10-Q

UNITED STATESSECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 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	(I.R.S. Employer Identification No.)
incorporation or organization)
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
None

(Former name, former address and former fiscal year, if changed since last report.)

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND HAS THEREFORE OMITTED CERTAIN ITEMS FROM THIS REPORT IN ACCORDANCE WITH THE REDUCED DISCLOSURE FORMAT PERMITTED UNDER GENERAL INSTRUCTION H(2).

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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth 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 Exchange Act).

 Yes  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at August 4, 2017
Common Stock (par value $0.10 per share)	1,504,938 Shares

Table of Contents

AMERICAN EXPRESS CREDIT CORPORATION
FORM 10-Q
INDEX
Part I.	Financial Information			Page No.
		Item 1.	Financial Statements
			Consolidated Statements of Income and Retained Earnings – Three and Six Months Ended June 30, 2017 and 2016	1
			Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2017 and 2016	2
			Consolidated Balance Sheets – June 30, 2017 and December 31, 2016	3
			Consolidated Statements of Cash Flows – Six Months Ended June 30, 2017 and 2016	4
			Notes to Consolidated Financial Statements	5
		Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)	17
		Item 4.	Controls and Procedures	24
Part II.	Other Information
		Item 1A.	Risk Factors	26
		Item 5.	Other Information	26
		Item 6.	Exhibits	26
Signatures				27
Exhibit Index				E-1

PART I. FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTS

AMERICAN EXPRESS CREDIT CORPORATIONCONSOLIDATED STATEMENTS OF INCOMEAND RETAINED EARNINGS (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Millions)	2017			2016			2017		2016
Revenues
Discount revenue earned from purchased Card Member receivables and loans	$	174		$	113		$	359	$	233
Interest income from affiliates and other		68			56			123		107
Finance revenue		11			10			23		19
Total revenues		253			179			505		359
Expenses
Provisions for losses		54			32			116		68
Interest expense		123			82			220		159
Interest expense to affiliates		13			6			22		11
Other, net		11			(6	)		29		(1	)
Total expenses		201			114			387		237
Pretax income		52			65			118		122
Income tax (benefit) provision		(5	)		8			2		14
Net income		57			57			116		108
Retained earnings at beginning of period		3,370			3,165			3,311		3,114
Retained earnings at end of period	$	3,427		$	3,222		$	3,427	$	3,222

See Notes to Consolidated Financial Statements.

1

AMERICAN EXPRESS CREDIT CORPORATIONCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(Millions)	2017		2016			2017		2016
Net income	$	57	$	57		$	116	$	108
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax		14		(85	)		322		(32	)
Other comprehensive income (loss)		14		(85	)		322		(32	)
Comprehensive income (loss)	$	71	$	(28	)	$	438	$	76

See Notes to Consolidated Financial Statements.

2

AMERICAN EXPRESS CREDIT CORPORATIONCONSOLIDATED BALANCE SHEETS (Unaudited)

	June 30,			December 31,
(Millions, except share data)	2017			2016
Assets
Cash and cash equivalents	$	1,313		$	1,211
Card Member receivables, less reserves: 2017, $146; 2016, $110		21,730			18,108
Card Member loans, less reserves: 2017, $5; 2016, $5		466			471
Loans to affiliates and other		10,033			10,659
Due from affiliates		1,572			997
Other assets		247			490
Total assets	$	35,361		$	31,936
Liabilities and Shareholder’s Equity
Liabilities
Short-term debt	$	998		$	2,993
Short-term debt to affiliates		4,970			4,559
Long-term debt		25,171			20,512
Total debt		31,139			28,064
Due to affiliates		1,290			1,517
Accrued interest and other liabilities		285			146
Total liabilities	$	32,714		$	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		3,427			3,311
Accumulated other comprehensive loss
Foreign currency translation adjustments, net of tax of: 2017, $(16); 2016, $329		(941	)		(1,263	)
Total accumulated other comprehensive loss		(941	)		(1,263	)
Total shareholder’s equity		2,647			2,209
Total liabilities and shareholder’s equity	$	35,361		$	31,936

See Notes to Consolidated Financial Statements.

3

AMERICAN EXPRESS CREDIT CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended June 30 (Millions)	2017			2016
Cash Flows from Operating Activities
Net income	$	116		$	108
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for losses		116			68
Amortization of underwriting expense		13			11
Deferred taxes		(51	)		4
Changes in operating assets and liabilities:
Interest, taxes and other amounts due from/to affiliates		256			23
Other operating assets and liabilities		12			315
Net cash provided by operating activities		462			529
Cash Flows from Investing Activities
Net (increase) decrease in Card Member receivables and loans, including held for sale (a)		(3,529	)		1,048
Net decrease in loans to affiliates and other		968			1,508
Net increase in due from/to affiliates		(756	)		(1,313	)
Net cash (used in) provided by investing activities		(3,317	)		1,243
Cash Flows from Financing Activities
Net decrease in short-term debt		(1,995	)		(1,989	)
Net increase (decrease) in short-term debt to affiliates		380			(1,007	)
Issuance of long-term debt		8,443			1,743
Principal payments on long-term debt		(3,900	)		(460	)
Net cash provided by (used in) financing activities		2,928			(1,713	)
Effect of foreign currency exchange rates on cash and cash equivalents		29			2
Net increase in cash and cash equivalents		102			61
Cash and cash equivalents at beginning of period		1,211			173
Cash and cash equivalents at end of period	$	1,313		$	234
(a)  Refer to Note 1 for additional information.

See Notes to Consolidated Financial Statements.

4

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

1.   Basis of Presentation

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 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 and Retained Earnings.

