective tax rate reflects the favorable impact of the tax benefit related to its ongoing funding activities outside of the United States.

(b) Relates to the resolution of tax matters in various jurisdictions.

(c) Relates to the $858 million charge for the impacts of the Tax Act.

(d) Results for 2016 and 2015 include the impact of prior year tax returns filed in the current year.

The results for the year ended December 31, 2015 reflect out-of-period corrections that increased tax expense by $11 million and the effective tax rate by approximately 4.4 percent. The corrections relate to tax calculations of foreign exchange gains/losses in one jurisdiction reflected in the 2014 results. None of the current or prior period financial statements were materially misstated from these corrections.

Credco records a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. In particular, the 2017 balances were reduced to reflect the remeasurement of certain federal net deferred tax assets due to the enacted lower federal tax rate of 21 percent.

55

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table:

(Millions)	2017			2016
Deferred tax assets:
Reserves not yet deducted for tax purposes	$	26		$	23
State income taxes		5			9
Foreign exchange loss		7			―
Other		―			1
Gross deferred tax assets		38			33
Deferred tax liabilities:
Investment in foreign subsidiaries(a)		105			―
Foreign exchange gain		―			8
Gross deferred tax liabilities		105			8
Net deferred tax assets	$	(67	)	$	25

(a) Deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries.

Credco is subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which American Express operates. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, Credco must make judgments in assessing the likelihood that a tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. Credco adjusts the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome.

American Express is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which American Express has significant business operations. The tax years under examination and open for examination vary by jurisdiction. In February 2017, American Express received notification that all matters outstanding with the IRS for the tax years 1997-2007 were resolved. The resolution of such matters did not impact Credco’s effective tax rate. American Express is currently under examination with the IRS for the tax years 2008 through 2014.

The following table presents changes in unrecognized tax benefits:

(Millions)	2017			2016			2015
Balance, January 1	$	308		$	211		$	364
Increases:
Current year tax positions		8			79			2
Tax positions related to prior years		―			24			1
Decreases:
Tax positions related to prior years (a)		(289	)		(1	)		(152	)
Settlements with tax authorities		―			(1	)		―
Lapse of statute of limitations		(3	)		(4	)		(4	)
Balance, December 31	$	24		$	308		$	211

(a) Decrease due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in shareholders’ equity, specifically within AOCI.

Included in the unrecognized tax benefits of $24 million, $308 million and $211 million for December 31, 2017, 2016 and 2015, respectively, are approximately $19 million, $12 million and $14 million, respectively that if recognized, would favorably affect the effective tax rate in a future period.

56

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Credco believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $3 million principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $3 million of unrecognized tax benefits, approximately $2 million relates to amounts that, if recognized, would impact the effective tax rate in a future period.

Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. For the years ended December 31, 2017, 2016 and 2015, Credco recognized tax benefits of approximately $1 million, $2 million and $1 million, respectively, for interest and penalties. Credco had approximately $5 million and $48 million accrued for the payment of interest and penalties as of December 31, 2017 and 2016, respectively. The reduction in accrued interest in 2017 includes approximately $42 million related to the resolution of an uncertain tax position with the IRS in January 2017, which had no net impact on the income tax provision.

Current taxes due to American Express or affiliates as of December 31, 2017 and 2016 were $786 million and $17 million, respectively. The amount due to American Express for 2017 includes a $729 million payable related to the deemed repatriation tax.

	Payments due by year
(Millions)		2018		2019 -  2020		2021 - 2022		2023 and thereafter		Total
Deemed repatriation tax(a)	$	―	$	122	$	116	$	491	$	729

(a) Represents Credco’s estimated obligation under the Tax Act to pay the deemed repatriation tax to American Express on certain non-U.S. earnings over eight years, which has been calculated on a provisional basis. This amount does not reflect other related non-cash accruals.

Net income taxes refunded to Credco during 2017 were approximately $308 million and net income taxes paid by Credco during 2016 were approximately $45 million.

Note 12 – Significant Credit Concentrations

Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to Credco’s total credit exposure. Credco’s primary credit exposure, Card Member receivables and loans and loans to affiliates and other, is diversified among its affiliated companies with Card Members that operate in diverse industries, economic sectors and geographic regions.

The following table details Credco’s maximum credit exposure of the on-balance sheet assets by category, as of December 31:

(Billions)	2017		2016
On-balance sheet:
Loans to affiliates and other	$	15	$	11
Institutions(a)		13		11
Individuals(b)		7		7
Financial Services(c)		1		2
Due from affiliates		―		1
Total on-balance sheet	$	36	$	32

(a) Primarily reflects Card Member receivables from other corporate institutions, which are governed by institutional credit risk management.

(b) Primarily reflects Card Member receivables and loans, which are governed by individual credit risk management.

(c) Represents banks, broker-dealers, insurance companies and savings and loan associations.

As of December 31, 2017 and 2016, Credco’s most significant concentration of credit risk was with Loans to affiliates and Corporate institutions, including Card Member receivables. Credco purchased Card Member receivables and loans from TRS and certain of its subsidiaries. TRS generally advances these amounts on an unsecured basis. However, TRS reviews each potential customer’s credit application and evaluates the applicant’s financial history and ability and willingness to repay. TRS also considers, on behalf of Credco, credit performance by customer tenure, industry and geographic location in managing credit exposure.

57

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table details Credco’s Card Member receivables and loans exposure in the United States and outside the United States as of December 31:

(Billions)	2017		2016
United States	$	15	$	14
Outside the United States		6		5
Total	$	21	$	19

Note 13 – Geographic Regions

Credco is principally engaged in the business of financing the Card Member receivables and loans of its affiliates. Management makes operating decisions and assesses performance based on an ongoing review of these financing activities, which constitute Credco’s only operating segment for financial reporting purposes.

The following table presents Credco’s revenues and pretax income in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment:

(Millions)	2017		2016		2015
Revenues
United States	$	779	$	440	$	442
Outside the United States		308		278		313
Consolidated	$	1,087	$	718	$	755
Pretax income
United States	$	9	$	16	$	111
Outside the United States		266		196		141
Consolidated	$	275	$	212	$	252

Note 14 – Quarterly Financial Data (Unaudited)

Quarterly financial information for the years ended December 31, 2017 and 2016 are summarized as follows:

(Millions)	2017									2016
Quarters ended		12/31			9/30		6/30		3/31		12/31		9/30		6/30		3/31
Revenues	$	296		$	286	$	253	$	252	$	179	$	180	$	179	$	180
Pretax income		72			85		52		66		20		70		65		57
Net (loss) income (a)	$	(791	)	$	72	$	57	$	59	$	29	$	60	$	57	$	51

(a) The fourth quarter of 2017 includes impact of the Tax Act (refer to Note 11).

58

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

Item 9A.             CONTROLS AND PROCEDURES

Credco’s management, with the participation of Credco’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Credco’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, Credco’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, Credco’s disclosure controls and procedures are effective and designed to ensure that the information required to be disclosed in Credco’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods specified in the applicable rules and forms, and that it is accumulated and communicated to Credco’s management, including Credco’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There have not been any changes in Credco’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during Credco’s fourth quarter that have materially affected, or are reasonably likely to materially affect, Credco’s internal control over financial reporting.

“Management’s Report on Internal Control over Financial Reporting” which sets forth management’s evaluation of internal control over financial reporting is set forth in “Financial Statements and Supplementary Data.”

Item 9B.             OTHER INFORMATION

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Exchange Act, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure is generally required even where the activities, transactions or dealings were conducted outside the United States by non-U.S. affiliates in compliance with applicable law, and whether or not the activities are sanctionable under U.S. law.

American Express Global Business Travel (GBT) and certain entities that may be considered affiliates of GBT have informed American Express that during the year ended December 31, 2017 approximately 300 visas were obtained from Iranian embassies and consulates around the world in connection with certain travel arrangements on behalf of clients. GBT had negligible gross revenues and net profits attributable to these transactions and intends to continue to engage in these activities on a limited basis so long as such activities are permitted under U.S. law.

59

PART III

Item 10.              DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Omitted pursuant to General Instruction I(2)(c) to Form 10-K.

Item 11.              EXECUTIVE COMPENSATION

Omitted pursuant to General Instruction I(2)(c) to Form 10-K.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Omitted pursuant to General Instruction I(2)(c) to Form 10-K.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Omitted pursuant to General Instruction I(2)(c) to Form 10-K.

Item 14.               PRINCIPAL ACCOUNTING FEES AND SERVICES

The Audit and Compliance Committee of the Board of Directors of American Express Company has appointed PricewaterhouseCoopers LLP as the independent registered public accounting firm to audit the Consolidated Financial Statements of Credco for the year ended December 31, 2017.

Each year, the Audit and Compliance Committee reviews the accounting firm’s qualifications, performance and independence in accordance with regulatory requirements and guidelines. At least every ten years, the Audit and Compliance Committee charter requires a comparison of resources available in other firms. The Committee conducted such a review in 2014.

Audit Fees

The aggregate fees billed or to be billed by PricewaterhouseCoopers LLP for professional services rendered for the audit of Credco’s Consolidated Financial Statements and services that were provided in connection with statutory and regulatory filings or engagements and other attest services were $928,951and $972,350 for the years ended December 31, 2017 and 2016, respectively.

Audit-Related Fees

Credco was not billed by PricewaterhouseCoopers LLP for any fees for audit-related services for 2017 or 2016.

Tax Fees

Credco was not billed by PricewaterhouseCoopers LLP for any tax fees for 2017 or 2016.

All Other Fees

Credco was not billed by PricewaterhouseCoopers LLP for any other fees for 2017 or 2016.

60

Policy on Pre-Approval of Services Provided by Independent Registered Public Accountants

Pursuant to the requirements of the Sarbanes-Oxley Act of 2002, the terms of the engagement of Credco’s independent registered public accounting firm are subject to the specific pre-approval of the Audit and Compliance Committee of American Express. All audit and permitted non-audit services to be performed by Credco’s independent registered public accounting firm require pre-approval by the Audit and Compliance Committee in accordance with pre-approval procedures established by the Committee. In accordance with SEC rules, the Audit and Compliance Committee’s pre-approval procedures have two different approaches to pre-approving audit and permitted non-audit services performed by Credco’s independent registered public accounting firm. Proposed services may be pre-approved pursuant to procedures established by the Audit and Compliance Committee that are detailed as to a particular class of service without consideration by the Committee of the specific case-by-case services to be performed if the relevant services are predictable and recurring. Credco refers to this pre-approval method as “general pre-approval”. If a class of service has not received general pre-approval, the service will require specific pre-approval by the Audit and Compliance Committee before such service is provided by Credco’s independent registered public accounting firm. All services provided by Credco’s independent registered public accounting firm have been pre-approved in accordance with these procedures. The procedures require all proposed engagements of Credco’s independent registered public accounting firm for services to Credco of any kind to be directed to the Controller of American Express and then submitted for approval to the Audit and Compliance Committee of American Express (or, should a time-sensitive need arise, to its chair) prior to beginning any services.

Other Transactions with PricewaterhouseCoopers LLP

American Express has a number of business relationships with individual member firms of the worldwide PricewaterhouseCoopers organization. American Express subsidiaries provide card services to some of these firms, and these firms pay fees to American Express subsidiaries. These services are in the normal course of business, and American Express provides them pursuant to arrangements that American Express offers to other similar clients.

PART IV

Item 15.              EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)	1.	Financial Statements:
		See Index to the Financial Statements on page 29.
	2.	Exhibits:
		See Exhibit Index.

Item 16.              Form 10-K Summary

Not applicable.

61

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AMERICAN EXPRESS CREDIT CORPORATION (Registrant)

Date:  March 1, 2018	By	/s/ David L. Yowan
		David L. Yowan
		Chief Executive Officer

Pursuant to the requirement of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Date:	March 1, 2018	By	/s/ David L. Yowan
			David L. Yowan
			Chief Executive Officer and Director
Date:	March 1, 2018	By	/s/ Leah A. Schweller
			Leah A. Schweller
			Chief Accounting Officer
Date:	March 1, 2018	By	/s/ Anderson Y. Lee
			Anderson Y. Lee
			Chief Financial Officer and Director
Date:	March 1, 2018	By	/s/ Vivian Y. Zhou
			Vivian Y. Zhou
			Director

62

EXHIBIT INDEXPursuant to Item 601 of Regulation S-K

Exhibit No.	Description	How Filed
3(a)	Registrant’s Certificate of Incorporation, as amended	Incorporated by reference to Exhibit 3(a) to Registrant’s Registration Statement on Form S-1 dated February 25, 1972 (File No. 2-43170).
3(b)	Registrant’s By-Laws, amended and restated as of November 24, 1980	Incorporated by reference to Exhibit 3(b) to Registrant’s Annual Report on Form 10-K (Commission File No. 1-6908) for the year ended December 31, 1985.
4(a)	Registrant’s Debt Securities Indenture dated as of June 9, 2006	Incorporated by reference to Exhibit 4(a) to Registrant’s Registration Statement on Form S-3 dated June 16, 2009 (File No. 333-160018).
4(b)	Form of Supplemental Indenture providing for an additional Trustee	Incorporated by reference to Exhibit 4(b) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).
4(c)	Form of Note with optional redemption provisions	Incorporated by reference to Exhibit 4(c) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).
4(d)	Form of Note with optional redemption and sinking fund provisions	Incorporated by reference to Exhibit 4(d) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).
4(e)	Form of Original Issue Discount Note with optional redemption provisions	Incorporated by reference to Exhibit 4(e) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).
4(f)	Form of Zero Coupon Note with optional redemption provisions	Incorporated by reference to Exhibit 4(f) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).
4(g)	Form of Variable Rate Note with optional redemption and repayment provisions	Incorporated by reference to Exhibit 4(g) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).
4(h)	Form of Extendible Note with optional redemption and repayment provisions	Incorporated by reference to Exhibit 4(h) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).
4(i)	Form of Fixed Rate Note	Incorporated by reference to Exhibit 4(i) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).

E-1

4(j)	Form of Floating Rate Note	Incorporated by reference to Exhibit 4(j) to Registrant’s Registration Statement on Form S-3 dated June 8, 2006 (File No. 333-134864).
4(k)	Form of Global Fixed Rate Note	Incorporated by reference to Exhibit 4(v) to Registrant’s Current Report on Form 8-K (Commission File No. 1-6908) dated May 14, 2003.
4(l)	Form of Global LIBOR Floating Rate Note	Incorporated by reference to Exhibit 4(w) to Registrant’s Current Report on Form 8-K (Commission File No. 1-6908) dated May 14, 2003.
4(m)	Form of extendible monthly securities	Incorporated by reference to Exhibit 4(n) to Registrant’s Current Report on Form 8-K (Commission File No. 1-6908) dated June 22, 2006.
4(n)	Conditions of Notes to be issued outside the United States under the Registrant’s Australian Debt Issuance Program	Incorporated by reference to Exhibit 4(v) to Registrant’s Annual Report on Form 10-K (Commission File No. 1-6908) for the year ended December 31, 2006.
4(o)	Trust Indenture providing for the issuance of Medium-Term Notes dated as of October 28, 2005	Incorporated by reference to Exhibit 4.1 to Registrant’s Quarterly Report on Form 10-Q (Commission File No. 1-6908) for the quarter ended September 30, 2009.
4(p)	First Supplemental Indenture dated as of January 22, 2008	Incorporated by reference to Exhibit 4.2 to Registrant’s Quarterly Report on Form 10-Q (Commission File No. 1-6908) for the quarter ended September 30, 2009.
4(q)	Second Supplemental Indenture dated as of January 22, 2008	Incorporated by reference to Exhibit 4.3 to Registrant’s Quarterly Report on Form 10-Q (Commission File No. 1-6908) for the quarter ended September 30, 2009.
4(r)	Form of Permanent Global Registered Fixed-Rate Medium-Term Senior Note, Series D	Incorporated by reference to Exhibit 4(i) to Registrant’s Registration Statement on Form S-3 dated June 16, 2009 (File No. 333-160018).

