Fair Values

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Values

Fair Values

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of September 30, 2024 and December 31, 2023:

	2024								2023
(Millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Investment securities: (a)
Equity securities	$	43	$	43	$	—	$	—	$	66	$	66	$	—	$	—
Debt securities	1,225		—		1,151		74		2,120		—		2,046		74
Derivatives, gross (a)(b)	371		—		349		22		80		—		62		18
Total Assets	1,639		43		1,500		96		2,266		66		2,108		92
Liabilities:
Derivatives, gross (a)	758		—		758		—		977		—		977		—
Total Liabilities	$	758	$	—	$	758	$	—	$	977	$	—	$	977	$	—

(a)Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis.

(b)Level 3 fair value reflects an embedded derivative. Management reviews and applies judgment to the valuation of the embedded derivative that is performed by an independent third party using a Monte Carlo simulation that models a range of probable future stock prices based on implied volatility in a risk neutral framework. Refer to Note 8 for additional information about this embedded derivative.

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of September 30, 2024 and December 31, 2023. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2024 and December 31, 2023, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.

	Carrying Value		Corresponding Fair Value Amount
2024 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	48	$	48	$	47	$	1	$	—
Other financial assets (b)	62		62		—		62		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	137		143		—		—		143
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	151		151		—		151		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	12		12		—		12		—
Long-term debt (c)	$	54	$	54	$	—	$	54	$	—

	Carrying Value		Corresponding Fair Value Amount
2023 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	47	$	47	$	45	$	2	$	—
Other financial assets (b)	63		63		—		63		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	128		133		—		—		133
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	143		143		—		143		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	19		18		—		18		—
Long-term debt (c)	$	48	$	48	$	—	$	48	$	—

(a)Level 2 fair value amounts reflect time deposits and short-term investments.

(b)Balances include Card Member receivables (including fair values of Card Member receivables of $4.5 billion and $4.6 billion held by a consolidated VIE as of September 30, 2024 and December 31, 2023, respectively), other receivables and other miscellaneous assets.

(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $27.0 billion and $28.6 billion as of September 30, 2024 and December 31, 2023, respectively, and the fair values of Long-term debt were $16.8 billion and $13.3 billion as of September 30, 2024 and December 31, 2023, respectively.

(d)Presented as a component of Customer deposits on the Consolidated Balance Sheets.

Nonrecurring Fair Value Measurements

We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values.

We estimate the Level 3 fair value of equity investments without readily determinable fair values, which include investments in our Amex Ventures portfolio, based on price changes as of the date of new similar equity financing transactions completed by the companies in the portfolio. In addition, impairments on such investments are recorded to account for the difference between the estimated fair value and carrying value of an investment based on a qualitative assessment of impairment indicators such as business performance, general market conditions and the economic and regulatory environment. When an impairment triggering event occurs, the fair value measurement is generally derived by taking into account all available information, such as share prices of publicly traded peer companies, internal valuations performed by our investees, and other third-party fair value data. The fair value of impaired investments represents a Level 3 fair value measurement.

The carrying value of equity investments without readily determinable fair values totaled $0.9 billion as of both September 30, 2024 and December 31, 2023, of which investments representing nonrecurring Level 3 fair value measurement were $13.0 million and nil as of September 30, 2024 and December 31, 2023, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets.

We recorded unrealized gains of $1 million and nil for the three months ended September 30, 2024 and 2023, respectively, and $68 million and nil for the nine months ended September 30, 2024 and 2023, respectively. Unrealized losses were $20 million and $17 million for the three months ended September 30, 2024 and 2023, respectively, and $31 million and $122 million for the nine months ended September 30, 2024 and 2023, respectively. Unrealized gains and losses are recorded in Other, net on the Consolidated Statements of Income. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion as of both September 30, 2024 and December 31, 2023, and cumulative unrealized losses were $456 million and $431 million as of September 30, 2024 and December 31, 2023, respectively.

In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both September 30, 2024 and December 31, 2023.