The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in Credco’s Annual Report on Form 10-K for the year ended December 31, 2016 (Form 10-K). If not materially different, certain footnote disclosures included therein have been omitted from this Quarterly Report on Form 10-Q.

The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year.

The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These accounting estimates reflect the best judgment of management, but actual results could differ.

5

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

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, supersedes most of the current revenue recognition requirements, and is effective January 1, 2018.

Upon adoption of the new revenue recognition guidance, Credco anticipates using the full retrospective method, which applies the new standard to each prior reporting period presented. Credco has been working on the implementation of the standard since its issuance in 2014 and has made significant progress in evaluating the potential impact on its Consolidated Financial Statements. Credco does not expect a significant impact to pretax income upon adoption.

In January 2016, the FASB issued new accounting guidance on the recognition and measurement of financial assets and financial liabilities. The guidance, which is effective January 1, 2018, makes targeted changes to current GAAP, specifically to the classification and measurement of equity securities, and to certain disclosure requirements associated with the fair value of financial instruments. Credco continues to evaluate the impact this guidance will have on its financial position, results of operations and cash flows, as well as the impact the standard may have on its accounting policies, business processes, systems and internal controls.

In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, which is 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, among other financial instruments, 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. American Express is currently identifying key interpretive issues, and is evaluating existing credit loss forecasting models and processes in relation to the new guidance to determine what modifications may be required.

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 second quarter 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.

6

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

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.

The net volume of Card Member receivables purchased during the six months ended June 30, 2017 and 2016 was approximately $124 billion and $109 billion, respectively. As of June 30, 2017 and December 31, 2016, Credco Receivables Corporation (CRC) owned approximately $6.5 billion and $4.0 billion, respectively, of participation interests in Card Member receivables purchased without recourse from RFC VIII.

Card Member receivables as of June 30, 2017 and December 31, 2016 consisted of:

(Millions)	2017		2016
U.S. Consumer Services	$	5,601	$	3,518
International Consumer and Network Services (a)		1,579		1,526
Global Commercial Services (b)		14,696		13,174
Card Member receivables (c)		21,876		18,218
Less: Reserve for losses		146		110
Card Member receivables, net (d)	$	21,730	$	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 June 30, 2017 and December 31, 2016, respectively.

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

The net volume of Card Member loans purchased during the six months ended June 30, 2017 and 2016 was $2.1 billion and $2.0 billion, respectively.

Card Member loans as of June 30, 2017 and December 31, 2016 consisted of:

(Millions)	2017		2016
International Consumer and Network Services (a)	$	471	$	476
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	466	$	471

(a) Comprised of International consumer card business.

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

7

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

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 June 30, 2017 and December 31, 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	$	5,561	$	15	$	7	$	18	$	5,601
International Consumer and Network Services		1,560		7		4		8		1,579
Global Commercial Services
Global Small Business Services		1,615		7		3		8		1,633
Global Corporate Payments (a)	(b)		(b)		(b)			110		13,063
Card Member Loans:
International Consumer and Network Services	$	467	$	1	$	1	$	2	$	471
				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

(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.

8

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

Credit Quality Indicators for Card Member Receivables and Loans

The following tables present the key credit quality indicators as of or for the six months ended June 30:

	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	0.67	%	0.71	%		0.67	%		0.58	%
International Consumer and Network Services	1.55	%	1.20	%		2.13	%		1.39	%
Global Small Business Services	1.03	%	1.10	%		1.18	%		0.82	%
Card Member Loans:
International Consumer and Network Services	1.28	%	0.85	%		1.40	%		0.70	%

	2017				2016
	Net Loss		90+ Days		Net Loss			90+ Days
	Ratio as a		Past Billing		Ratio as a			Past Billing
	% of		as a % of		% of			as a % of
	Charge Volume	(b)	Receivables		Charge Volume		(b)	Receivables
Card Member Receivables:
Global Corporate Payments	0.08	%	0.84	%		0.06	%		0.72	%

(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.

9

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

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.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the six months ended June 30:

(Millions)	2017			2016
Balance, January 1	$	110		$	114
Provisions		113			64
Other credits (a)		33			6
Net write-offs (b)		(94	)		(75	)
Other debits (c)		(16	)		(10	)
Balance, June 30	$	146		$	99

(a) Primarily reserve balances related to participation interests in Card Member receivables purchased from affiliates. Participation interests in Card Member receivables purchased totaled $6.0 billion and $1.1 billion for the six months ended June 30, 2017 and 2016, respectively.

(b) Net of recoveries of $45 million and $47 million for the six months ended June 30, 2017 and 2016, 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 $2.6 billion and $2.3 billion for the six months ended June 30, 2017 and 2016, respectively.

Changes in Card Member Loans Reserve for Losses

The following table presents changes in the Card Member loans reserve for losses for the six months ended June 30:

(Millions)	2017			2016
Balance, January 1	$	5		$	4
Provisions		3			4
Net write-offs (a)		(3	)		(3	)
Balance, June 30	$	5		$	5

(a) Net of recoveries of $1.0 million for both the six months ended June 30, 2017 and 2016.

10

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

4.   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.

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. Based on its assessment of the credit risk of Credco’s derivative counterparties as of June 30, 2017 and December 31, 2016, no credit risk adjustment to the derivative portfolio was required.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of June 30, 2017 and December 31, 2016:

	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		4			151			104			1
Total derivatives designated as hedging instruments		4			173			104			70
Derivatives not designated as hedging instruments:
Foreign exchange contracts		32			128			36			28
Total derivatives, gross		36			301			140			98
Less: Cash collateral netting (b)(c)		―			(2	)		―			(49	)
Derivative asset and derivative liability netting (d)		(11	)		(27	)		(11	)		(27	)
Total derivatives, net (e)	$	25		$	272		$	129		$	22

(a) Effective January 2017, the Central Clearing Party changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as opposed to collateral. As of June 30, 2017, centrally cleared derivatives are fully collateralized.