E-2

4(s)	Form of Permanent Global Registered Floating Rate Medium-Term Senior Note, Series D	Incorporated by reference to Exhibit 4(j) to Registrant’s Registration Statement on Form S-3 dated June 16, 2009 (File No. 333-160018).
4(t)	Form of Permanent Global Registered Fixed Rate Medium-Term Senior Note, Series E	Incorporated by reference to Exhibit 4(i) to Registrant’s Registration Statement on Form S-3 dated June 18, 2012 (File No. 333-182197).
4(u)	Form of Permanent Global Registered Floating Rate Medium-Term Senior Note, Series E	Incorporated by reference to Exhibit 4(j) to Registrant’s Registration Statement on Form S-3 dated June 18, 2012 (File No. 333-182197).
4(v)	Form of Permanent Global Registered Fixed Rate Medium-Term Senior Note, Series F	Incorporated by reference to Exhibit 4(i) to Registrant’s Registration Statement on Form S-3 dated May 13, 2015 (File No. 333-204124).
4(w)	Form of Permanent Global Registered Floating Rate Medium-Term Senior Note, Series F	Incorporated by reference to Exhibit 4(j) to Registrant’s Registration Statement on Form S-3 dated May 13, 2015 (File No. 333-204124).
4(x)	Supplemental Indenture between the Registrant and The Bank of New York Mellon, dated November 22, 2016	Incorporated by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8.K (Commission File No. 1-6908) dated November 15, 2016.
4(y)	Form of Global Note for the Registrant’s 0.625% Senior Notes due 2021	Incorporated by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8.K (Commission File No. 1-6908) dated November 15, 2016.
4(z)	Second Supplemental Indenture between the Registrant and The Bank of New York Mellon, dated as of November 30, 2016	Incorporated by reference to Exhibit 4(aa) to Registrant’s Annual Report on Form 10-K (Commission File No. 1-6908) for the year ended December 31, 2016.
4(aa)	The Registrant hereby agrees to furnish the Commission, upon request, with copies of the instruments defining the rights of holders of each issue of long-term debt of the Registrant for which the total amount of securities authorized thereunder does not exceed 10 percent of the total assets of the Registrant
10(a)	Receivables Agreement dated as of January 1, 1983 between the Registrant and American Express Travel Related Services Company, Inc.	Incorporated by reference to Exhibit 10(b) to Registrant’s Annual Report on Form 10-K (Commission File No. 1-6908) for the year ended December 31, 1987.

E-3

12.1	Computation in Support of Ratio of Earnings to Fixed Charges of American Express Credit Corporation	Electronically filed herewith.
12.2	Computation in Support of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends of American Express Company	Electronically filed herewith.
23	Consent of PricewaterhouseCoopers LLP Independent Registered Public Accounting Firm	Electronically filed herewith.
31.1	Certification of David L. Yowan, Chief Executive Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended	Electronically filed herewith.
31.2	Certification of Anderson Y. Lee, Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended	Electronically filed herewith.
32.1	Certification of David L. Yowan, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Electronically filed herewith.
32.2	Certification of Anderson Y. Lee, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Electronically filed herewith.
101.INS	XBRL Instance Document	Electronically filed herewith.
101.SCH	XBRL Taxonomy Extension Schema Document	Electronically filed herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	Electronically filed herewith.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document	Electronically filed herewith.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document	Electronically filed herewith.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	Electronically filed herewith.

E-4

EX-12.1

EXHIBIT 12.1

AMERICAN EXPRESS CREDIT CORPORATION COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

	Years Ended December 31,
(Dollars in Millions)	2017				2016			2015			2014				2013
Earnings:
Net (loss) income		$	(603	)		$	197		$	214		$	353			$	446
Income tax provision (benefit)			878				15			38			(35	)			(96	)
Interest expense including interest expense to affiliates			553				341			360			502				597
Total earnings		$	828			$	553		$	612		$	820			$	947
Fixed charges ― Interest expense including interest expense to Affiliates		$	553			$	341		$	360		$	502			$	597
Ratio of earnings to fixed charges			1.50				1.62			1.70			1.63				1.59

Interest expense does not include interest on liabilities recorded under GAAP governing accounting for uncertainty in income taxes as Credco’s policy is to classify such interest in income tax provision in the Consolidated Statements of Income.

EX-12.2

EXHIBIT 12.2

AMERICAN EXPRESS COMPANY COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND

PREFERRED STOCK DIVIDENDS

	Years Ended December 31,
(Dollars in Millions)	2017		2016		2015		2014		2013
Earnings:
Pretax income from continuing operations	$	7,414	$	8,096	$	7,938	$	8,991	$	7,888
Interest expense (a)		2,112		1,704		1,623		1,707		1,958
Other adjustments (b)		118		101		118		402		133
Total earnings	$	9,644	$	9,901	$	9,679	$	11,100	$	9,979
Fixed charges:
Interest expense	$	2,112	$	1,704	$	1,623	$	1,707	$	1,958
Other adjustments (c)		51		56		62		79		93
Total fixed charges	$	2,163	$	1,760	$	1,685	$	1,786	$	2,051
Preferred stock dividends (d)	$	219	$	80	$	62	$	―	$	―
Total fixed charges and preferred stock dividends	$	2,382	$	1,840	$	1,747	$	1,786	$	2,051
Ratio of earnings to fixed charges		4.46		5.63		5.74		6.22		4.87
Ratio of earnings to combined fixed charges and preferred stock dividends		4.05		5.38		5.54		6.22		4.87

(a) Included in interest expense is interest expense related to the Card Member lending and Card Member charge card and other activities in the Consolidated Statements of Income. Interest expense does not include interest on liabilities recorded under GAAP governing accounting for uncertainty in income taxes. American Express’ policy is to classify such interest in income tax provision in the Consolidated Statements of Income.

(b) For purposes of the “earnings” computation, “other adjustments” include adding the amortization of capitalized interest, the distributed net income of affiliates accounted for under the equity method, the noncontrolling interest in the earnings of majority-owned subsidiaries with fixed charges, and the interest component of rental expense, and subtracting undistributed net income of affiliates accounted for under the equity method.

(c) For purposes of the “fixed charges” computation, “other adjustments” include capitalized interest costs and the interest component of rental expense.

(d) Preferred stock dividends represent pre-tax earnings that would be required to cover any preferred stock dividends, computed using our effective tax rate for the period.

EX-23

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (No. 333-204124) of American Express Credit Corporation of our report dated March 1, 2018 relating to the consolidated financial statements of American Express Credit Corporation, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

New York, New York March 1, 2018

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David L. Yowan, certify that:

1. I have reviewed this Annual Report on Form 10-K of American Express Credit Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 1, 2018	/s/ David L. Yowan
	David L. Yowan
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Anderson Y. Lee, certify that:

1. I have reviewed this Annual Report on Form 10-K of American Express Credit Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 1, 2018	/s/ Anderson Y. Lee
	Anderson Y. Lee
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of American Express Credit Corporation (the “Company”) for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), David L. Yowan, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ David L. Yowan

Name: David L. Yowan

Title:   Chief Executive Officer

Date:   March 1, 2018

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-K or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of American Express Credit Corporation (the “Company”) for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Anderson Y. Lee, as Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Anderson Y. Lee

Name: Anderson Y. Lee

Title:   Chief Financial Officer

Date:   March 1, 2018

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-K or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.2 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 01, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	AMERICAN EXPRESS CREDIT CORPORATION
Entity Central Index Key	0000004969
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 0
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,504,938

XML

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues
Discount revenue earned from purchased Card Member receivables and loans	$ 760	$ 471	$ 479
Interest income from affiliates and other	279	207	246
Finance revenue	48	40	30
Total revenues	1,087	718	755
Expenses
Provisions for losses	244	151	165
Interest expense	495	317	350
Interest expense to affiliates	58	24	10
Other, net	15	14	(22)
Total expenses	812	506	503
Pretax income	275	212	252
Income tax provision	878	15	38
Net (loss) income	$ (603)	$ 197	$ 214

XML

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (603)	$ 197	$ 214
Other comprehensive income:
Foreign currency translation adjustments, net of tax	265	(107)	(369)
Other comprehensive income (loss)	265	(107)	(369)
Comprehensive (loss) income	$ (338)	$ 90	$ (155)

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 196	$ 1,211
Card Member receivables, less reserves	20,131	18,108
Card Member loans, less reserves	556	471
Loans to affiliates and other	14,527	10,659
Due from affiliates	189	997
Other assets	290	490
Total assets	35,889	31,936
Liabilities
Short-term debt	1,308	2,993
Short-term debt to affiliates	5,997	4,559
Long-term debt	24,153	20,512
Long-term debt to affiliates	270	0
Total debt	31,728	28,064
Due to affiliates	1,988	1,517
Accrued interest and other liabilities	302	146
Total liabilities	34,018	29,727
Shareholder's Equity
Common stock, $0.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares	0	0
Additional paid-in-capital	161	161
Retained earnings	2,708	3,311
Accumulated other comprehensive loss:
Foreign currency translation adjustments, net of tax	(998)	(1,263)
Total accumulated other comprehensive loss	(998)	(1,263)
Total shareholder's equity	1,871	2,209
Total liabilities and shareholder's equity	$ 35,889	$ 31,936

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assets
Card Member receivables, reserves	$ 145	$ 110
Card Member loans, reserves	$ 5	$ 5
Shareholder's Equity
Common stock, par value	$ 0.1	$ 0.1
Common stock, authorized	3.0	3.0
Common stock, issued	1.5	1.5
Common stock, outstanding	1.5	1.5
Accumulated other comprehensive loss:
Foreign currency translation adjustments, tax	$ 17	$ 329

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities
Net (loss) income		$ (603)	$ 197	$ 214
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Provisions for losses		244	151	165
Amortization of underwriting expense		28	23	30
Deferred taxes		55	14	8
Changes in operating assets and liabilities:
Interest, taxes and other amounts due to/from affiliates		1,088	(39)	(262)
Other operating assets and liabilities		(378)	475	458
Net cash provided by operating activities		434	821	613
Cash Flows from Investing Activities
Net increase in Card Member receivables and loans, including held for sale	[1]	(1,998)	(1,059)	(3,592)
Increase in interest bearing restricted cash to affiliates		(100)	0	0
Net (increase) decrease in loans to affiliates and other		(1,245)	2,973	152
Net (decrease) increase in due to/from affiliates		(1,718)	(515)	2,605
Net cash (used in) provided by investing activities		(5,061)	1,399	(835)
Cash Flows from Financing Activities
Net (decrease) increase in short-term debt		(1,685)	873	1,351
Net increase (decrease) in short-term debt to affiliates		1,414	(861)	1,112
Proceeds from long-term debt		8,438	3,791	6,522
Principal payments of long-term debt		(4,900)	(4,961)	(8,545)
Proceeds from long-term debt to affiliates		270	0	0
Dividends paid		0	0	(115)
Net cash provided by (used in) financing activities		3,537	(1,158)	325
Effect of foreign currency exchange rates on cash and cash equivalents		75	(24)	(4)
Net (decrease) increase in cash and cash equivalents		(1,015)	1,038	99
Cash and cash equivalents at beginning of year		1,211	173	74
Cash and cash equivalents at end of year		$ 196	$ 1,211	$ 173

[1] Refer to Note 1 for additional information

XML

Consolidated Statement of Cash Flows (Textuals) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Non cash investing activities
Transfer of Card Member loans and receivables to Card Member loans and receivables held for sale		$ 0	$ 0	$ 21
Replacement of due from affiliate balance with new loan arrangement with affiliates	[1]	$ 2,129	$ 0	$ 0

[1] To more effectively manage inter-affiliate funding, Credco entered into new loan agreements in July 2017 with American Express Limited and American Express International, Inc. The new loans were funded by the assignment of its existing loan to American Express Company and outstanding due from affiliate balance with TRS.

XML

Consolidated Statement of Shareholder's Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Beginning balance at Dec. 31, 2014	$ 2,389	$ 0	$ 161	$ (787)	$ 3,015
Net (loss) income	214				214
Other comprehensive income (loss)	(369)			(369)
Cash Dividends Paid	(115)				(115)
Ending balance at Dec. 31, 2015	2,119	0	161	(1,156)	3,114
Net (loss) income	197				197
Other comprehensive income (loss)	(107)			(107)
Cash Dividends Paid	0				0
Ending balance at Dec. 31, 2016	2,209	0	161	(1,263)	3,311
Net (loss) income	(603)				(603)
Other comprehensive income (loss)	265			265
Cash Dividends Paid	0				0
Ending balance at Dec. 31, 2017	$ 1,871	$ 0	$ 161	$ (998)	$ 2,708

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Disclosure Text Block [Abstract]

Summary of Significant Accounting Policies

Note 1– Summary of Significant Accounting Policies

The Company

American Express Credit Corporation (Credco), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a wholly owned subsidiary of American Express Company (American Express).

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express charge cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest-earning revolving loans are primarily funded by subsidiaries of TRS other than Credco.

Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis; however, there can be no assurance that the terms of these arrangements are the same as would be negotiated between independent, unrelated parties.

American Express provides Credco with financial support with respect to maintenance of its minimum overall 1.25 fixed charge coverage ratio, which is achieved by charging appropriate discount rates on the purchases of receivables Credco makes from, and the interest rates on the loans Credco provides to, TRS and other American Express subsidiaries. Each monthly period, the discount and interest rates are determined to generate income for Credco that is sufficient to maintain its minimum fixed charge coverage ratio.The revenue earned by Credco from purchasing Card Member receivables and loans at a discount is reported as discount revenue on the Consolidated Statements of Income.

Principles of Consolidation

The Consolidated Financial Statements of Credco are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated.

Credco consolidates entities in which it holds a controlling financial interest. For voting interest entities, Credco is considered to hold a controlling financial interest when it is able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, Credco is considered to hold a controlling financial interest when it is determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE.

Foreign Currency

Monetary assets and liabilitiesdenominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of the reporting period; non-monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction;revenues and expenses are translated at the average month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholder’s equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency are reported net in Other expenses, inCredco’s Consolidated Statements of Income. Net foreign currency transaction gains amounted to approximately $21 million, $1 million and $14 million in 2017, 2016 and 2015, respectively.

Amounts Based on Estimates and Assumptions

Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member losses on receivables and loans, fair value measurements and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ.

Discount Revenue Earned from Purchased Card Member Receivables and Loans

Credco earns discount revenue from purchasing Card Member receivables and loans at a discount to par value. The discount is deferred and recognized as revenue over the period that the receivables and loans are estimated to be outstanding or funded. Estimates are based on the historical average life of Card Member receivables and loans.

Interest Income from Affiliates

Interest income from affiliates is earned on interest-bearing loans made by Credco to affiliates. Interest income is accrued primarily using the average daily balance method on loans and is recognized based on the outstanding loan principal amount and interest rates specified in the agreements until the outstanding loan balance is paid.

Finance Revenue

Finance revenue is assessed using the average daily balance method for Card Member loans and is recognized based upon the loan principal amount outstanding in accordance with the terms of the applicable account agreement until the outstanding balance is paid or written off.

Interest Expense

Interest expense includes interest incurred primarily to fund Card Member receivables and loans, general corporate purposes and liquidity needs, and is recognized as incurred.

Cash and Cash Equivalents

Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, and other highly liquid investments with original maturities of 90 days or less.

Other Significant Accounting Policies

The following table identifies Credco’s other significant accounting policies, the Note and page where the Note can be found.

	Note
Significant Accounting Policy	Number	Note Title	Page
Card Member Receivables and Loans	Note 2	Card Member Receivables and Loans	38
Reserves for Losses – Card Member Receivables and Loans	Note 3	Reserves for Losses	41
Derivative Financial Instruments and Hedging Activities	Note 6	Derivatives and Hedging Activities	43
Fair Value Measurements	Note 7	Fair Values	47
Income Taxes	Note 11	Income Taxes	54

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition. The accounting standard establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. The guidance, as amended and effective January 1, 2018, supersedes most of the revenue recognition requirements in effect prior to that date.