(b) Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivatives executed with the same counterparty under an enforceable master netting arrangement.

(c) Credco held no non-cash collateral as of June 30, 2017 and December 31, 2016, respectively. To mitigate counterparty credit risk related to derivatives, Credco may accept non-cash collateral from its derivatives counterparties. Additionally, Credco posted $152 million and $144 million as of June 30, 2017 and December 31, 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.

(e) Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and net derivative liabilities are presented within Other assets and Accrued interest and Other liabilities, respectively, on Credco’s Consolidated Balance Sheets.

A majority of Credco’s derivative assets and liabilities as of June 30, 2017 and December 31, 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.

Fair Value Hedges

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 $16.9 billion and $14.8 billion of its fixed-rate debt obligations designated in fair value hedging relationships as of June 30, 2017 and December 31, 2016, respectively.

11

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

The following table summarizes the gains (losses) recognized in Other expenses associated with Credco’s fair value hedges for the three and six months ended June 30:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Millions)	2017			2016			2017			2016
Interest rate derivative contracts	$	20		$	63		$	(30	)	$	205
Hedged items		(37	)		(55	)		(8	)		(201	)
Net hedge ineffectiveness	$	(17	)	$	8		$	(38	)	$	4

Credco also recognized a net reduction in interest expense on long-term debt of $17 million and $34 million for the three months ended June 30, 2017 and 2016, respectively, and $39 million and $68 million for the six months ended June 30, 2017 and 2016, respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges.

Net Investment Hedges

The effective portion of the gain or loss on net investment hedges, net of taxes, recorded in accumulated other comprehensive income (loss) (AOCI) as part of the cumulative translation adjustment, was a loss of $40 million and a gain of $51 million for the three months ended June 30, 2017 and 2016, respectively, and a loss of $168 million and a gain of $1 million for the six months ended June 30, 2017 and 2016, 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 three and six months ended June 30, 2017 and 2016.

Derivatives Not Designated as Hedges

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 gain of $6 million and a net loss of $1 million for the three months ended June 30, 2017 and 2016, respectively, and a net gain of $10 million and a net loss of $2 million for the six months ended June 30, 2017 and 2016, respectively, and are recognized in Other expenses.

5.   Fair Values

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 of June 30, 2017 and December 31, 2016:

(Millions)	2017		2016
Assets:
Derivatives (a)	$	36	$	301
Total assets		36		301
Liabilities:
Derivatives (a)		140		98
Total liabilities	$	140	$	98

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

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AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table summarizes the estimated fair values of Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of June 30, 2017 and December 31, 2016. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of June 30, 2017 and December 31, 2016, and require management’s 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
Cash and cash equivalents(a)	$	1.3	$	1.3	$	0.2	$	1.1	$	―
Other financial assets		23.4		23.4		―		23.4		―
Financial assets carried at other than fair value
Card Member loans, net		0.5		0.5		―		―		0.5
Loans to affiliates and other		10.0		10.0		―		7.1		2.9
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value		7.4		7.4		―		7.4		―
Financial liabilities carried at other than fair value
Long-term debt	$	25.2	$	25.4	$	―	$	25.4	$	―

	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
Cash and cash equivalents(a)	$	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	$	―

(a) Level 1 amounts reflect interest-bearing deposits in banks and Level 2 amount reflects time deposits and short-term investments.

Nonrecurring Fair Value Measurements

During the six months ended June 30, 2017 and during the year ended December 31, 2016, Credco did not have any assets that were measured at fair value due to impairment on a nonrecurring basis.

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AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

6.  Variable Interest Entity

Credco has established a Variable Interest Entity (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 June 30, 2017 and December 31, 2016 were $1.8 billion and $1.7 billion, respectively, the majority of which were eliminated in consolidation. Total liabilities as of both June 30, 2017 and December 31, 2016 were $1.7 billion. As of both June 30, 2017 and December 31, 2016, $1.3 billion 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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AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

7.  Changes in Accumulated Other Comprehensive Income

AOCI 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 and six months ended June 30, 2017 and 2016 were as follows:

	Foreign
	Currency
	Translation
Three Months Ended June 30, 2017 (Millions), net of tax	Adjustments
Balances as of March 31, 2017	$	(955	)
Net translation gain of investments in foreign operations		54
Net losses related to hedges of investment in foreign operations		(40	)
Net change in accumulated other comprehensive loss		14
Balances as of June 30, 2017	$	(941	)
	Foreign
	Currency
	Translation
Six Months Ended June 30, 2017 (Millions), net of tax	Adjustments
Balances as of December 31, 2016	$	(1,263	)
Net translation gain of investments in foreign operations (a)		490
Net losses related to hedges of investment in foreign operations		(168	)
Net change in accumulated other comprehensive loss		322
Balances as of June 30, 2017	$	(941	)
(a) Includes $289 million of recognized tax benefits (Refer to Note 8).
	Foreign
	Currency
	Translation
Three Months Ended June 30, 2016 (Millions), net of tax	Adjustments
Balances as of March 31, 2016	$	(1,103	)
Net translation loss of investments in foreign operations		(136	)
Net gains related to hedges of investment in foreign operations		51
Net change in accumulated other comprehensive loss		(85	)
Balances as of June 30, 2016	$	(1,188	)
	Foreign
	Currency
	Translation
Six Months Ended June 30, 2016 (Millions), net of tax	Adjustments
Balances as of December 31, 2015	$	(1,156	)
Net translation loss of investments in foreign operations		(33	)
Net gains related to hedges of investment in foreign operations		1
Net change in accumulated other comprehensive loss		(32	)
Balances as of June 30, 2016	$	(1,188	)

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AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

The following table shows the tax impact for the three and six months ended June 30, for the changes in Foreign Currency Translation Adjustments presented above:

	Tax (benefit) expense
	Three Months Ended					Six Months Ended
	June 30,					June 30,
(Millions)	2017			2016		2017			2016
Foreign currency translation adjustments (a)	$	(27	)	$	79	$	(345	)	$	49
Total tax impact	$	(27	)	$	79	$	(345	)	$	49

(a) Includes $289 million of tax benefits recognized in the six months ended June 30, 2017 (Refer to Note 8).

No amounts were reclassified out of AOCI into the Consolidated Statements of Income and Retained Earnings for the three and six months ended June 30, 2017 and 2016.

8.   Income Taxes

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 effective tax rate was (9.6) percent and 12.3 percent for the three months ended June 30, 2017 and 2016 respectively, and 1.7 percent and 11.5 percent for the six months ended June 30, 2017 and 2016 respectively. The changes in tax rates primarily reflected the geographic mix of expenses in the United States attracting a 35 percent statutory benefit and foreign earnings taxed at lower rates, which are indefinitely reinvested.

The tax rate in each of the periods reflects the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States. Credco’s provision for income taxes for interim financial periods is not based on an estimated annual effective rate due to volatility in certain components of revenues and expenses that prevents Credco from projecting a reliable estimate of full year pretax income. A discrete calculation of the provision for income taxes is recorded for each interim period.

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 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 tax years 2008 through 2014.

During the six months ended June 30, 2017, Credco’s unrecognized tax benefits decreased by $288 million. The decrease was primarily due to the resolution with the IRS of an uncertain tax position in January 2017, and resulted in the recognition of $289 million in shareholder’s equity, specifically within AOCI. Interest relating to unrecognized tax benefits also decreased by approximately $42 million due to the resolution of this uncertain tax position. The decrease in accrued interest had no impact on either the income tax provision or AOCI.

Credco believes it is reasonably possible that its unrecognized tax benefits could decrease by an immaterial amount within the next 12 months 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 attribution of taxable income to a particular jurisdiction or jurisdictions. The resolution of such items would not have a material impact on Credco’s effective tax rate.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

Overview

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). 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 and revolving loans are primarily funded by subsidiaries of TRS other than Credco.

Certain of the statements in this Form 10-Q report are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the “Cautionary Note Regarding Forward-Looking Statements” section.

Business Overview

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

American Express’ results for the second quarter continue to reflect solid progress against its current priorities of accelerating revenue growth, optimizing investments and resetting the cost base.

Although competition remains intense and the regulatory environment is uncertain, American Express 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 and Costco 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 do 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.

Results of Operations for the Six Months Ended June 30, 2017 and 2016

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 increased $8 million or 7 percent to $116 million, as compared to $108 million for the same period in 2016. The year-over-year increase is primarily due to higher Discount revenue earned from purchased Card Member receivables and loans, higher Interest income from affiliates and other and lower Income tax expense, partially offset by higher Interest expense, higher Provisions for losses and higher Other expenses.

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Table 1: Total Revenues Summary

Six Months Ended June 30,					Change
(Millions, except percentages)	2017		2016		2017 vs. 2016
Discount revenue earned from purchased Card Member receivables and loans	$	359	$	233	$	126	54	%
Interest income from affiliates and other		123		107		16	15
Finance revenue		23		19		4	21
Total revenues	$	505	$	359	$	146	41	%

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

Six Months Ended June 30,						Change
(Millions, except percentages)	2017		2016			2017 vs. 2016
Provisions for losses (a)	$	116	$	68		$	48	71	%
Interest expense		220		159			61	38
Interest expense to affiliates		22		11			11	#
Other, net		29		(1	)		30	#
Total expenses	$	387	$	237		$	150	63	%

# Denotes a variance greater than 100 percent

(a) Effective December 1, 2015, does not reflect provisions related to the HFS portfolio.

Total expenses

Provisions for losses increased, primarily due to higher net write-offs and higher delinquencies.

Interest expense increased, primarily due to higher LIBOR rates.

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

Other expenses increased, primarily driven by expenses associated with hedging of fixed-rate debt of $38 million, partially offset by forward point gains of $10 million.

Income taxes

The effective tax rates for the six months ended June 30, 2017 and 2016 were 1.7 percent and 11.5 percent, respectively. The tax rates for both periods reflect the geographic mix of expenses in the United States attracting a 35 percent statutory benefit and foreign earnings taxed at lower rates, which are indefinitely reinvested.

The effective tax rates in each of the periods also reflect the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States.

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Card Member Receivables and Card Member Loans

As of June 30, 2017 and December 31, 2016, Credco owned $21.9 billion and $18.2 billion, respectively, of gross Card Member receivables. Card Member receivables represent amounts due on American Express charge cards 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 June 30, 2017 and December 31, 2016, CRC owned approximately $6.5 billion and $4.0 billion, respectively, of such participation interests.

As of June 30, 2017 and December 31, 2016, Credco owned gross Card Member loans totaling $471 million and $476 million, respectively. These loans generally represent revolving amounts due on American Express credit cards.