Most revenue associated with financial instruments, including interest income, loan origination fees and credit card fees, is outside the scope of the new revenue standard. Gains and losses on investment securities, derivatives and sales of financial instruments are similarly excluded from the scope. As Credco is engaged in the business of financing Card Member receivables and loans,and in providing loans to certain of its affiliates, thenew revenue standard has no impact on the Consolidated Financial Statements and underlying operational processes and accounting policies. Credco’s implementation efforts have included analyzing revenues and related costs to identify any within the scope of the new standard to determine if any changes will be required. Credco has completed the evaluation of the potential impact of this guidance on the timing, recognition, and presentation of revenues and expenses and has not identified any changes.

In January 2016, the FASB issued new accounting guidance on the recognition and measurement of financial assets and financial liabilities, which was effective and adopted by Credco as of January 1, 2018. The guidance, makes targeted changes to GAAP; specifically to the classification and measurement of equity securities, and to certain disclosure requirements associated with the fair value of financialassets and liabilities. The adoption of the guidance, as of January 1, 2018,did not have a material impact on Credco’s financial position, results of operations and cash flows. Credco implemented changes to its accounting policies, business processes and internal controls in support of the new guidance.

In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. Credco does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the CECL model will alter the assumptions used in estimating credit losses on Card Member receivables and loans, and may result in material increases to Credco’s credit reserves as the new guidance involves earlier recognition of expected losses for the life of the assets. American Express has established anenterprise-wide, cross-discipline governance structure to implement the new standard,and continues to identify and conclude on key interpretive issues along withevaluating existing American Express’ credit loss forecasting models and processes in relation to the new guidance to determine what modifications may be required.

In November 2016, the FASB issued new accounting guidance on the cash flow classification and presentation of changes in restricted cash or restricted cash equivalents, effective January 1, 2018. The guidance provides specifically that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents on the statement of cash flows. Credco holds a restricted cash balance such that it becomes a material change to the way balances will be presented on the statement of cash flows. Beginning with the quarter ending March 31, 2018, Credco’s consolidated statements of cash flows will reflect the adoption of the standard using the full retrospective method, which applies the new standard to each prior reporting period presented.

In August 2017, the FASB issued new accounting guidance providing targeted improvements to the accounting for hedging activities, effective January 1, 2019, with early adoption permitted in any interim period or fiscal year before the effective date. The guidance introduces a number of amendments, several of which are optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. Effective January 1, 2018, Credcoadopted the guidance with no material impact on its financial position, results of operations and cash flows, along with associated changes to its accounting policies, business processes and internal controls in support of the new guidance.

In February 2018, as a result of the enactment of the Tax Cuts and Jobs Act (the Tax Act), the FASB issued new accounting guidance on the reclassification of certain tax effects from AOCI to retained earnings. The optional guidance is effective January 1, 2019, with early adoption permitted. Credco is evaluating whether it will adopt the new guidance along with any impacts on the Credco’s financial position, results of operations and cash flows, none of which are expected to be material.

Other Information

During the fourth quarter of 2015, American Express determined it would sell Card Member loans and receivables related to certain of its cobrand partnerships. As a result of the determination, Credco classified Card Member receivables related to the Costco portfolio purchased from American Express Receivables Financing Corporation VIII LLC (RFC VIII) in the form of participation interest as Card Member receivables held for sale (HFS) on its Consolidated Balance Sheets as of December 31, 2015 and March 31, 2016.

During the first half of 2016, American Express completed the sales of substantially all of its outstanding Card Member loans and receivables HFS, and consequently Credco also sold back all of its participation interests in Card Member receivables HFS to RFC VIII.

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Card Member Receivables and Loans

12 Months Ended

Dec. 31, 2017

Card Member Receivables and Loans [Abstract]

Card Member Receivables and Loans

Note 2– Card Member Receivables and Loans

American Express’ charge and credit card products result in the generation of Card Member receivables and Card Member loans, respectively.

Card Member Receivables

Card Member receivables represent amounts due on American Express charge card products. For American Express, the Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant. Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are established to limit the maximum exposure for American Express. Charge Card Members generally must pay the full amount billed each month.

Credco records these Card Member receivables at the time they are purchased from TRS and certain of its subsidiaries that issue the card (card issuers).Card Member receivable balances are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 3).Card Member receivables also include participation interests purchased from an affiliate. Participation interests in Card Member receivables represent undivided interests in the cash flows of the non-interest-earning Card Member receivables. In conjunction with TRS’ securitization program, Credco, through its wholly owned subsidiary, Credco Receivables Corporation (CRC), purchases participation interests from American Express Receivables Financing Corporation VIII LLC (RFC VIII), a wholly owned subsidiary of TRS that receives undivided, pro rata interests in Card Member receivables transferred to the American Express Issuance Trust (the Charge Trust), by TRS. The Charge Trust is a special purpose entity that is consolidated by TRS.

Card Member receivables as of December 31, 2017 and 2016 consisted of:

(Millions)		2017		2016
U.S. Consumer Services	$	3,557	$	3,518
International Consumer and Network Services (a)		1,827		1,526
Global Commercial Services (b)		14,892		13,174
Card Member receivables (c)		20,276		18,218
Less: Reserve for losses		145		110
Card Member receivables, net (d)	$	20,131	$	18,108

• Comprised of International consumer card business.
• Comprised of Corporate and Small Business Services.
• Net of deferred discount revenue totaling $43 million and $27 million as of December 31, 2017 and 2016, respectively.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member Loans

Card Member loans represent revolving amounts due on American Express cards. For American Express lending card products, these Card Member loans are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and elect to revolve a portion of the outstanding balance by entering into a revolving payment arrangement with American Express. These loans have a range of terms such as credit 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 payments based on pre-established amounts and the amounts that Card Members choose to revolve are subject to finance charges.

Credco records these Card Member loans at the time they are purchased from TRS and certain of its subsidiaries that issue the card (card issuers). Card Member loans are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 3), and include principaland any related accrued interest and fees. American Express’ policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that will not be collected.

Card Member loans as of December 31, 2017 and 2016 consisted of:

(Millions)		2017		2016
International Consumer and Network Services (a)	$	561	$	476
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	556	$	471

• Comprised of International consumer card business.
• Card Member loans modified in a TDR program were immaterial.

Card Member Receivables and Loans Aging

Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member receivables and Card Member loans as of December 31, 2017 and 2016:

					30-59		60-89
					Days		Days		90+ Days
2017(Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer Services	$	3,531	$	10	$	6	$	10	$	3,557
	International Consumer and Network Services		1,805		8		5		9		1,827
	Global Commercial Services
	Global Small Business Services		1,397		5		4		6		1,412
	Global Corporate Payments (a)		(b)		(b)		(b)		112		13,480
Card Member Loans:
	International Consumer and Network Services	$	557	$	1	$	1	$	2	$	561
					30-59		60-89
					Days		Days		90+ Days
2016(Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer Services	$	3,501	$	9	$	3	$	5	$	3,518
	International Consumer and Network Services		1,506		6		4		10		1,526
	Global Commercial Services
	Global Small Business Services		1,202		9		2		5		1,218
	Global Corporate Payments (a)		(b)		(b)		(b)		108		11,956
Card Member Loans:
	International Consumer and Network Services	$	472	$	1	$	1	$	2	$	476

• For Global Corporate Payments Card Member receivables in Global Commercial Services, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if collection procedures are initiated on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).
• Delinquency data for periods other than 90 days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

Credit Quality Indicators for Card Member Receivables and Loans

The following tables present the key credit quality indicators as of or for the years ended December 31:

		2017				2016
				30+ Days				30+ Days
		Net		Past Due		Net		Past Due
		Write-off		as a % of		Write-off		as a % of
		Rate	(a)	Total		Rate	(a)	Total
Card Member Receivables:
	U.S. Consumer Services	0.83	%	0.73	%	0.54	%	0.48	%
	International Consumer and Network Services	1.50	%	1.20	%	1.86	%	1.31	%
	Global Small Business Services	1.11	%	1.06	%	1.03	%	1.31	%
Card Member Loans:
	International Consumer and Network Services	1.24	%	0.71	%	1.15	%	0.84	%
		2017				2016
		Net Loss		90+ Days		Net Loss		90+ Days
		Ratio as a		Past		Ratio as a		Past
		% of		Billing		% of		Billing
		Charge		as a % of		Charge		as a % of
		Volume	(b)	Receivables		Volume	(b)	Receivables
Card Member Receivables:
	Global Corporate Payments	0.08	%	0.83	%	0.06	%	0.90	%

• Represents the amount of Card Member receivables or Card Member loans owned by Credco that are written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods indicated.
• Represents the amount of Card Member receivables owned by Credco that are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated.

Refer to Note 3 for additional indicators, including external environmental qualitative factors, management considers in its monthly evaluation process for reserves for losses.

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Reserves for Losses

12 Months Ended

Dec. 31, 2017

Reserves for Losses [Abstract]

Reserves for Losses

Note 3–Reserves for Losses

Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantitative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitativereserves for certain external and internal qualitative factors, which may increase or decrease the reserves for losses on Card Member receivables and loans. These external factors include employment, spend, sentiment, housing and credit, and changes in the legal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member receivables or loans and net write-off coverage ratios.

Card Member receivables and loans balances are written off when management considers amounts to be uncollectible, whichis generally determined by the number of days past due and is typically no later than 180 days past due.Card Member receivables andloans in bankruptcy or owed by deceased individuals are generally written off upon notification, and recoveries are recognized as they are collected.

This Note is presented excluding amounts associated with the Card Member receivables HFS as of December 31, 2015; Credco did not have any Card Member receivables HFS as of December 31, 2017 or 2016.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31:

(Millions)		2017		2016			2015
Balance, January 1		$	110	$	114	$	94
	Provisions		238		145		160
	Other credits(a)		58		20		32
	Net write-offs(b)		(198)		(146)		(157)
	Other debits(c)(d)		(63)		(23)		(15)
Balance, December 31		$	145	$	110	$	114

• Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $9.4 billion, $5.4 billion and $5.8 billion for the years ended December 31, 2017, 2016 and 2015, respectively.
• Net of recoveries of $95 million, $91 million and $100 million for the years ended December 31, 2017, 2016 and 2015, respectively.
• Primarily reserve balances related to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold totaled $9.4 billion, $5.7 billion and $2.6 billion for the years ended December 31, 2017, 2016 and 2015, respectively.
• 2015 includes the impact of the transfer of reserves relating to the HFS portfolio, which was not significant.

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)		2017		2016		2015
Balance, January 1		$	5	$	4	$	3
	Provisions		6		6		5
	Net write-offs(a)		(6)		(5)		(4)
Balance, December 31		$	5	$	5	$	4

Net of recoveries of $1 million foreach of the years ended December 31, 2017, 2016 and 2015.

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Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Debt

Note 4–Debt

Short-Term Debt

Credco’s short-term debt outstanding(excluding short-term debt to affiliates), defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows:

		2017				2016
		Outstanding	Year-End Stated			Outstanding	Year-End Stated
(Millions, except percentages)		Balance	Rate on Debt(a)			Balance	Rate on Debt(a)
Commercial paper(b)	$	1,168	1.54	%	$	2,993	1.13	%
Other short-term borrowings(c)		140	1.27			―	―
Total	$	1,308	1.51	%	$	2,993	1.13	%

• For floating-rate issuances, the stated interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2017and 2016.
• Average commercial paper outstanding was $1,076 million and $491 million in 2017 and 2016, respectively.
• Represents interest-bearing overdrafts with banks.

Long-Term Debt

Credco’s long-term debt outstanding, defined as debt with original contractual maturitydates of one year or greater, as of December 31 was as follows:

					2017							2016
									Year-End							Year-End
			Original				Year-End		Effective					Year-End		Effective
			Contractual				Stated		Interest					Stated		Interest
(Millions, except			Maturity		Outstanding		Rate		Rate with			Outstanding		Rate		Rate with
percentages)			Dates		Balance	(a)	on Debt	(b)	Swaps	(b)(c)		Balance	(a)	on Debt	(b)	Swaps	(b)(c)
Fixed Rate
	Senior Notes		2018-2027	$	19,652		2.24	%	2.27	%	$	16,201		1.98	%	1.44	%
Floating Rate
	Senior Notes		2018-2022		4,550		2.09		―			4,350		1.52		―
Unamortized
	Underwriting
		Fees			(49)							(39)
Total Long-Term
	Debt			$	24,153		2.21	%			$	20,512		1.88	%

• 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 6 for more details on Credco’s treatment of fair value hedges.
• For floating-rate issuances, the stated and effective interest rates are weighted based on outstanding balances and rates in effect as of December 31, 2017 and 2016.
• Effective interest rates are only presented when swaps are in place to hedge the underlying debt.

Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2017 were as follows:

(Millions)
2018		$	3,654
2019			7,150
2020			6,600
2021			2,939
2022			2,050
Thereafter			2,000
	Total		24,393
Unamortized Underwriting Fees			(49)
Unamortized Discount and Premium			(36)
Impacts due to Fair Value Hedge Accounting			(155)
Total Long-Term Debt		$	24,153

Credco maintained a bank line of credit of $3.5 billion and $3.0 billion as of December 31, 2017 and 2016, respectively, all of which was undrawn as of the respective dates. These undrawn amounts support contingent funding needs. Credco paid $ 6.0 million and $2.2 million in fees to maintain these lines for the years ended December 31, 2017 and 2016, respectively. The availability of the credit line is subject to compliance with certain financial covenants, including the maintenance of a 1.25 ratio of earnings to fixed charges. As of December 31, 2017, Credco’s ratio of earnings to fixed charges was 1.50. As of December 31, 2017 and 2016, Credco was not in violation of any of its debt covenants.

The committed facility does not contain material adverse change clauses that would preclude borrowing under the credit facility. Additionally, the facility may not be terminated should there be a change in Credco’s credit ratings.

Credco paid total interest, primarily related to short- and long-term debt, and corresponding interest rate swaps of $0.5 billion for the year ended December 31, 2017, and $0.3 billion for both the years ended December 31, 2016 and 2015.

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Restrictions as to Dividends and Limitations on Indebtedness

12 Months Ended

Dec. 31, 2017

Restrictions On Dividends And Limitations On Indebetedness [Abstract]

Restrictions as to Dividends and Limitations on Indebtedness

Note 5– Restrictions as to Dividends and Limitations on Indebtedness

The debt instruments issued by Credco impose the requirement that Credco maintain a minimum consolidated net worth of $50 million, which limits the amount of dividends Credco can pay to its parent. There are no limitations on the amount of debt that can be issued by Credco, provided it maintains the minimum fixed charge coverage ratio of 1.25.

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Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Note 6– Derivatives and Hedging Activities

Credco uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates and foreign exchange rates, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of Credco’s market risk management. Credco does not transact in derivatives for trading purposes.

Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Credco’s market risk exposures include:

• Interest rate risk in its funding activities; and
• Foreign exchange risk related to earnings, funding, transactions and investments in currencies other than the U.S. dollar.

American Express centrally monitors market risks using market risk limits and escalation triggers as defined in its Asset/Liability Management Policy.

Interest rate exposure within charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt compared to fixed-rate debt. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations or to convert variable-rate debt obligations to fixed-rate obligations. Credco may change the mix between variable-rate and fixed-rate funding based on changes in business volumes and mix, among other factors.

Foreign exchange risk is generated by funding foreign currency Card Member receivables and loans with U.S. dollars, foreign currency balance sheet exposures, foreign subsidiary equity and foreign currency earnings in entities outside the United States. Credco’s foreign exchange risk is managed primarily by entering into agreements to buy and sell currencies on a spot basis or by hedging this market exposure to the extent it is economically justified, through various means, including the use of derivatives such as foreign exchange forwards and cross-currency swap contracts. Exposures from foreign subsidiary equity in Credco’s entities outside the United States are hedged through the use of foreign exchange forwards executed either by Credco or TRS.

Derivatives may give rise to counterparty credit risk, which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to an uncollateralized derivative exposure. This risk is managed by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential value of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are required to be pre-approved by American Express and rated as investment grade, and counterparty risk exposures are centrally monitored.

Additionally, in order to mitigate the bilateral counterparty credit risk associated with derivatives, Credco has in certain instances entered into master netting agreements with its derivative counterparties, which provide a right of offset for certain exposures between the parties. A majority of Credco’s derivative assets and liabilities as of December 31, 2017 and 2016 are subject to master netting agreements with its derivative counterparties. Credco has no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets.To further mitigate bilateral counterparty credit risk, Credco exercises its rights under executed credit support agreements with certain of its derivative counterparties. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All derivative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts.

In relation to Credco’s credit risk, under the terms of the derivative agreements it has with its various counterparties, Credco is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty.Based on its assessment of the credit risk of Credco’s derivative counterparties as of December 31, 2017 and 2016, no credit risk adjustment to the derivative portfolio was required.

Credco’s derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below. Refer to Note 7 for a description of Credco’s methodology for determining the fair value of derivatives.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31:

		Other Assets				Other Liabilities
		Fair Value				Fair Value
(Millions)		2017		2016		2017		2016
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)		$	―	$	22	$	―	$	69
Net investment hedges - Foreign exchange contracts			54		151		38		1
Total derivatives designated as hedging instruments			54		173		38		70
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		9		128		57		28
Total derivatives, gross			63		301		95		98
Less: Cash collateral netting (b)(c)			―		(2)		―		(49)
Derivative asset and derivative liability netting (d)			(26)		(27)		(26)		(27)
Total derivatives, net		$	37	$	272	$	69	$	22

• Effective January 2017, the Central Clearing Party (CCP) changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as opposed to collateral. As of December 31, 2017, there was no unsettled derivative asset or liability with the CCP.
• Represents the offsetting of the fair value of bilateral interest rate contractswith the right to reclaim cash collateral or the obligation to return cash collateral.
• Credco held no non-cash collateral as ofDecember 31,2017 and 2016, respectively. To mitigate counterparty credit risk related to derivatives, Credco may accept non-cash collateral from its derivatives counterparties. Additionally, Credco posted $115 million and $144 million as of December 31, 2017 and 2016, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other assets on Credco’s Consolidated Balance Sheets and are not netted against the derivative balances.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

Derivative Financial Instruments that Qualify for Hedge Accounting

Derivatives executed for hedge accounting purposes are documented and designated as such when Credco enters into the contracts. In accordance with its risk management policies, Credco structures its hedges with terms similar to those of the item being hedged. Credco formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, Credco will discontinue the application of hedge accounting.

Fair Value Hedges

A fair value hedge involves a derivative designated to hedge Credco’s exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof that is attributable to a particular risk.

Credco is exposed to interest rate risk associated with its fixed-rate long-term debt obligations. At the time of issuance, certain fixed-rate debt obligationsare designated infair value hedging relationships using interest rate swaps to economically convert the fixed interest rate to a floating interest rate.Credco has $16.2 billion and $14.8 billionof fixed-rate debt obligations designated in fair value hedging relationships as of December 31, 2017 and 2016, respectively.

To the extent the fair value hedge is effective, the gain or loss on the hedging instrument offsets the loss or gain on the hedged item attributable to the hedged risk. Any difference between the changes in the fair value of the derivative and the changes in the hedged item is referred to as hedge ineffectiveness and is reported as a component of Other expenses. Hedge ineffectiveness may be caused by differences between a debt obligation’s interest rate and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the fair value of the interest rate swap. Furthermore, hedge ineffectiveness may be caused by changes in 1-month LIBOR, 3-month LIBOR and the overnight indexed swap rate, as spreads between these rates impact the fair value of the interest rate swap without causing an exact offsetting impact to the fair value of the hedged debt.

For the periods presented, Credco considers all fair value hedges to be highly effective and did not de-designate any fair value hedge relationships.

The following table summarizes the gains (losses) recognized in Other expenses associated with Credco’s fair value hedges for the years ended December 31:

(Millions)		2017		2016		2015
Interest rate derivative contracts	$	(129)	$	(102)	$	(31)
Hedged items		100		91		44
Net hedge ineffectiveness (losses) gains	$	(29)	$	(11)	$	13

Credco also recognized a net reduction in interest expense on long-term debt of $53 million, $126 million and $177 million for the years ended December 31, 2017, 2016 and 2015, respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges.

Net Investment Hedges

A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. Credco primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to changes in currency exchange rates on Credco’s investments in non-U.S. subsidiaries. The effective portion of the gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment were losses of $174 million and gains of $80 million and $235 million for the years ended December 31, 2017, 2016 and 2015, respectively, with any ineffective portion recognized in Other expenses during the period. No ineffectiveness or other amounts associated with net investment hedges were reclassified from AOCI into income for the years ended December 31, 2017, 2016 and 2015.

Derivatives Not Designated As Hedges

Credco has derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve 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 derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in a net gains of $21 million, $1 million and $14 million for the years ended December 31, 2017, 2016 and 2015, respectively, and are recognized in Other expenses.

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Fair Values

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Values

Note 7– Fair Values

Fair value is defined as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on Credco’s principal or, in the absence of a principal, most advantageous market for the specific asset or liability.

GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:

• Level 1 – Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access.
• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including:

- Quoted prices for similar assets or liabilities in active markets;

- Quoted prices for identical or similar assets or liabilities in markets that are not active;

- Inputs other than quoted prices that are observable for the asset or liability; and

- Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

• Level 3 – Inputs that are unobservable and reflect Credco’s own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Credco 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, 2017 and 2016, although the disclosed fair value of certain assets that are not carried at fair value, as presented later in this Note, are classified within Level 3.

Credco monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, Credco discloses the fair value measurement at the beginning of the reporting period during which the transfer occurred.For the years ended December 31, 2017 and 2016, there were no significant transfers between levels.

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy as Level 2 (as described in the preceding paragraphs), as of December 31:

(Millions)		2017		2016
Assets:
Derivatives (a)	$	63	$	301
Total assets		63		301
Liabilities:
Derivatives (a)		95		98
Total liabilities	$	95	$	98

Refer to Note 6 for the fair values of derivative assets and liabilities, on a further disaggregated basis.

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Fair Value

For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table), Credco applies the following valuation techniques:

Derivative Financial Instruments

The fair value of Credco’s derivative financial instruments is estimated internally by using third-party pricing models, where the inputs to those models are readily observable from actively quoted markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. Credco reaffirms its understanding of the valuation techniques at least annually and validates the valuation output on a quarterly basis. Credco’s derivative instruments are classified within Level 2 of the fair value hierarchy.

The fair value of Credco’s interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated.

The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated.

Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve, used to value derivatives are not indicative of the credit quality of Credco or its counterparties. Credco considers the counterparty credit risk by applying an observable forecasted default rate to the current exposure. Refer to Note 6 for additional fair value information.

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table summarizes the estimated fair value for Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of December 31, 2017 and 2016. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2017 and 2016, respectively, and require management judgment. These figures may not be indicative of future fair values norcan the fair value of Credco be estimated by aggregating the amounts presented.

				Carrying		Corresponding Fair Value Amount
2017 (Billions)				Value		Total		Level 1		Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values
		equal or approximate fair value(a)
			Cash and cash equivalents	$	0.2	$	0.2	$	0.2	$	―	$	―
			Other financial assets		20.6		20.6		0.1		20.5		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.6		0.6		―		―		0.6
			Loans to affiliates and other		14.5		14.4		―		10.0		4.4
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			8.6		8.6		―		8.6		―
	Financial liabilities carried at other than fair value
			Long-term debt		24.2		24.5		―		24.5		―
			Long-term debt with affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

				Carrying		Corresponding Fair Value Amount
2016 (Billions)				Value		Total		Level 1		Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values
		equal or approximate fair value(a)
			Cash and cash equivalents	$	1.2	$	1.2	$	0.2	$	1.0	$	―
			Other financial assets		19.3		19.3		―		19.3		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.5		0.5		―		―		0.5
			Loans to affiliates and other		10.7		10.7		―		7.9		2.8
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			9.1		9.1		―		9.1		―
	Financial liabilities carried at other than fair value
			Long-term debt		20.5		20.7		―		20.7		―
			Long-term debt with affiliates	$	―	$	―	$	―	$	―	$	―

Level 1 amounts reflect interest-bearing deposits and Level 2 amount primarily reflectstime deposits, short-term investmentsand Card Member receivables.

The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2017 and 2016, respectively, and require management judgment. These figures may not be indicative of future fair values. The fair value of Credco cannot be reliably estimated by aggregating the amounts presented.

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Other Than Fair Value

For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table), Credco applies the following valuation techniques to measure fair value:

Financial Assets For Which Carrying Values Equal Or Approximate Fair Value

Financial assets for which carrying values equal or approximate fair value include cash and cash equivalents, Card Member receivables, due from affiliates, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate.

Financial Assets Carried At Other Than Fair Value

Card Member loans

Card Member loans are recorded at historical cost, less reserves, on the Consolidated Balance Sheets. In estimating the fair value for Credco’s Card Member loans, Credco uses a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar loans and the lack of observable pricing inputs thereof, Credco uses various inputs derived from an equivalent securitization market to estimate fair value. Such inputs include projected income, pay-down rates, discount rates, relevant credit costs and cost of funding assumptions.

Loans to affiliates and other

Loans to affiliates and other are recorded at historical cost on the Consolidated Balance Sheets. In estimating the fair value for Credco’s loans to affiliates and other, Credco uses discounted cash flow models. For loans to affiliates collateralized by Card Member loans, Credco derives the value of the loans based on the fair value of the underlying collateral used to finance the loans using a discounted cash flow model with inputs as detailed above (Card Member loans), and as such is classified as Level 3. For the remaining loans to affiliates and other, the models use market observable interest rates and adjust those rates for necessary risks.

Financial Liabilities For Which Carrying Values Equal Or Approximate Fair Value

Financial liabilities for which carrying values equal or approximate fair value include short-term debt, short-term debt to affiliates, due to affiliates, accrued interest and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate.

Financial Liabilities Carried At Other Than Fair Value

Long-term debt

Long-term debt,includingwith affiliates,is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for the impact of fair value hedge accounting on certain fixed-rate notes and current translation rates for foreign-denominated debt. The fair value of Credco’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 of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly-traded debt markets of similar terms and comparable credit risk, Credco uses market interest rates and adjusts those rates for necessary risks, including its own credit risk. In determining an appropriate spread to reflect its credit standing, Credco considers credit default swap spreads, bond yields of other long-term debt offered by Credco, and interest rates currently offered to Credco for similar debt instruments of comparable maturities.

Nonrecurring Fair Value Measurements

Credco did not have any assets that were measured at fair value due to impairment on a nonrecurring basis during the years ended December 31, 2017 and 2016.

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Variable Interest Entity

12 Months Ended

Dec. 31, 2017

Variable Interest Entity [Abstract]

Variable Interest Entity

Note 8–Variable Interest Entity

Credco has established a VIE, American Express Canada Credit Corporation (AECCC), used primarily to lend funds to affiliates, through the issuance of notes in Canada under a medium-term note program. All notes issued under this program are fully guaranteed by Credco. Credco is considered the primary beneficiary of the entity and owns all of the outstanding voting interests and, therefore, consolidates the entity. Total assets as of December 31, 2017 and2016 were $0.5 billion and $1.7 billion respectively. As of December 31, 2017 and 2016, nil and $1.7 billion, respectively, of assets were eliminated in consolidation. Total liabilities as of December 31, 2017 and 2016 were $0.5 billion and $1.7 billion respectively. As of December 31, 2017 and 2016,niland $1.3 billion, respectively, of liabilities were eliminated in consolidation. The assets of the VIE are not used solely to settle the obligations of the VIE. The note holders of the VIE have recourse to Credco.

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Transactions With Affiliates

12 Months Ended

Dec. 31, 2017

Related Party Transactions [Abstract]

Transactions with Affiliates

Note 9– Transactions with Affiliates

As described below, Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis. However, there can be no assurance that the terms of these arrangements are the same as would be negotiated between independent parties.

In 2017, 2016 and 2015, Credco purchased Card Member receivables and loans without recourse from TRS and certain of its subsidiaries totaling approximately $262 billion, $225 billion and $227 billion, respectively. In 2017, 2016 and 2015, Credco sold Card Member receivables and participating interests to affiliates totaling $9.4 billion, $5.7 billion and $2.6 billion, respectively. The discount revenue on purchased Card Member receivables and loans totaled $760 million, $471 million and $479 million for the years ended December 31, 2017, 2016 and 2015, respectively. The receivables agreements require TRS and its subsidiaries to perform servicing, clerical and other services necessary to bill and collect all Card Member receivables and loans owned by Credco. Since settlements under the agreements occur monthly, an amount due from, or payable to, such affiliates may arise at the end of each month.

As of December 31, 2017 and 2016, CRC owned approximately $4.1 billion and $4.0 billion, respectively, of participation interests purchased from RFC VIII.

Transactions with affiliates as of or for the years ended December 31, were as follows:

(Millions, except percentages)		2017			2016			2015
Loans to affiliates and other	$	14,527		$	10,659		$	14,262
Average interest rate on loans to affiliates and other		2.19	%		1.78	%		1.81	%
Due from affiliates	$	189		$	997		$	615
Restricted cash with affiliates		100			―			―
Short-term debt to affiliates		5,997			4,559			5,439
Average interest rate on short-term debt to affiliates		1.04	%		0.49	%		0.19	%
Maximum month-end level of short-term borrowings during the year	$	8,377		$	5,091		$	5,439
Long term debt to affiliates		270			―			―
Average interest rate on long-term debt to affiliates		0.23	%		―			―
Maximum month-end level of long-term borrowings during the year	$	270		$	―		$	―
Due to affiliates		1,988			1,517			1,727
Maximum month-end level of loans to affiliates during the year		14,527			13,083			17,711
Interest income from affiliates and other		279			207			246
Interest expense to affiliates		58			24			10
Other, net expense	$	2		$	1		$	1

Credco’s loans to affiliates represent floating-rate interest-bearing intercompany borrowings by American Express Company, other wholly owned subsidiaries of TRS and the American Express joint ventures. Revenue earned from loans to affiliates and other is recorded as interest income from affiliates and other in the Consolidated Statements of Income. As of December 31, 2017 and 2016, no amount of loss reserves has been recorded and no loans are 30 days or more past due.

The components of loans to affiliates and other as of December 31 were as follows:

(Millions)		2017		2016
American Express Limited	$	3,847	$	―
American Express Services Europe Limited		2,747		2,484
Amex Bank of Canada		1,737		1,593
American Express Australia Limited		1,616		1,290
American Express International, Inc.		1,180		―
American Express Company		961		4,044
Amex Global Holdings C.V.		888		―
American Express Company (Mexico) S.A. de C.V.		812		765
American Express Bank (Mexico) S.A.		325		291
Alpha Card S.C.R.L./C.V.B.A.		138		―
American Express International, Inc- Branch - Singapore		124		107
American Express International (NZ), Inc.		80		85
Amex Funding Management (Europe) Limited		38		―
American Express Saudi Arabia (C) JSC		34		―
Total (a)	$	14,527	$	10,659

As of December 31, 2017 and 2016, approximately $ 5.0 billion and $3.3 billion, respectively, were collateralized by the underlying Card Member receivables and loans transferred with recourse.

Due from/to affiliates relate primarily to timing differences from the purchase of Card Member receivables, net of remittances from TRS, as well as from operating activities.As of December 31, 2017, due to affiliates primarily represents tax liability on account of the Tax Act. Refer to Note 11 to the Consolidated Financial Statements.