The following table summarizes selected information related to the Card Member receivables portfolio as of or for the six months ended June 30:

Table 3: Selected Information Related to Card Member Receivables

(Millions, except percentages and where indicated)	2017			2016
Total gross Card Member receivables (a)	$	21,876		$	16,405
Loss reserves ― Card Member receivables (a)	$	146		$	99
Loss reserves as a % of receivables		0.7	%		0.6	%
Average life of Card Member receivables (# in days) (b)		29			30

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

(b) 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 periods indicated, to the volume of Card Member receivables purchased by Credco.

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 June 30, 2017 and December 31, 2016 were as follows:

Table 4: Loans to Affiliates and Other

(Millions)	2017		2016
American Express Company	$	3,107	$	4,044
American Express Services Europe Limited		2,602		2,484
Amex Bank of Canada		1,561		1,593
American Express Australia Limited		1,381		1,290
American Express Co. (Mexico) S.A. de C.V.		842		765
American Express Bank (Mexico) S.A.		348		291
American Express International, Inc.		108		107
American Express International (NZ) Inc.		84		85
Total (a)	$	10,033	$	10,659

(a) As of June 30, 2017 and December 31, 2016, approximately $3.5 billion and $3.3 billion, respectively, were collateralized by the underlying Card Member receivables and loans transferred with recourse.

Due from/to Affiliates

As of June 30, 2017 and December 31, 2016, amounts due from affiliates were $1.6 billion and $1.0 billion, respectively. As of June 30, 2017 and December 31, 2016, amounts due to affiliates were $1.3 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.

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Short-term Debt to Affiliates

Short-term debt to affiliates consists primarily of interest-bearing master notes for which there is no stated term. Credco does not expect any changes to its short-term funding strategies with affiliates. Components of short-term debt to affiliates as of June 30, 2017 and December 31, 2016 were as follows:

Table 5: Short-term Debt to Affiliates

(Millions)	2017		2016
AE Exposure Management Ltd.	$	3,527	$	3,361
American Express Europe LLC		725		515
American Express Swiss Holdings		402		376
American Express Holdings (Netherlands) C.V.		192		192
Amex Funding Management (Europe) Limited		79		73
Accertify, Inc.		45		42
Total	$	4,970	$	4,559

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 $117 million and $127 million for the six months ended June 30, 2017 and 2016, respectively. Correspondingly, discount revenue would have increased by approximately the same amounts in these periods.

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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.

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 6: Unsecured Debt Ratings

Credit Agency	Short-Term Ratings	Long-Term Ratings	Outlook
DBRS	R-1 (middle)	A (high)	Stable
Fitch	F1	A	Negative
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 borrowing, 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 June 30, 2017 and December 31, 2016, Credco had $1.0 billion and $3.0 billion, respectively, of commercial paper outstanding. The average commercial paper outstanding was $1.5 billion and $0.5 billion for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively.

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Long-term Debt Programs

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 an original contractual maturity greater than twelve months. Credco had the following long-term debt outstanding as of June 30, 2017 and December 31, 2016:

Table 7: Long-Term Debt Outstanding

(Billions)	2017		2016
Long-term debt outstanding (a)	$	25.2	$	20.5
Average long-term debt (b)	$	23.8	$	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 six and twelve months ended June 30, 2017 and December 31, 2016, respectively.

During the three months ended June 30, 2017, Credco issued $4.0 billion of senior unsecured notes consisting of $1.5 billion of two year notes at a fixed-rate of 1.88 percent, $500 million of two year notes at a floating rate of 3-month LIBOR plus 33 basis points, and $2.0 billion of ten year notes at a fixed-rate of 3.30 percent.

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 June 30, 2017 and December 31, 2016, Credco had $24.9 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 $4.6 billion (AUD $6 billion). During the six months ended June 30, 2017, no notes were issued under this program. As of June 30, 2017 and December 31, 2016, the entire amount of approximately $4.6 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. For the six months ended June 30, 2017, no notes were issued under this program. As of both June 30, 2017 and December 31, 2016, AECCC had $0.4 billion of medium-term notes outstanding under this program. AECCC’s financial results are included in the consolidated financial results of Credco.

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 the six months ended June 30, 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 June 30, 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 June 30, 2017, Credco had cash and cash equivalents of approximately $1.3 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.

As part of the liquidity and funding strategy to 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 repayment to Credco of an existing loan to American Express Company and outstanding balances owed to Credco by TRS.

Committed Bank Credit Facility

Credco maintained a U.S. dollar denominated committed syndicated bank credit facility as of June 30, 2017 of $3.0 billion, which expires on December 9, 2018. As of June 30, 2017, no amounts were drawn on the committed credit 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 ratio of earnings to fixed charges for Credco was 1.49 for the six months ended June 30, 2017. The ratio of earnings to combined fixed charges and preferred stock dividends for American Express for the six months ended June 30, 2017 was 4.65.

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.

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ITEM 4.  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 fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, Credco’s internal control over financial reporting.

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Cautionary Note Regarding Forward-Looking Statements

Various statements have been made in this Quarterly Report on this Second Quarter 2017 Form 10-Q 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 in Credco’s Annual Report on Form 10-K for the year ended December 31, 2016 (the 2016 Form 10-K) 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;

 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; and

 Credco’s tax rate remaining in line with current expectations, which could be impacted by, among other things, Credco’s geographic mix of income being weighted more to higher tax jurisdictions than expected, changes in tax laws and regulation and unfavorable tax audits and other unanticipated tax items.

25

PART II.  OTHER INFORMATION

ITEM 1A. RISK FACTORS

For a discussion of Credco’s risk factors, see Part I, Item 1A. “Risk Factors” of the 2016 Form 10-K. There are no material changes from the risk factors set forth in the 2016 Form 10-K. However, the risks and uncertainties that Credco faces are not limited to those set forth in the 2016 Form 10-K. Additional risks and uncertainties not presently known to Credco or that it currently believes to be immaterial may also adversely affect Credco’s business.