As of December 31, 2017 and 2016, the amount of interest-bearing restricted cash was $100 million and nil, respectively, which represents cash placed with Amex Bank of Canada relating to the newcollateralized loan arrangement for transfer of Card Member loans described aboveand has been included under “Other Assets” on the Consolidated Balance Sheets.

Components of short-term debt to affiliates as of December 31 were as follows:

(Millions)		2017		2016
AE Exposure Management Limited.	$	4,548	$	3,361
American Express Europe LLC		765		515
American Express Swiss Holdings GmbH		444		376
American Express Holdings Netherlands CV		192		192
Accertify Inc.		48		42
Amex Funding Management (Europe) Limited		―		73
Total	$	5,997	$	4,559

Short-term debt to affiliates consists primarily of master note agreementsrepayable on demand. Credco does not expect any changes to its short-term funding strategies with affiliates.

Long-term debt to affiliates represents an unsecured amount due to LB Luxembourg Two S.a.r.l amounting to $270 million and nil as of December 31, 2017and 2016, respectively, payable by December 2020.

Service Fees to Affiliates

Credco’s affiliates do not explicitly charge Credco a servicing fee for the servicing of receivables purchased. Instead Credco receives a lower discount rate on the receivables purchased than would be the case if servicing fees were charged. If a servicing fee had been charged by these affiliates from which Credco purchases receivables, fees to affiliates for servicing receivables would have been approximately $234 million, $253 million and $242 million for the years ended December 31, 2017, 2016and 2015, respectively. Correspondingly, discount revenue would have increased by approximately the same amounts in these periods.

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Changes in Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2017

Changes In Accumulated Other Comprehensive Income Disclosure [Abstract]

Changes In Accumulated Other Comprehensive Loss

Note 10–Changes in Accumulated Other Comprehensive Income

AOCI is a balance sheet item in the Shareholder’s Equity section of Credco’s Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in Foreign Currency Translation Adjustments for the three years ended December 31 were as follows:

		Foreign
		Currency
		Translation
(Millions), net of tax		Adjustments
Balances as of December 31, 2014	$	(787)
Net translation loss of investments in foreign operations		(604)
Net gains related to hedges of investment in foreign operations		235
Net change in accumulated other comprehensive loss		(369)
Balances as of December 31, 2015		(1,156)
Net translation loss of investments in foreign operations		(187)
Net gains related to hedges of investment in foreign operations		80
Net change in accumulated other comprehensive loss		(107)
Balances as of December 31, 2016		(1,263)
Net translation gain of investments in foreign operations(a)		439
Net losses related to hedges of investment in foreign operations		(174)
Net change in accumulated other comprehensive loss		265
Balances as of December 31, 2017	$	(998)

• Includes $289 million of recognized tax benefit (refer to Note 11).

The following table shows the tax impact for the three years ended December 31 for the changes in Foreign Currency Translation Adjustments presented above:

	Tax (benefit) expense
(Millions)		2017		2016		2015
Foreign currency translation adjustments (a)	$	(209)	$	49	$	―
Net investment hedges		(103)		48		140
Total tax impact	$	(312)	$	97	$	140

Include $289 million of tax benefit recognized in the year ended December 31, 2017 (refer to Note 11).

No amounts were reclassified out of AOCI into the Consolidated Statements of Income for the years ended December 31, 2017 and 2016.

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Income Taxes

12 Months Ended

Dec. 31, 2017

Income Taxes [Abstract]

Income Taxes

Note 11–Income Taxes

The Tax Act, enacted by the U.S. government on December 22, 2017,makes broad and complex changes to the U.S. tax code which will require time to interpret. The SEC issued Staff Accounting BulletinNo. 118 (SAB 118) in December, 2017, to provide guidance on accounting for the effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the Tax Act enactment date for companies to complete their assessment of and accounting for those effects of the Tax Act required under ASC 740 “Implementation Guidance on Accounting for Uncertainty in Income Taxes’’ to be reported in the period of enactment. Under SAB 118, a company must first reflect the income tax effects of the Tax Act for which the accounting is complete in the period of the date of enactment. To the extent the accounting for other income tax effects is incomplete, but for which a reasonable estimate can be determined, companies must record a provisional estimate to be included in their financial statements. For any income tax effect for which a reasonable estimate cannot be determined, an entity must continue to apply ASC 740 based on the provisions of the tax laws in effect immediately prior to the Tax Act being enacted until such time as a reasonable estimate can be determined.

Credco has recorded a discrete net charge of $858 million in the period ended December 31, 2017 related to the Tax Act. For the reasons stated below, Credco requires additional time to complete its analysis of the impacts of the Tax Act and therefore its accounting for the Tax Act is provisional.

• Impacts of the Deemed Repatriation: The Tax Act imposed a one-time transition tax on unrepatriated post-1986 accumulated earnings and profits (E&P) of certain of our foreign subsidiaries. To calculate this tax, Credco must determine the cumulative amount of E&P, as well as the amount of foreign taxes paid on such earnings. In addition, Credco made a decision to no longer assert that the accumulated post-1986 E&P of its non-U.S. subsidiaries that are subject to this one-time transition tax are intended to be permanently reinvested outside the United States. As a result Credco recorded a deferred tax liability for the state income and foreign withholding tax consequences of any future cash dividends paid from such E&P. Credco has recorded reasonable estimates based on data available for both the deemed repatriation tax for 2017 of $737 million, and the deferred state income and foreign withholding taxes on potential future distributions of these earnings of $105 million. Until Credco fully completes its analysis of both items, Credco’s accounting for these items is provisional.
• Remeasurement of Deferred Tax Assets and Liabilities: Credco has recorded a deferred tax charge of $16 million related to the remeasurement of its U.S. federal net deferred tax assets for 2017. This charge reflects the change in the corporate tax rate from 35 percent to 21 percent, effective January 1, 2018, as well as other provisions of the Tax Act. Certain components of the remeasurement are reasonable estimates based on available information. Until Credco fully completes its analysis of all components, Credco’s accounting for the remeasurement of its net deferred tax assets is provisional.

Credco will complete its analysis of and finalize its accounting for these provisional estimates during the one-year measurement period as prescribed by SAB 118.

The results of operations of Credco are included in the consolidated U.S. federal income tax return of American Express. Under an agreement with American Express, provision for income taxes is recognized on a separate company basis. If benefits for net operating losses, future tax deductions and foreign tax credits cannot be recognized on a separate company basis, such benefits are then recognized based upon a share, derived by formula, of those deductions and credits that are recognizable on an American Express consolidated reporting basis.

The components of income tax expense (benefit) for the years ended December 31 included in Credco’s Consolidated Statements of Income were as follows:

(Millions)				2017		2016		2015
Current income tax expense (benefit):
	U.S. federal (a)		$	785	$	(4)	$	15
	U.S. state and local			15		(6)		(4)
	Non-U.S.			24		11		20
		Total current income tax expense		824		1		31
Deferred income tax expense (benefit) :
	U.S. federal (b)			58		10		(5)
	U.S. state and local			1		1		―
	Non-U.S.			(5)		3		12
		Total deferred income tax expense		54		14		7
Total income tax expense			$	878	$	15	$	38

• 2017 includes a charge of $737 million related to the Tax Act deemed repatriation tax on certain non-U.S. earnings.
• 2017 includes charges related to the Tax Act of $16 million due to the remeasurement of certain federal net deferred tax assets to the lower federal tax rate of 21 percent and $105 million due to deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries.

A reconciliation of the U.S. federal statutory rate of 35 percent to Credco’s actual income tax rate for the years ended December 31 was as follows:

		2017		2016		2015
U.S. statutory federal income tax rate		35.0	%	35.0	%	35.0	%
(Decrease) increase in taxes resulting from:
	State and local income taxes, net of federal benefit	(0.3)		(0.5)		―
	Non-U.S. subsidiaries earnings(a)	(25.7)		(25.1)		(25.5)
	Tax Settlements(b)	(1.1)		(1.4)		(0.4)
	U.S. Tax Act(c)	311.6		―		―
	Other(d)	(0.2)		(0.9)		6.0
Actual tax rate		319.3	%	7.1	%	15.1	%

• Results for all years include recurring permanent tax benefits, in relation to the level of pretax income. Expenses in the United States are attracting a 35 percent statutory benefit whereas foreign earnings are taxed at lower rates and were indefinitely reinvestedprior to the impacts of the Tax Act in 2017 (refer footnote (c)). Credco’s effective tax rate reflects the favorable impact of the tax benefit related to its ongoing funding activities outside of the United States.
• Relates to the resolution of tax matters in various jurisdictions.
• Relates to the $858 million charge for the impacts of the Tax Act.
• Results for 2016 and 2015 include the impact of prior year tax returns filed in the current year.

The results for the year ended December 31, 2015 reflect out-of-period corrections that increased tax expense by $11 million and the effective tax rate by approximately 4.4 percent. The corrections relate to tax calculations of foreign exchange gains/losses in one jurisdiction reflected in the 2014 results. None of the current or prior period financial statements were materially misstated from these corrections.

Credco records a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. In particular, the 2017 balances were reduced to reflect the remeasurement of certain federal net deferred tax assets due to the enacted lower federal tax rate of 21 percent.

The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table:

(Millions)				2017		2016
Deferred tax assets:
	Reserves not yet deducted for tax purposes		$	26	$	23
	State income taxes			5		9
	Foreign exchange loss			7		―
	Other			―		1
		Gross deferred tax assets		38		33
Deferred tax liabilities:
	Investment in foreign subsidiaries(a)			105		―
	Foreign exchange gain			―		8
		Gross deferred tax liabilities		105		8
Net deferred tax assets			$	(67)	$	25

Deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries.

Credco is subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which American Express operates. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, Credco must make judgments in assessing the likelihood that a tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. Credco adjusts the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome.

American Express is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which American Express has significant business operations. The tax years under examination and open for examination vary by jurisdiction. In February 2017, American Express received notification that all matters outstanding with the IRS for the tax years 1997-2007 were resolved. The resolution of such matters did not impact Credco’s effective tax rate. American Express is currently under examination with the IRS for the tax years 2008 through 2014.

The following table presents changes in unrecognized tax benefits:

(Millions)				2017		2016		2015
Balance, January 1			$	308	$	211	$	364
	Increases:
		Current year tax positions		8		79		2
		Tax positions related to prior years		―		24		1
	Decreases:
		Tax positions related to prior years (a)		(289)		(1)		(152)
		Settlements with tax authorities		―		(1)		―
		Lapse of statute of limitations		(3)		(4)		(4)
Balance, December 31			$	24	$	308	$	211

Decrease due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in shareholders’ equity, specifically within AOCI.

Included in the unrecognized tax benefits of $24 million, $308 million and $211 million for December 31, 2017, 2016 and 2015, respectively, are approximately $19 million, $12 million and $14 million, respectively that if recognized, would favorably affect the effective tax rate in a future period.

Credco believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $3 million principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $3 million of unrecognized tax benefits, approximately $2 million relates to amounts that, if recognized, would impact the effective tax rate in a future period.

Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. For the years ended December 31, 2017, 2016 and 2015, Credco recognized tax benefits of approximately $1 million, $2 million and $1 million, respectively, for interest and penalties. Credco had approximately $5 million and $48 million accrued for the payment of interest and penalties as of December 31, 2017 and 2016, respectively. The reduction in accrued interest in 2017 includes approximately $42 million related to the resolution of an uncertain tax position with the IRS in January 2017, which had no net impact on the income tax provision.

Current taxes due to American Express or affiliates as of December 31, 2017 and 2016 were $786 million and $17 million, respectively. The amount due to American Express for 2017 includes a $729 million payable related to the deemed repatriation tax.

		Payments due by year
(Millions)		2018		2019 - 2020		2021 - 2022		2023 and thereafter		Total
Deemed repatriation tax(a)	$	-	$	122	$	116	$	491	$	729

(a) Represents Credco’s estimated obligation under the Tax Act to pay the deemed repatriation tax to American Express on certain non-U.S. earnings over eight years, which has been calculated on a provisional basis. This amount does not reflect other related non-cash accruals.

Net income taxes refunded to Credco during 2017 were approximately $308 million and net income taxes paid by Credco during 2016 were approximately $45 million.

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Significant Credit Concentrations

12 Months Ended

Dec. 31, 2017

Concentration Risk Disclosure [Abstract]

Significant Credit Concentrations

Note 12–Significant Credit Concentrations

Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to Credco’s total credit exposure. Credco’s primary credit exposure, Card Member receivables and loans and loans to affiliates and other, is diversified among its affiliated companies with Card Members that operate in diverse industries, economic sectors and geographic regions.

The following table details Credco’s maximum credit exposure of the on-balance sheet assets by category, as of December 31:

(Billions)			2017		2016
On-balance sheet:
	Loans to affiliates and other	$	15	$	11
	Institutions(a)		13		11
	Individuals(b)		7		7
	Financial Services(c)		1		2
	Due from affiliates		-		1
Total on-balance sheet		$	36	$	32

• Primarily reflects Card Member receivables from other corporate institutions, which are governed by institutional credit risk management.
• Primarily reflects Card Member receivables and loans, which are governed by individual credit risk management.
• Represents banks, broker-dealers, insurance companies and savings and loan associations.

As of December 31, 2017 and 2016, Credco’s most significant concentration of credit risk was with Loans to affiliates and Corporate institutions, including Card Member receivables. Credco purchased Card Member receivables and loans from TRS and certain of its subsidiaries. TRS generally advances these amounts on an unsecured basis. However, TRS reviews each potential customer’s credit application and evaluates the applicant’s financial history and ability and willingness to repay. TRS also considers, on behalf of Credco, credit performance by customer tenure, industry and geographic location in managing credit exposure.

The following table details Credco’s Card Member receivables and loans exposure in the United States and outside the United States as of December 31:

(Billions)		2017		2016
United States	$	15	$	14
Outside the United States		6		5
Total	$	21	$	19

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Geographic Regions

12 Months Ended

Dec. 31, 2017

Geographic Regions Disclosure [Abstract]

Geographic Regions

Note 13–Geographic Regions

Credco is principally engaged in the business of financing the Card Member receivables and loans of its affiliates. Management makes operating decisions and assesses performance based on an ongoing review of these financing activities, which constitute Credco’s only operating segment for financial reporting purposes.

The following table presents Credco’s revenues and pretax income in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment:

(Millions)			2017		2016		2015
Revenues
	United States	$	779	$	440	$	442
	Outside the United States		308		278		313
Consolidated		$	1,087	$	718	$	755
Pretax income
	United States	$	9	$	16	$	111
	Outside the United States		266		196		141
Consolidated		$	275	$	212	$	252

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Quarterly Financial Data

12 Months Ended

Dec. 31, 2017

Quarterly Financial Data [Abstract]

Quarterly Financial Data

Note 14–Quarterly Financial Data (Unaudited)

Quarterly financial information for the years ended December 31, 2017 and 2016 are summarized as follows:

(Millions)	2017								2016
Quarters ended		12/31		9/30		6/30		3/31		12/31		9/30		6/30		3/31
Revenues	$	296	$	286	$	253	$	252	$	179	$	180	$	179	$	180
Pretax income		72		85		52		66		20		70		65		57
Net (loss) income (a)	$	(791)	$	72	$	57	$	59	$	29	$	60	$	57	$	51

The fourth quarter of 2017 includes impact of the Tax Act (refer to Note 11).

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Summary Of Significant Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The Consolidated Financial Statements of Credco are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated.

Credco consolidates entities in which it holds a controlling financial interest. For voting interest entities, Credco is considered to hold a controlling financial interest when it is able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, Credco is considered to hold a controlling financial interest when it is determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE.

Foreign Currency

Foreign Currency

Monetary assets and liabilitiesdenominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of the reporting period; non-monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction;revenues and expenses are translated at the average month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholder’s equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency are reported net in Other expenses, inCredco’s Consolidated Statements of Income.

Amounts Based on Estimates and Assumptions

Amounts Based on Estimates and Assumptions

Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member losses on receivables and loans, fair value measurements and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ.

Revenues and Expenses

Discount Revenue Earned from Purchased Card Member Receivables and Loans

Credco earns discount revenue from purchasing Card Member receivables and loans at a discount to par value. The discount is deferred and recognized as revenue over the period that the receivables and loans are estimated to be outstanding or funded. Estimates are based on the historical average life of Card Member receivables and loans.

Interest Income from Affiliates

Interest income from affiliates is earned on interest-bearing loans made by Credco to affiliates. Interest income is accrued primarily using the average daily balance method on loans and is recognized based on the outstanding loan principal amount and interest rates specified in the agreements until the outstanding loan balance is paid.

Finance Revenue

Finance revenue is assessed using the average daily balance method for Card Member loans and is recognized based upon the loan principal amount outstanding in accordance with the terms of the applicable account agreement until the outstanding balance is paid or written off.

Interest Expense

Interest expense includes interest incurred primarily to fund Card Member receivables and loans, general corporate purposes and liquidity needs, and is recognized as incurred.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, and other highly liquid investments with original maturities of 90 days or less.

Accounts Receivable And Loans and Reserves For Cardmember Losses [Abstract]

Card Member receivables and loans

Card Member Receivables

Card Member receivables represent amounts due on American Express charge card products. For American Express, the Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant. Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are established to limit the maximum exposure for American Express. Charge Card Members generally must pay the full amount billed each month.

Credco records these Card Member receivables at the time they are purchased from TRS and certain of its subsidiaries that issue the card (card issuers).Card Member receivable balances are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 3).

Card Member Loans

Card Member loans represent revolving amounts due on American Express cards. For American Express lending card products, these Card Member loans are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and elect to revolve a portion of the outstanding balance by entering into a revolving payment arrangement with American Express. These loans have a range of terms such as credit 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 payments based on pre-established amounts and the amounts that Card Members choose to revolve are subject to finance charges.

Credco records these Card Member loans at the time they are purchased from TRS and certain of its subsidiaries that issue the card (card issuers). Card Member loans are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 3), and include principaland any related accrued interest and fees. American Express’ policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that will not be collected.

Reserves For Losses Policy [Abstract]

Reserves for losses

Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantitative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitativereserves for certain external and internal qualitative factors, which may increase or decrease the reserves for losses on Card Member receivables and loans. These external factors include employment, spend, sentiment, housing and credit, and changes in the legal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member receivables or loans and net write-off coverage ratios.

Card Member receivables and loans balances are written off when management considers amounts to be uncollectible, whichis generally determined by the number of days past due and is typically no later than 180 days past due.Card Member receivables andloans in bankruptcy or owed by deceased individuals are generally written off upon notification, and recoveries are recognized as they are collected.

Derivatives And Hedging Activities Policy [Abstract]

Derivatives Financial Instruments and Hedging Activities

Credco’s derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below.

Credco formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, Credco will discontinue the application of hedge accounting.

To the extent the fair value hedge is effective, the gain or loss on the hedging instrument offsets the loss or gain on the hedged item attributable to the hedged risk. Any difference between the changes in the fair value of the derivative and the changes in the hedged item is referred to as hedge ineffectiveness and is reported as a component of Other expenses.

Credco primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations.

Credco has derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve 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 derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures.

Fair Values [Abstract]

Fair Value Measurements

Credco monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, Credco discloses the fair value measurement at the beginning of the reporting period during which the transfer occurred.

Income Tax Policy [Abstract]

Income taxes

The Tax Act, enacted by the U.S. government on December 22, 2017,makes broad and complex changes to the U.S. tax code which will require time to interpret. The SEC issued Staff Accounting BulletinNo. 118 (SAB 118) in December, 2017, to provide guidance on accounting for the effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the Tax Act enactment date for companies to complete their assessment of and accounting for those effects of the Tax Act required under ASC 740 “Implementation Guidance on Accounting for Uncertainty in Income Taxes’’ to be reported in the period of enactment. Under SAB 118, a company must first reflect the income tax effects of the Tax Act for which the accounting is complete in the period of the date of enactment. To the extent the accounting for other income tax effects is incomplete, but for which a reasonable estimate can be determined, companies must record a provisional estimate to be included in their financial statements. For any income tax effect for which a reasonable estimate cannot be determined, an entity must continue to apply ASC 740 based on the provisions of the tax laws in effect immediately prior to the Tax Act being enacted until such time as a reasonable estimate can be determined.

Credco records a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. In particular, the 2017 balances were reduced to reflect the remeasurement of certain federal net deferred tax assets due to the enacted lower federal tax rate of 21 percent.

Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision.

Income tax uncertainties

The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. Credco adjusts the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome.

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Card Member Receivables and Loans (Tables)

12 Months Ended

Dec. 31, 2017

Accounts Receivable And Loans Tables [Abstract]

Card Member receivables detail

Card Member receivables as of December 31, 2017 and 2016 consisted of:

(Millions)		2017		2016
U.S. Consumer Services	$	3,557	$	3,518
International Consumer and Network Services (a)		1,827		1,526
Global Commercial Services (b)		14,892		13,174
Card Member receivables (c)		20,276		18,218
Less: Reserve for losses		145		110
Card Member receivables, net (d)	$	20,131	$	18,108

• Comprised of International consumer card business.
• Comprised of Corporate and Small Business Services.
• Net of deferred discount revenue totaling $43 million and $27 million as of December 31, 2017 and 2016, respectively.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member loans detail

Card Member loans as of December 31, 2017 and 2016 consisted of:

(Millions)		2017		2016
International Consumer and Network Services (a)	$	561	$	476
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	556	$	471

• Comprised of International consumer card business.
• Card Member loans modified in a TDR program were immaterial.

Aging of Card Member receivables and loans

The following table presents the aging of Card Member receivables and Card Member loans as of December 31, 2017 and 2016:

					30-59		60-89
					Days		Days		90+ Days
2017(Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer Services	$	3,531	$	10	$	6	$	10	$	3,557
	International Consumer and Network Services		1,805		8		5		9		1,827
	Global Commercial Services
	Global Small Business Services		1,397		5		4		6		1,412
	Global Corporate Payments (a)		(b)		(b)		(b)		112		13,480
Card Member Loans:
	International Consumer and Network Services	$	557	$	1	$	1	$	2	$	561
					30-59		60-89
					Days		Days		90+ Days
2016(Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer Services	$	3,501	$	9	$	3	$	5	$	3,518
	International Consumer and Network Services		1,506		6		4		10		1,526
	Global Commercial Services
	Global Small Business Services		1,202		9		2		5		1,218
	Global Corporate Payments (a)		(b)		(b)		(b)		108		11,956
Card Member Loans:
	International Consumer and Network Services	$	472	$	1	$	1	$	2	$	476

• For Global Corporate Payments Card Member receivables in Global Commercial Services, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if collection procedures are initiated on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).
• Delinquency data for periods other than 90 days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

Credit quality indicators for receivables and loans

The following tables present the key credit quality indicators as of or for the years ended December 31:

		2017				2016
				30+ Days				30+ Days
		Net		Past Due		Net		Past Due
		Write-off		as a % of		Write-off		as a % of
		Rate	(a)	Total		Rate	(a)	Total
Card Member Receivables:
	U.S. Consumer Services	0.83	%	0.73	%	0.54	%	0.48	%
	International Consumer and Network Services	1.50	%	1.20	%	1.86	%	1.31	%
	Global Small Business Services	1.11	%	1.06	%	1.03	%	1.31	%
Card Member Loans:
	International Consumer and Network Services	1.24	%	0.71	%	1.15	%	0.84	%
		2017				2016
		Net Loss		90+ Days		Net Loss		90+ Days
		Ratio as a		Past		Ratio as a		Past
		% of		Billing		% of		Billing
		Charge		as a % of		Charge		as a % of
		Volume	(b)	Receivables		Volume	(b)	Receivables
Card Member Receivables:
	Global Corporate Payments	0.08	%	0.83	%	0.06	%	0.90	%

• Represents the amount of Card Member receivables or Card Member loans owned by Credco that are written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods indicated.
• Represents the amount of Card Member receivables owned by Credco that are written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated.

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Reserves for Losses (Tables)

12 Months Ended

Dec. 31, 2017

Reserves For Losses Tables [Abstract]

Changes in the Card Member receivable reserve for losses

The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31:

(Millions)		2017		2016			2015
Balance, January 1		$	110	$	114	$	94
	Provisions		238		145		160
	Other credits(a)		58		20		32
	Net write-offs(b)		(198)		(146)		(157)
	Other debits(c)(d)		(63)		(23)		(15)
Balance, December 31		$	145	$	110	$	114

• Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $9.4 billion, $5.4 billion and $5.8 billion for the years ended December 31, 2017, 2016 and 2015, respectively.
• Net of recoveries of $95 million, $91 million and $100 million for the years ended December 31, 2017, 2016 and 2015, respectively.
• Primarily reserve balances related to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold totaled $9.4 billion, $5.7 billion and $2.6 billion for the years ended December 31, 2017, 2016 and 2015, respectively.
• 2015 includes the impact of the transfer of reserves relating to the HFS portfolio, which was not significant.

Changes in the 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)		2017		2016		2015
Balance, January 1		$	5	$	4	$	3
	Provisions		6		6		5
	Net write-offs(a)		(6)		(5)		(4)
Balance, December 31		$	5	$	5	$	4

Net of recoveries of $1 million foreach of the years ended December 31, 2017, 2016 and 2015.

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Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Tables [Abstract]

Short-term debt

Credco’s short-term debt outstanding(excluding short-term debt to affiliates), defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows:

		2017				2016
		Outstanding	Year-End Stated			Outstanding	Year-End Stated
(Millions, except percentages)		Balance	Rate on Debt(a)			Balance	Rate on Debt(a)
Commercial paper(b)	$	1,168	1.54	%	$	2,993	1.13	%
Other short-term borrowings(c)		140	1.27			―	―
Total	$	1,308	1.51	%	$	2,993	1.13	%

• For floating-rate issuances, the stated interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2017and 2016.
• Average commercial paper outstanding was $1,076 million and $491 million in 2017 and 2016, respectively.
• Represents interest-bearing overdrafts with banks.

Long-term debt

Credco’s long-term debt outstanding, defined as debt with original contractual maturitydates of one year or greater, as of December 31 was as follows:

					2017							2016
									Year-End							Year-End
			Original				Year-End		Effective					Year-End		Effective
			Contractual				Stated		Interest					Stated		Interest
(Millions, except			Maturity		Outstanding		Rate		Rate with			Outstanding		Rate		Rate with
percentages)			Dates		Balance	(a)	on Debt	(b)	Swaps	(b)(c)		Balance	(a)	on Debt	(b)	Swaps	(b)(c)
Fixed Rate
	Senior Notes		2018-2027	$	19,652		2.24	%	2.27	%	$	16,201		1.98	%	1.44	%
Floating Rate
	Senior Notes		2018-2022		4,550		2.09		―			4,350		1.52		―
Unamortized
	Underwriting
		Fees			(49)							(39)
Total Long-Term
	Debt			$	24,153		2.21	%			$	20,512		1.88	%

• 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 6 for more details on Credco’s treatment of fair value hedges.
• For floating-rate issuances, the stated and effective interest rates are weighted based on outstanding balances and rates in effect as of December 31, 2017 and 2016.
• Effective interest rates are only presented when swaps are in place to hedge the underlying debt.

Aggregate annual maturities on long-term debt obligations

Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2017 were as follows:

(Millions)
2018		$	3,654
2019			7,150
2020			6,600
2021			2,939
2022			2,050
Thereafter			2,000
	Total		24,393
Unamortized Underwriting Fees			(49)
Unamortized Discount and Premium			(36)
Impacts due to Fair Value Hedge Accounting			(155)
Total Long-Term Debt		$	24,153

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Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2017

Derivatives And Hedging Activities Tables [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31:

		Other Assets				Other Liabilities
		Fair Value				Fair Value
(Millions)		2017		2016		2017		2016
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)		$	―	$	22	$	―	$	69
Net investment hedges - Foreign exchange contracts			54		151		38		1
Total derivatives designated as hedging instruments			54		173		38		70
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		9		128		57		28
Total derivatives, gross			63		301		95		98
Less: Cash collateral netting (b)(c)			―		(2)		―		(49)
Derivative asset and derivative liability netting (d)			(26)		(27)		(26)		(27)
Total derivatives, net		$	37	$	272	$	69	$	22

• Effective January 2017, the Central Clearing Party (CCP) changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as opposed to collateral. As of December 31, 2017, there was no unsettled derivative asset or liability with the CCP.
• Represents the offsetting of the fair value of bilateral interest rate contractswith the right to reclaim cash collateral or the obligation to return cash collateral.
• Credco held no non-cash collateral as ofDecember 31,2017 and 2016, respectively. To mitigate counterparty credit risk related to derivatives, Credco may accept non-cash collateral from its derivatives counterparties. Additionally, Credco posted $115 million and $144 million as of December 31, 2017 and 2016, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other assets on Credco’s Consolidated Balance Sheets and are not netted against the derivative balances.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

Effect of fair value hedges on results of operations

The following table summarizes the gains (losses) recognized in Other expenses associated with Credco’s fair value hedges for the years ended December 31:

(Millions)		2017		2016		2015
Interest rate derivative contracts	$	(129)	$	(102)	$	(31)
Hedged items		100		91		44
Net hedge ineffectiveness (losses) gains	$	(29)	$	(11)	$	13

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Fair Values (Tables)

12 Months Ended

Dec. 31, 2017

Fair Values (Tables) [Abstract]

Fair value assets and liabilities measured on recurring basis

The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy as Level 2 (as described in the preceding paragraphs), as of December 31:

(Millions)		2017		2016
Assets:
Derivatives (a)	$	63	$	301
Total assets		63		301
Liabilities:
Derivatives (a)		95		98
Total liabilities	$	95	$	98

Refer to Note 6 for the fair values of derivative assets and liabilities, on a further disaggregated basis.

Estimated fair value of financial assets and financial liabilities

The following table summarizes the estimated fair value for Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of December 31, 2017 and 2016.

				Carrying		Corresponding Fair Value Amount
2017 (Billions)				Value		Total		Level 1		Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values
		equal or approximate fair value(a)
			Cash and cash equivalents	$	0.2	$	0.2	$	0.2	$	―	$	―
			Other financial assets		20.6		20.6		0.1		20.5		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.6		0.6		―		―		0.6
			Loans to affiliates and other		14.5		14.4		―		10.0		4.4
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			8.6		8.6		―		8.6		―
	Financial liabilities carried at other than fair value
			Long-term debt		24.2		24.5		―		24.5		―
			Long-term debt with affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

				Carrying		Corresponding Fair Value Amount
2016 (Billions)				Value		Total		Level 1		Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values
		equal or approximate fair value(a)
			Cash and cash equivalents	$	1.2	$	1.2	$	0.2	$	1.0	$	―
			Other financial assets		19.3		19.3		―		19.3		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.5		0.5		―		―		0.5
			Loans to affiliates and other		10.7		10.7		―		7.9		2.8
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			9.1		9.1		―		9.1		―
	Financial liabilities carried at other than fair value
			Long-term debt		20.5		20.7		―		20.7		―
			Long-term debt with affiliates	$	―	$	―	$	―	$	―	$	―

Level 1 amounts reflect interest-bearing deposits and Level 2 amount primarily reflectstime deposits, short-term investmentsand Card Member receivables.