ITEM 5.   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 second quarter of 2017 they obtained approximately 95 visas 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.

ITEM 6.   EXHIBITS

The list of exhibits required to be filed with this report are listed on page E-1 hereof, under “Exhibit Index,” which is incorporated herein by reference.

26

SIGNATURES

Pursuant to the requirements 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: August 4, 2017	By	/s/ David L. Yowan
		David L. Yowan
		Chief Executive Officer
Date: August 4, 2017	By	/s/ Leah A. Schweller
		Leah A. Schweller
		Chief Accounting Officer

27

EXHIBIT INDEX

Pursuant to Item 601 of Regulation S-K

Exhibit No.	Description	How Filed
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.
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-1

EX-12.1

EXHIBIT 12.1

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

	Six Months Ended		Years Ended December 31,
(Dollars in Millions)	June 30, 2017		2016		2015		2014			2013			2012
Earnings:
Net income	$	116	$	197	$	214	$	353		$	446		$	339
Income tax provision (benefit)		2		15		38		(35	)		(96	)		(51	)
Interest expense including interest expense to affiliates		242		341		360		502			597			749
Total earnings	$	360	$	553	$	612	$	820		$	947		$	1,037
Fixed charges ― Interest expense including interest expense to affiliates	$	242	$	341	$	360	$	502		$	597		$	749
Ratio of earnings to fixed charges		1.49		1.62		1.70		1.63			1.59			1.38

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 and Retained Earnings.

EX-12.2

EXHIBIT 12.2

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

PREFERRED STOCK DIVIDENDS

	Six Months Ended		Years Ended December 31,
(Dollars in Millions)	June 30, 2017		2016		2015		2014		2013		2012
Earnings:
Pretax income from continuing operations	$	3,766	$	8,096	$	7,938	$	8,991	$	7,888	$	6,451
Interest expense (a)		965		1,704		1,623		1,707		1,958		2,226
Other adjustments (b)		57		101		118		402		133		117
Total earnings	$	4,788	$	9,901	$	9,679	$	11,100	$	9,979	$	8,794
Fixed charges:
Interest expense	$	965	$	1,704	$	1,623	$	1,707	$	1,958	$	2,226
Other adjustments (c)		24		56		62		79		93		102
Total fixed charges	$	989	$	1,760	$	1,685	$	1,786	$	2,051	$	2,328
Preferred stock dividends	$	40	$	80	$	62	$	―	$	―	$	―
Total fixed charges and preferred stock dividends	$	1,029	$	1,840	$	1,747	$	1,786	$	2,051	$	2,328
Ratio of earnings to combined fixed charges and preferred stock dividends		4.65		5.38		5.54		6.22		4.87		3.78

(a) Included in interest expense is interest expense related to the Card Member lending activities, international banking operations, and 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 net loss of affiliates accounted for under the equity method whose debt is not guaranteed by American Express, 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.

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David L. Yowan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q 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: August 4, 2017	/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 Quarterly Report on Form 10-Q 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: August 4, 2017	/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 this Quarterly Report on Form 10-Q of American Express Credit Corporation (the “Company”) for the quarterly period ended June 30, 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:   August 4, 2017

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-Q 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 this Quarterly Report on Form 10-Q of American Express Credit Corporation (the “Company”) for the quarterly period ended June 30, 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:   August 4, 2017

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-Q 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 - shares	6 Months Ended
	Jun. 30, 2017	Aug. 04, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	AMERICAN EXPRESS CREDIT CORPORATION
Entity Central Index Key	0000004969
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,504,938

XML

Consolidated Statements of Income and Retained Earnings - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Discount revenue earned from purchased Card Member receivables and loans	$ 174	$ 113	$ 359	$ 233
Interest income from affiliates and other	68	56	123	107
Finance revenue	11	10	23	19
Total revenues	253	179	505	359
Expenses
Provisions for losses	54	32	116	68
Interest expense	123	82	220	159
Interest expense to affiliates	13	6	22	11
Other, net	11	(6)	29	(1)
Total expenses	201	114	387	237
Pretax income	52	65	118	122
Income tax (benefit) provision	(5)	8	2	14
Net income	57	57	116	108
Retained earnings at beginning of period	3,370	3,165	3,311	3,114
Retained earnings at end of period	$ 3,427	$ 3,222	$ 3,427	$ 3,222

XML

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Consolidated Statement of Comprehensive Income [Abstract]
Net income	$ 57	$ 57	$ 116	$ 108
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	14	(85)	322	(32)
Other comprehensive income (loss)	14	(85)	322	(32)
Comprehensive income (loss)	$ 71	$ (28)	$ 438	$ 76

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 1,313	$ 1,211
Card Member receivables, less reserves	21,730	18,108
Card Member loans, less reserves	466	471
Loans to affiliates and other	10,033	10,659
Due from affiliates	1,572	997
Other assets	247	490
Total assets	35,361	31,936
Liabilities
Short-term debt	998	2,993
Short-term debt to affiliates	4,970	4,559
Long-term debt	25,171	20,512
Total debt	31,139	28,064
Due to affiliates	1,290	1,517
Accrued interest and other liabilities	285	146
Total liabilities	32,714	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	3,427	3,311
Accumulated other comprehensive loss:
Foreign currency translation adjustments, net of tax	(941)	(1,263)
Total accumulated other comprehensive loss	(941)	(1,263)
Total shareholder's equity	2,647	2,209
Total liabilities and shareholder's equity	$ 35,361	$ 31,936