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Transactions With Affiliates (Tables)

12 Months Ended

Dec. 31, 2017

Related Party (Tables) [Abstract]

Certain transactions with affiliates

Transactions with affiliates as of or for the years ended December 31, were as follows:

(Millions, except percentages)		2017			2016			2015
Loans to affiliates and other	$	14,527		$	10,659		$	14,262
Average interest rate on loans to affiliates and other		2.19	%		1.78	%		1.81	%
Due from affiliates	$	189		$	997		$	615
Restricted cash with affiliates		100			―			―
Short-term debt to affiliates		5,997			4,559			5,439
Average interest rate on short-term debt to affiliates		1.04	%		0.49	%		0.19	%
Maximum month-end level of short-term borrowings during the year	$	8,377		$	5,091		$	5,439
Long term debt to affiliates		270			―			―
Average interest rate on long-term debt to affiliates		0.23	%		―			―
Maximum month-end level of long-term borrowings during the year	$	270		$	―		$	―
Due to affiliates		1,988			1,517			1,727
Maximum month-end level of loans to affiliates during the year		14,527			13,083			17,711
Interest income from affiliates and other		279			207			246
Interest expense to affiliates		58			24			10
Other, net expense	$	2		$	1		$	1

Components of loans to affiliates

The components of loans to affiliates and other as of December 31 were as follows:

(Millions)		2017		2016
American Express Limited	$	3,847	$	―
American Express Services Europe Limited		2,747		2,484
Amex Bank of Canada		1,737		1,593
American Express Australia Limited		1,616		1,290
American Express International, Inc.		1,180		―
American Express Company		961		4,044
Amex Global Holdings C.V.		888		―
American Express Company (Mexico) S.A. de C.V.		812		765
American Express Bank (Mexico) S.A.		325		291
Alpha Card S.C.R.L./C.V.B.A.		138		―
American Express International, Inc- Branch - Singapore		124		107
American Express International (NZ), Inc.		80		85
Amex Funding Management (Europe) Limited		38		―
American Express Saudi Arabia (C) JSC		34		―
Total (a)	$	14,527	$	10,659

As of December 31, 2017 and 2016, approximately $ 5.0 billion and $3.3 billion, respectively, were collateralized by the underlying Card Member receivables and loans transferred with recourse.

Components of short-term debt to affiliates

Components of short-term debt to affiliates as of December 31 were as follows:

(Millions)		2017		2016
AE Exposure Management Limited.	$	4,548	$	3,361
American Express Europe LLC		765		515
American Express Swiss Holdings GmbH		444		376
American Express Holdings Netherlands CV		192		192
Accertify Inc.		48		42
Amex Funding Management (Europe) Limited		―		73
Total	$	5,997	$	4,559

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Changes in Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2017

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Components of comprehensive income (loss), net of tax

Changes in Foreign Currency Translation Adjustments for the three years ended December 31 were as follows:

		Foreign
		Currency
		Translation
(Millions), net of tax		Adjustments
Balances as of December 31, 2014	$	(787)
Net translation loss of investments in foreign operations		(604)
Net gains related to hedges of investment in foreign operations		235
Net change in accumulated other comprehensive loss		(369)
Balances as of December 31, 2015		(1,156)
Net translation loss of investments in foreign operations		(187)
Net gains related to hedges of investment in foreign operations		80
Net change in accumulated other comprehensive loss		(107)
Balances as of December 31, 2016		(1,263)
Net translation gain of investments in foreign operations(a)		439
Net losses related to hedges of investment in foreign operations		(174)
Net change in accumulated other comprehensive loss		265
Balances as of December 31, 2017	$	(998)

Includes $289 million of recognized tax benefit (refer to Note 11).

Accumulated Other Comprehensive Loss Income - Tax Effect

The following table shows the tax impact for the three years ended December 31 for the changes in Foreign Currency Translation Adjustments presented above:

	Tax (benefit) expense
(Millions)		2017		2016		2015
Foreign currency translation adjustments (a)	$	(209)	$	49	$	―
Net investment hedges		(103)		48		140
Total tax impact	$	(312)	$	97	$	140

Include $289 million of tax benefit recognized in the year ended December 31, 2017 (refer to Note 11).

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes (Tables) [Abstract]

Components of income tax expense

The components of income tax expense (benefit) for the years ended December 31 included in Credco’s Consolidated Statements of Income were as follows:

(Millions)				2017		2016		2015
Current income tax expense (benefit):
	U.S. federal (a)		$	785	$	(4)	$	15
	U.S. state and local			15		(6)		(4)
	Non-U.S.			24		11		20
		Total current income tax expense		824		1		31
Deferred income tax expense (benefit) :
	U.S. federal (b)			58		10		(5)
	U.S. state and local			1		1		―
	Non-U.S.			(5)		3		12
		Total deferred income tax expense		54		14		7
Total income tax expense			$	878	$	15	$	38

• 2017 includes a charge of $737 million related to the Tax Act deemed repatriation tax on certain non-U.S. earnings.
• 2017 includes charges related to the Tax Act of $16 million due to the remeasurement of certain federal net deferred tax assets to the lower federal tax rate of 21 percent and $105 million due to deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries.

Effective income tax rate

A reconciliation of the U.S. federal statutory rate of 35 percent to Credco’s actual income tax rate for the years ended December 31 was as follows:

		2017		2016		2015
U.S. statutory federal income tax rate		35.0	%	35.0	%	35.0	%
(Decrease) increase in taxes resulting from:
	State and local income taxes, net of federal benefit	(0.3)		(0.5)		―
	Non-U.S. subsidiaries earnings(a)	(25.7)		(25.1)		(25.5)
	Tax Settlements(b)	(1.1)		(1.4)		(0.4)
	U.S. Tax Act(c)	311.6		―		―
	Other(d)	(0.2)		(0.9)		6.0
Actual tax rate		319.3	%	7.1	%	15.1	%

• Results for all years include recurring permanent tax benefits, in relation to the level of pretax income. Expenses in the United States are attracting a 35 percent statutory benefit whereas foreign earnings are taxed at lower rates and were indefinitely reinvestedprior to the impacts of the Tax Act in 2017 (refer footnote (c)). Credco’s effective tax rate reflects the favorable impact of the tax benefit related to its ongoing funding activities outside of the United States.
• Relates to the resolution of tax matters in various jurisdictions.
• Relates to the $858 million charge for the impacts of the Tax Act.
• Results for 2016 and 2015 include the impact of prior year tax returns filed in the current year.

Components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table:

(Millions)				2017		2016
Deferred tax assets:
	Reserves not yet deducted for tax purposes		$	26	$	23
	State income taxes			5		9
	Foreign exchange loss			7		―
	Other			―		1
		Gross deferred tax assets		38		33
Deferred tax liabilities:
	Investment in foreign subsidiaries(a)			105		―
	Foreign exchange gain			―		8
		Gross deferred tax liabilities		105		8
Net deferred tax assets			$	(67)	$	25

Deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries.

Changes in unrecognized tax benefits

The following table presents changes in unrecognized tax benefits:

(Millions)				2017		2016		2015
Balance, January 1			$	308	$	211	$	364
	Increases:
		Current year tax positions		8		79		2
		Tax positions related to prior years		―		24		1
	Decreases:
		Tax positions related to prior years (a)		(289)		(1)		(152)
		Settlements with tax authorities		―		(1)		―
		Lapse of statute of limitations		(3)		(4)		(4)
Balance, December 31			$	24	$	308	$	211

Decrease due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in shareholders’ equity, specifically within AOCI.

Deemed repatriation tax payments due by year

		Payments due by year
(Millions)		2018		2019 - 2020		2021 - 2022		2023 and thereafter		Total
Deemed repatriation tax(a)	$	-	$	122	$	116	$	491	$	729

(a) Represents Credco’s estimated obligation under the Tax Act to pay the deemed repatriation tax to American Express on certain non-U.S. earnings over eight years, which has been calculated on a provisional basis. This amount does not reflect other related non-cash accruals.

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Significant Credit Concentrations (Tables)

12 Months Ended

Dec. 31, 2017

Significant Credit Concentrations (Tables) [Abstract]

Maximum Credit Exposure by Category

The following table details Credco’s maximum credit exposure of the on-balance sheet assets by category, as of December 31:

(Billions)			2017		2016
On-balance sheet:
	Loans to affiliates and other	$	15	$	11
	Institutions(a)		13		11
	Individuals(b)		7		7
	Financial Services(c)		1		2
	Due from affiliates		-		1
Total on-balance sheet		$	36	$	32

• Primarily reflects Card Member receivables from other corporate institutions, which are governed by institutional credit risk management.
• Primarily reflects Card Member receivables and loans, which are governed by individual credit risk management.
• Represents banks, broker-dealers, insurance companies and savings and loan associations.

Card Member receivables and loans exposure

The following table details Credco’s Card Member receivables and loans exposure in the United States and outside the United States as of December 31:

(Billions)		2017		2016
United States	$	15	$	14
Outside the United States		6		5
Total	$	21	$	19

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Geographic Regions (Tables)

12 Months Ended

Dec. 31, 2017

Geographic Operations Tables [Abstract]

Revenue and pretax income in different geographic regions

The following table presents Credco’s revenues and pretax income in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment:

(Millions)			2017		2016		2015
Revenues
	United States	$	779	$	440	$	442
	Outside the United States		308		278		313
Consolidated		$	1,087	$	718	$	755
Pretax income
	United States	$	9	$	16	$	111
	Outside the United States		266		196		141
Consolidated		$	275	$	212	$	252

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Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2017

Quartertly Financial Data [Abstract]

Quarterly financial data

Quarterly financial information for the years ended December 31, 2017 and 2016 are summarized as follows:

(Millions)	2017								2016
Quarters ended		12/31		9/30		6/30		3/31		12/31		9/30		6/30		3/31
Revenues	$	296	$	286	$	253	$	252	$	179	$	180	$	179	$	180
Pretax income		72		85		52		66		20		70		65		57
Net (loss) income (a)	$	(791)	$	72	$	57	$	59	$	29	$	60	$	57	$	51

The fourth quarter of 2017 includes impact of the Tax Act (refer to Note 11).

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Summary of Significant Accounting Policies ( Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary Of Significant Accounting Policies Textuals [Abstract]
Ratio of combined earnings and fixed earnings to fixed charges required to maintain availability of credit line	1.25
Net foreign currency transaction gains	$ 21	$ 1	$ 14

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Card Member Receivables and Loans (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounts Receivable [Abstract]
Card Member receivables	$ 20,276	$ 18,218
Less: Reserve for losses	145	110	$ 114	$ 94
Card Member receivables, net	20,131	18,108
U.S. Consumer Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	3,557	3,518
Global Commercial Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	14,892	13,174
International Consumer and Network Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	$ 1,827	$ 1,526

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Card Member Receivables and Loans (Details 1) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Card Member loans
Less: Reserve for losses	$ 5	$ 5	$ 4	$ 3
Card Member loans, less reserves	556	471
International Consumer and Network Services [Member]
Card Member loans
Card Member loans	561	476
Less: Reserve for losses	5	5
Card Member loans, less reserves	$ 556	$ 471

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Card Member Receivables and Loans (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	$ 20,276	$ 18,218
U.S. Consumer Services [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	3,557	3,518
U.S. Consumer Services [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	3,531	3,501
U.S. Consumer Services [Member] | Card Member Receivables [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	10	9
U.S. Consumer Services [Member] | Card Member Receivables [Member] | 60 To 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	6	3
U.S. Consumer Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	10	5
International Consumer and Network Services [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	1,827	1,526
Card Member loans total aging	561	476
International Consumer and Network Services [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	1,805	1,506
International Consumer and Network Services [Member] | Card Member Receivables [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	8	6
International Consumer and Network Services [Member] | Card Member Receivables [Member] | 60 To 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	5	4
International Consumer and Network Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	9	10
International Consumer and Network Services [Member] | Card Member Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	557	472
International Consumer and Network Services [Member] | Card Member Loans [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	1	1
International Consumer and Network Services [Member] | Card Member Loans [Member] | 60 To 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	1	1
International Consumer and Network Services [Member] | Card Member Loans [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	2	2
Global Commercial Services [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	14,892	13,174
Global Corporate Payments [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	13,480	11,956
Global Corporate Payments [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	112	108
Global Small Business Services [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	1,412	1,218
Global Small Business Services [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	1,397	1,202
Global Small Business Services [Member] | Card Member Receivables [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	5	9
Global Small Business Services [Member] | Card Member Receivables [Member] | 60 To 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	4	2
Global Small Business Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	$ 6	$ 5

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Card Member Receivables and Loans (Details 3)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
U.S. Consumer Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.0083	0.0054
U.S. Consumer Services [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.0073	0.0048
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.015	0.0186
International Consumer and Network Services [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.012	0.0131
International Consumer and Network Services [Member] | Card Member Loans [Member] | Net Write-Off Rate [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.0124	0.0115
International Consumer and Network Services [Member] | Card Member Loans [Member] | 30 Days Past Due as a % of Total [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.0071	0.0084
Global Corporate Payments [Member] | Card Member Receivables [Member] | Net Loss Ratio as a % of Charge Volume [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.0008	0.0006
Global Corporate Payments [Member] | Card Member Receivables [Member] | 90 days past billing as a percentage of receivables [Member}
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.0083	0.009
Global Small Business Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.0111	0.0103
Global Small Business Services [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.0106	0.0131

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Card Member Receivables and Loans (Details Textuals) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Deferred discount revenue on Card Member receivable	$ 43	$ 27

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Reserves (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the Card Member receivable reserve for losses
Balance, January 1	$ 110	$ 114	$ 94
Provisions	238	145	160
Other credits	58	20	32
Net write-offs	(198)	(146)	(157)
Other debits	(63)	(23)	(15)
Balance, December 31	$ 145	$ 110	$ 114

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Reserves (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the Card Member loans reserve for losses [Line Items]
Balance, January 1	$ 5	$ 4	$ 3
Provisions	6	6	5
Net Write-Offs	(6)	(5)	(4)
Balance, December 31	$ 5	$ 5	$ 4

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Reserves (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reserves For Losses (Textuals) [Abstract]
Participation interests in Card Member receivables purchased from affiliates	$ 9,400	$ 5,400	$ 5,800
Allowance for Card Member Receivables, Recoveries of Bad Debts	95	91	100
Allowance for Card Member Loans, Recoveries of Bad Debts	1	1	1
Participation Interest in Card Member Receivables Sold to Affiliates	$ 9,400	$ 5,700	$ 2,600

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Debt (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Short Term Debt Line Items
Outstanding Balance	$ 1,308	$ 2,993
Year-End Stated Rate on Debt	1.51%	1.13%
Commercial Paper [Member] | Short Term Debt [Member]
Short Term Debt Line Items
Outstanding Balance	$ 1,168	$ 2,993
Year-End Stated Rate on Debt	1.54%	1.13%
Other Short Term Borrowings [Member] | Short Term Debt [Member]
Short Term Debt Line Items
Outstanding Balance	$ 140	$ 0
Year-End Stated Rate on Debt	1.27%	0.00%

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Debt (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total Long-term Debt	$ 24,153	$ 20,512
Year-End Stated Rate on Debt	1.51%	1.13%
Unamortized Underwriting Fees	$ (49)	$ (39)
Long-term Debt [Member]
Debt Instrument [Line Items]
Year-End Stated Rate on Debt	2.21%	1.88%
Fixed Rate Senior Notes Amount [Member] | Long-term Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date Range, Start	2018
Debt Instrument, Maturity Date Range, End	2027
Total Long-term Debt	$ 19,652	$ 16,201
Year-End Stated Rate on Debt	2.24%	1.98%
Year End Effective Interest Rate With Swaps	2.27%	1.44%
Floating Rate Senior Notes Amount [Member] | Long-term Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date Range, Start	2018
Debt Instrument, Maturity Date Range, End	2022
Total Long-term Debt	$ 4,550	$ 4,350
Year-End Stated Rate on Debt	2.09%	1.52%
Year End Effective Interest Rate With Swaps	0.00%	0.00%

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Debt (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Long Term Debt By Maturity Abstract
2018	$ 3,654
2019	7,150
2020	6,600
2021	2,939
2022	2,050
Thereafter	2,000
Total	24,393
Unamortized Underwriting Fees	(49)	$ (39)
Unamortized Discount and Premium	(36)
Impacts due to Fair Value Hedge Accounting	(155)
Total Long-term Debt	$ 24,153	$ 20,512

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Debt ( Details Textuals) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Fees to maintain credit lines	$ 6.0	$ 2.2
Ratio of combined earnings and fixed earnings to fixed charges required to maintain availability of credit line	1.25
Line of credit facility financial covenants combined earnings and fixed charges to fixed charges ratio actual	1.5
Average Commercial Paper Outstanding	$ 1,076.0	491.0
Total Interest Paid on short and long term debt	500.0	300.0	$ 300.0
Long Term Debt [Member] | ParentCompanyMember
Debt Instrument [Line Items]
Total bank lines of credit of the company	3,500.0	3,000.0
Unutilized total credit lines	$ 3,500.0	$ 3,000.0

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Restrictions as to Dividends and Limitations on Indebtness (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
RestrictionsTextuals[Abstract]
Minimum consolidated net worth	$ 50
Ratio of combined earnings and fixed earnings to fixed charges required to maintain availability of credit line	1.25

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Derivatives and Hedging Activities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Cash collateral netting, Liabilities	$ 0.0	$ (49.0)
Cash collateral netting, Assets	0.0	(2.0)
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset and derivative liability netting	(26.0)	(27.0)
Total derivatives assets, net	37.0	272.0
Other Assets [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	54.0	173.0
Other Assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	9.0	128.0
Other Assets [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	0.0	22.0
Other Assets [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	54.0	151.0
Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative asset and derivative liability netting	(26.0)	(27.0)
Total derivatives liabilities, net	69.0	22.0
Other Liabilities [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	38.0	70.0
Other Liabilities [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	57.0	28.0
Other Liabilities [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	0.0	69.0
Other Liabilities [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	$ 38.0	$ 1.0

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Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contract [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Interest rate derivative contract	$ (129)	$ (102)	$ (31)
Hedged item	100	91	44
Net hedge ineffectiveness (losses) gains	$ (29)	$ (11)	$ 13

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Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivatives And Hedging Activities Textuals [Abstract]
Net reduction in interest expense on long term debt	$ 53	$ 126	$ 177
Derivative [Line Items]
Ineffectiveness reclassified from AOCI into income	0	0	0
Margin on interest rate swap not netted	115	144
Fair Value Hedging [Member]
Derivative [Line Items]
Notional amount of long-term debt	16,200	14,800
Net Investment Hedging [Member]
Derivative [Line Items]
Effective portion of gain (loss) on hedges	(174)	80	235
Other expense [Member]
Derivative [Line Items]
Gain in Changes of Fair Value of Derivatives not designated as hedges	$ 21	$ 1	$ 14

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Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Assets [Abstract]
Derivatives	$ 63	$ 301
Total assets	63	301
Liabilities [Abstract]
Derivatives	95	98
Total liabilities	$ 95	$ 98

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Fair Value (Details 1) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	$ 556	$ 471
Loans to affiliates and other	14,527	10,659	$ 14,262
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	24,153	20,512
Long Term Debt with Affiliates	270	0	$ 0
Carrying Value [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	200	1,200
Other financial assets	20,600	19,300
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	600	500
Loans to affiliates and other	14,500	10,700
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	8,600	9,100
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	24,200	20,500
Long Term Debt with Affiliates	300	0
Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	200	1,200
Other financial assets	20,600	19,300
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	600	500
Loans to affiliates and other	14,400	10,700
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	8,600	9,100
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	24,500	20,700
Long Term Debt with Affiliates	300	0
Level 1 [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	200	200
Other financial assets	100	0
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	0	0
Loans to affiliates and other	0	0
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	0	0
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	0	0
Long Term Debt with Affiliates	0	0
Level 2 [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	0	1,000
Other financial assets	20,500	19,300
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	0	0
Loans to affiliates and other	10,000	7,900
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	8,600	9,100
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	24,500	20,700
Long Term Debt with Affiliates	300	0
Level 3 [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	0	0
Other financial assets	0	0
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	600	500
Loans to affiliates and other	4,400	2,800
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	0	0
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	0	0
Long Term Debt with Affiliates	$ 0	$ 0

XML

Fair Value (Details Textuals) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value for impairment	$ 0	$ 0

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Variable Interest Entity (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Total assets	$ 35,889	$ 31,936
Total liabilities	34,018	29,727
Variable Interest Entity, Primary Beneficiary [Member] | American Express Canada Credit Corporation Member [Member]
Variable Interest Entity [Line Items]
Total assets	500	1,700
Total liabilities	500	1,700
Liabilities eliminated in consolidation	0	1,300
Assets eliminated in consolidation	$ 0	$ 1,700

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Transactions with Affiliates (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Parties Details [Abstract]
Loans to affiliates and other	$ 14,527	$ 10,659	$ 14,262
Average interest rate on loans to affiliates and other	2.19%	1.78%	1.81%
Due from affiliates	$ 189	$ 997	$ 615
Restricted cash with affiliates	100	0	0
Short-term debt to affiliates	$ 5,997	$ 4,559	$ 5,439
Average interest rate on short-term debt to affiliates	1.04%	0.49%	0.19%
Maximum month-end level of short-term borrowings during the year	$ 8,377	$ 5,091	$ 5,439
Long-term debt with affiliates	$ 270	$ 0	$ 0
Average interest rate long-term debt to affiliates	0.23%	0.00%	0.00%
Maximum month-end level of long-term borrowings during the year	$ 270	$ 0	$ 0
Due to affiliates	1,988	1,517	1,727
Maximum month-end level of loans to affiliates during the year	14,527	13,083	17,711
Interest income from affiliates and other	279	207	246
Interest expense to affiliates	58	24	10
Related Party Transaction [Line Items]
Other, net	15	14	(22)
Related Party [Member]
Related Party Transaction [Line Items]
Other, net	$ 2	$ 1	$ 1

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Transactions with Affiliates (Details 1) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Loans to affiliates and other	$ 14,527	$ 10,659	$ 14,262
American Express Company [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	961	4,044
American Express Services Europe Limited [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	2,747	2,484
Amex Bank Of Canada [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	1,737	1,593
American Express Australia Limited [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	1,616	1,290
American Express Company (Mexico) S.A. de C.V. [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	812	765
American Express Bank (Mexico) S.A. [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	325	291
American Express International, Inc. [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	1,180	0
American Express Saudi Arabia (C) JSC [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	34	0
Alpha Card S.C.R.L./C.V.B.A [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	138	0
American Express International (NZ), Inc. [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	80	85
American Express Limited [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	3,847	0
Amex Global Holdings CV [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	888	0
Amex Funding Management (Europe) Limited [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	38	0
American Express International, Inc. - Branch - Singapore [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	$ 124	$ 107

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Transactions with Affiliates (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Short-term debt to affiliates	$ 5,997	$ 4,559	$ 5,439
AE Exposure Management Limited [Member]
Related Party Transaction [Line Items]
Short-term debt to affiliates	4,548	3,361
American Express Swiss Holdings Gmbh [Member]
Related Party Transaction [Line Items]
Short-term debt to affiliates	444	376
American Express Europe LLC [Member]
Related Party Transaction [Line Items]
Short-term debt to affiliates	765	515
American Express Holdings Netherlands CV [Member]
Related Party Transaction [Line Items]
Short-term debt to affiliates	192	192
Amex Funding Management (Europe) Limited [Member]
Related Party Transaction [Line Items]
Short-term debt to affiliates	0	73
Accertify Inc. [Member]
Related Party Transaction [Line Items]
Short-term debt to affiliates	$ 48	$ 42

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Transactions with Affiliates (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Parties Textuals [Abstract]
Card Member receivables and loans purchased without recourse from TRS	$ 262,000	$ 225,000	$ 227,000
Participation Interest And Card Member Receivables Sold To Affiliates	9,400	5,700	2,600
Discount Revenue Earned From Purchased Cardmember Receivables And Loans	760	471	479
Uncharged Servicing Fees to Affiliates	234	253	242
Restricted Cash with Affiliates	100	0	0
Long Term Debt with Affiliates	270	0	0
Related Party Transaction [Line Items]
Loans to affiliates and other	14,527	10,659	$ 14,262
Participation interests in Card Member receivables purchased without recourse	4,100	4,000
30 Days or More Past Due [Member] | Reserves for Losses [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	0	0
Collateralized [Member]
Related Party Transaction [Line Items]
Loans to affiliates and other	$ 5,000	$ 3,300

XML

Changes In Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in other comprehensive income
Balances as of start of period	$ (1,263)
Net translation gain (loss) of investments in foreign operations	(209)	$ 49	$ 0
Balances as of end of period	(998)	(1,263)
Foreign Currency Translation Adjustment [Member]
Changes in other comprehensive income
Balances as of start of period	(1,263)	(1,156)	(787)
Net translation gain (loss) of investments in foreign operations	439	(187)	(604)
Net (losses) gains related to hedges of investment in foreign operations	(174)	80	235
Net change in accumulated other comprehensive income (loss)	265	(107)	(369)
Balances as of end of period	$ (998)	$ (1,263)	$ (1,156)

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Changes in Accumulated Other Comprehensive Income (Loss) (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other comprehensive loss
Foreign currency translation adjustments, tax	$ (209)	$ 49	$ 0
Net investment hedges	(103)	48	140
Total tax impact	(312)	$ 97	$ 140
Tax Benefits	$ 289

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Changes in Accumulated Other Comprehensive Income (Loss) (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Loss Income (Textuals) [Abstract]
Amount of gain loss reclassified from accumulated other comprehensive income to income	$ 0	$ 0

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Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current Income Tax Expense Benefit Continuing Operations [Abstract]
U.S. federal	$ 785	$ (4)	$ 15
U.S. state and local	15	(6)	(4)
Non-U.S.	24	11	20
Total current income tax expense	824	1	31
Deferred income tax expense (benefit):
U.S. federal	58	10	(5)
U.S. state and local	1	1	0
Non-U.S.	(5)	3	12
Total deferred income tax expense	54	14	7
Total income tax expense	$ 878	$ 15	$ 38

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Income Taxes (Details 1)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective tax rate reconciliation
U.S. statutory federal income tax rate	35.00%	35.00%	35.00%
(Decrease) increase in taxes resulting from:
State and local income taxes, net of federal benefit	(0.30%)	(0.50%)	0.00%
Non-U.S. subsidiaries earnings	(25.70%)	(25.10%)	(25.50%)
Tax Settlements	(1.10%)	(1.40%)	(0.40%)
Other	(0.20%)	(0.90%)	6.00%
U.S. Tax Act	311.60%	0.00%	0.00%
Actual tax rate	319.30%	7.10%	15.10%

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Income Taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Reserves not yet deducted for tax purposes	$ 26	$ 23
State income taxes	5	9
Foreign exchange loss	7	0
Other	0	1
Gross deferred tax assets	38	33
Deferred tax liabilities:
Investment in foreign subsidiaries	105	0
Foreign exchange gain	0	8
Gross deferred tax liabilities	105	8
Net deferred tax assets	$ (67)	$ 25

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Income Taxes (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, January 1	$ 308	$ 211	$ 364
Increases:
Current year tax positions	8	79	2
Tax positions related to prior years	0	24	1
Decreases:
Tax positions related to prior years	(289)	(1)	(152)
Settlements with tax authorities	0	(1)	0
Lapse of statute of limitations	(3)	(4)	(4)
Balance, December 31	$ 24	$ 308	$ 211

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Income Taxes (Details 4) $ in Millions	Dec. 31, 2017 USD ($)
Deemed Repatriation Tax Payments Due By Year [Line Items]
2018	$ 0
2019-2020	122
2021-2022	116
2023 and Thereafter	491
Total	$ 729

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Income Taxes (Details Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes (Textuals) [Line Items]
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax	$ 3
U.S. statutory federal income tax rate	35.00%	35.00%	35.00%
Out of period tax adjustment			$ 11
Accumulated earnings intended to be permanently reinvested outside the U.S.		$ 4,900
Unrecognized tax benefits	$ 24	308	211	$ 364
Unrecognized tax benefits that effect effective tax rate	19	12	14
Unrecognized tax benefits income tax penalties and interest expense	1	2	$ 1
Unrecognized tax benefits income tax penalties and interest accrued	5	48
Current federal taxes payable/receivable	786	17
Income tax paid/refund net	(308)	45
Tax benefit recognized in subsequent period		289
Out of period tax rate adjustment			4.40%
Tax positions related to prior years	(289)	$ (1)	$ (152)
U.S. Tax Act Discrete Net Charge	858
U.S. Tax Act Deemed Repatriation of Taxes	737
U.S. Tax Act Deferred Tax on distribution of foreign subs earnings	105
U.S. Tax Act Remeasurement Of Deferred Tax Assets and Liabilities	16
Deemed Repatriation Tax Payments Due By Year Total	$ 729
Tax Year 2018 [Member]
Income Taxes (Textuals) [Line Items]
U.S. statutory federal income tax rate	21.00%
Twelve Month [Member]
Income Taxes (Textuals) [Line Items]
Unrecognized tax benefits that effect effective tax rate	$ 2
Resolution Of Uncertain Tax Positions [Member]
Income Taxes (Textuals) [Line Items]
Unrecognized tax benefits income tax penalties and interest accrued	$ 42
Internal Revenue Service (IRS) [Member] | Earliest Year [Member]
Income Tax Contingency [Line Items]
Open tax years by major tax jurisdiction	2008
Internal Revenue Service (IRS) [Member] | Latest Year [Member]
Income Tax Contingency [Line Items]
Open tax years by major tax jurisdiction	2014

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Significant Credit Concentrations (Details) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Maximum Credit Exposure by Category
On-balance sheet	$ 36	$ 32
Individuals [Member]
Maximum Credit Exposure by Category
On-balance sheet	7	7
Financial Services [Member]
Maximum Credit Exposure by Category
On-balance sheet	1	2
Loans to affiliates and other
Maximum Credit Exposure by Category
On-balance sheet	15	11
Due from Affiliates [Member]
Maximum Credit Exposure by Category
On-balance sheet	0	1
Institutions [Member]
Maximum Credit Exposure by Category
On-balance sheet	$ 13	$ 11

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Significant Credit Concentrations (Details 1) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Card Member receivables and loans exposure
On-balance sheet	$ 36	$ 32
Individuals [Member]
Card Member receivables and loans exposure
On-balance sheet	7	7
Card Members Member Loans And Receivables [Member]
Card Member receivables and loans exposure
On-balance sheet	21	19
United States [Member]
Card Member receivables and loans exposure
On-balance sheet	15	14
Outside the United States [Member]
Card Member receivables and loans exposure
On-balance sheet	$ 6	$ 5

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Geographic Regions (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Revenues and Pretax Income (Loss) by Geographic Location [Line Items]
Revenues	$ 296	$ 286	$ 253	$ 252	$ 179	$ 180	$ 179	$ 180	$ 1,087	$ 718	$ 755
Pretax income	$ 72	$ 85	$ 52	$ 66	$ 20	$ 70	$ 65	$ 57	275	212	252
United States [Member]
Segment Revenues and Pretax Income (Loss) by Geographic Location [Line Items]
Revenues									779	440	442
Pretax income									9	16	111
Outside the United States [Member]
Segment Revenues and Pretax Income (Loss) by Geographic Location [Line Items]
Revenues									308	278	313
Pretax income									$ 266	$ 196	$ 141

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Quarterly Financial Data (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of quarterly financial data
Revenues	$ 296	$ 286	$ 253	$ 252	$ 179	$ 180	$ 179	$ 180	$ 1,087	$ 718	$ 755
Pretax income	72	85	52	66	20	70	65	57	275	212	252
Net (loss) income	$ (791)	$ 72	$ 57	$ 59	$ 29	$ 60	$ 57	$ 51	$ (603)	$ 197	$ 214