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Assets
Card Member receivables, reserves	$ 146	$ 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	$ (16)	$ 329

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016
Cash Flows from Operating Activities
Net income		$ 116	$ 108
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for losses		116	68
Amortization of underwriting expenses		13	11
Deferred taxes		(51)	4
Changes in operating assets and liabilities:
Interest, taxes and other amounts due from/to affiliates		256	23
Other operating assets and liabilities		12	315
Net cash provided by operating activities		462	529
Cash Flows from Investing Activities
Net (increase) decrease in Card Member receivables and loans, including held for sale	[1]	(3,529)	1,048
Net decrease in loans to affiliates and other		968	1,508
Net increase in due from/to affiliates		(756)	(1,313)
Net cash (used in) provided by investing activities		(3,317)	1,243
Cash Flows from Financing Activities
Net decrease in short-term debt		(1,995)	(1,989)
Net increase (decrease) in short-term debt to affiliates		380	(1,007)
Issuance of long-term debt		8,443	1,743
Principal payments on long-term debt		(3,900)	(460)
Net cash provided by (used in) financing activities		2,928	(1,713)
Effect of foreign currency exchange rates on cash and cash equivalents		29	2
Net increase in cash and cash equivalents		102	61
Cash and cash equivalents at beginning of period		1,211	173
Cash and cash equivalents at end of period		$ 1,313	$ 234

[1] Refer to Note 1 for additional information.

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2017

Disclosure Text Block [Abstract]

Basis of Presentation

1. Basis of Presentation

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 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 and Retained Earnings.

The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in Credco’s Annual Report on Form 10-K for the year ended December 31, 2016 (Form 10-K). If not materially different, certain footnote disclosures included therein have been omitted from this Quarterly Report on Form 10-Q.

The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year.

The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These accounting estimates reflect the best judgment of management, but actual results could differ.

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, supersedes most of the current revenue recognition requirements, and is effective January 1, 2018.

Upon adoptionof the new revenue recognition guidance, Credcoanticipates using the full retrospective method, which applies the new standard to each prior reporting period presented. Credco has been working on the implementation of the standard since its issuance in 2014 and has made significant progress in evaluating the potential impact on its Consolidated Financial Statements.Credco does not expect a significant impact to pretax income upon adoption.

In January 2016, the FASB issued new accounting guidance on the recognition and measurement of financial assets and financial liabilities. The guidance, which is effective January 1, 2018, makes targeted changes to current GAAP, specifically to the classification and measurement of equity securities, and to certain disclosure requirements associated with the fair value of financial instruments. Credco continues to evaluate the impact this guidance will have on its financial position, results of operations and cash flows, as well as the impact the standard may have on its accounting policies, business processes, systems and internal controls.

In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, which is 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, among other financial instruments,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. American Express is currently identifying key interpretive issues, and is evaluating existing credit loss forecasting models and processes in relation to the new guidance to determine what modifications may be required.

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 second quarter 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.

XML

Card Member Receivables and Loans

6 Months Ended

Jun. 30, 2017

Card Member Receivables and Loans [Abstract]

Card Member Receivables and Loans

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.

The net volume of Card Member receivables purchased during the six months endedJune 30, 2017 and 2016 was approximately $124 billion and $109 billion, respectively. As of June 30, 2017 and December 31, 2016, Credco Receivables Corporation (CRC) owned approximately $6.5 billion and $4.0 billion, respectively, of participation interests in Card Member receivables purchased without recourse from RFC VIII.

Card Member receivables as of June 30, 2017 and December 31, 2016 consisted of

(Millions)		2017		2016
U.S. Consumer Services	$	5,601	$	3,518
International Consumer and Network Services (a)		1,579		1,526
Global Commercial Services (b)		14,696		13,174
Card Member receivables (c)		21,876		18,218
Less: Reserve for losses		146		110
Card Member receivables, net (d)	$	21,730	$	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 June 30, 2017 and December 31, 2016, respectively.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

The net volume of Card Member loans purchased during the six months endedJune 30, 2017 and 2016 was $2.1 billion and $2.0 billion, respectively.

Card Member loans as of June 30, 2017 and December 31, 2016 consisted of:

(Millions)		2017		2016
International Consumer and Network Services (a)	$	471	$	476
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	466	$	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 June 30, 2017 and December 31, 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	$	5,561	$	15	$	7	$	18	$	5,601
	International Consumer and Network Services		1,560		7		4		8		1,579
	Global Commercial Services
	Global Small Business Services		1,615		7		3		8		1,633
	Global Corporate Payments (a)		(b)		(b)		(b)		110		13,063
Card Member Loans:
	International Consumer and Network Services	$	467	$	1	$	1	$	2	$	471
					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 receivablesin 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 six months endedJune 30:

		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	0.67	%	0.71	%	0.67	%	0.58	%
	International Consumer and Network Services	1.55	%	1.20	%	2.13	%	1.39	%
	Global Small Business Services	1.03	%	1.10	%	1.18	%	0.82	%
Card Member Loans:
	International Consumer and Network Services	1.28	%	0.85	%	1.40	%	0.70	%
		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	%	0.84	%	0.06	%	0.72	%

• 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

6 Months Ended

Jun. 30, 2017

Reserves for Losses [Abstract]

Reserves for Losses

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.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the six months endedJune 30:

(Millions)		2017		2016
Balance, January 1		$	110	$	114
	Provisions		113		64
	Other credits (a)		33		6
	Net write-offs (b)		(94)		(75)
	Other debits (c)		(16)		(10)
Balance, June 30		$	146	$	99

• Primarily reserve balances related to participation interests in Card Member receivables purchased from affiliates. Participation interests in Card Member receivables purchased totaled $6.0 billion and $1.1billion for the six months endedJune 30, 2017 and 2016, respectively.
• Net of recoveries of $45 million and $47 million for the six months endedJune 30, 2017 and 2016, respectively.
• Primarily reserve balances related to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold totaled $2.6 billion and $2.3 billion for the six months endedJune 30,2017 and 2016, respectively.

Changes in Card Member Loans Reserve for Losses

The following table presents changes in the Card Member loans reserve for losses for the six months endedJune 30:

(Millions)		2017		2016
Balance, January 1		$	5	$	4
	Provisions		3		4
	Net write-offs(a)		(3)		(3)
Balance, June 30		$	5	$	5

Net of recoveries of $1.0 million for both the six months endedJune 30, 2017 and 2016.

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

4. 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.

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. Based on its assessment of the credit risk of Credco’s derivative counterparties as of June 30, 2017 and December 31, 2016, no credit risk adjustment to the derivative portfolio was required.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of June 30, 2017 and December 31, 2016:

		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			4		151		104		1
Total derivatives designated as hedging instruments			4		173		104		70
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		32		128		36		28
Total derivatives, gross			36		301		140		98
Less: Cash collateral netting (b)(c)			―		(2)		―		(49)
Derivative asset and derivative liability netting (d)			(11)		(27)		(11)		(27)
Total derivatives, net (e)		$	25	$	272	$	129	$	22

• Effective January 2017, the Central Clearing Party changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as opposed to collateral. As ofJune 30,2017, centrally cleared derivatives are fully collateralized.
• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivatives executed with the same counterparty under an enforceable master netting arrangement.
• Credco held no non-cash collateral as of June 30,2017 and December 31, 2016, respectively. To mitigate counterparty credit risk related to derivatives, Credco may accept non-cash collateral from its derivatives counterparties. Additionally, Credco posted $152 million and $144 million as of June 30, 2017 and December 31,2016, 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.
• Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and net derivative liabilities are presented within Other assets and Accrued interest and Other liabilities, respectively, on Credco’s Consolidated Balance Sheets.

A majority of Credco’s derivative assets and liabilities as of June 30,2017 and December 31,2016 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.

Fair Value Hedges

Credco is exposed to interest rate risk associated with its fixed-rate long-term debtobligations. 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 $16.9 billion and $14.8 billion of its fixed-rate debt obligations designated in fair value hedgingrelationships as ofJune 30, 2017 and December 31, 2016, respectively.

The following table summarizes the gains (losses) recognized in Other expenses associated with Credco’s fair value hedges for the three and six months endedJune 30:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(Millions)		2017		2016		2017		2016
Interest rate derivative contracts	$	20	$	63	$	(30)	$	205
Hedged items		(37)		(55)		(8)		(201)
Net hedge ineffectiveness	$	(17)	$	8	$	(38)	$	4

Credco also recognized a net reduction in interest expense on long-term debt of $17 million and $ 34 million for the three months endedJune 30, 2017 and 2016, respectively, and $39 million and $68 million for the six months endedJune 30, 2017 and 2016, respectively,primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges.

Net Investment Hedges

The effective portion of the gain or loss on net investment hedges, net of taxes, recorded in accumulated other comprehensive income (loss) (AOCI) as part of the cumulative translation adjustment, was a loss of $40 million and a gain of $51 million for the three months endedJune 30, 2017 and 2016, respectively, and a loss of $168 million and a gain of $1 million for the six months endedJune 30, 2017 and 2016, 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 three and six months endedJune 30,2017 and 2016.

Derivatives Not Designated as Hedges

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 gain of $ 6 million and a net loss of $1 million for the three months endedJune 30, 2017 and 2016, respectively, and a net gain of $ 10 million and a net loss of $2 million for the six months endedJune 30, 2017 and 2016, respectively,and are recognized in Other expenses.

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Fair Values

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Values

5. Fair Values

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 of June 30, 2017 and December 31, 2016:

(Millions)		2017		2016
Assets:
Derivatives (a)	$	36	$	301
Total assets		36		301
Liabilities:
Derivatives (a)		140		98
Total liabilities	$	140	$	98

Refer to Note 4 for the fair values of derivative assets and liabilities, on a further disaggregated basis.

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table summarizes the estimated fair values of Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of June 30, 2017 and December 31, 2016.The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of June 30, 2017 and December 31, 2016, and require management’s 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
			Cash and cash equivalents(a)	$	1.3	$	1.3	$	0.2	$	1.1	$	―
			Other financial assets		23.4		23.4		―		23.4		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.5		0.5		―		―		0.5
			Loans to affiliates and other		10.0		10.0		―		7.1		2.9
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			7.4		7.4		―		7.4		―
	Financial liabilities carried at other than fair value
			Long-term debt	$	25.2	$	25.4	$	―	$	25.4	$	―

				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
			Cash and cash equivalents(a)	$	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	$	―

Level 1 amounts reflect interest-bearing deposits in banks and Level 2 amount reflects time deposits and short-term investments.

Nonrecurring Fair Value Measurements

During the six months endedJune 30, 2017 and during the year ended December 31, 2016, Credco did not have any assets that were measured at fair value due to impairment on a nonrecurring basis.

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Variable Interest Entity

6 Months Ended

Jun. 30, 2017

Variable Interest Entity [Abstract]

Variable Interest Entity

6.Variable Interest Entity

Credco has established a Variable Interest Entity (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 June 30, 2017 and December 31,2016 were $1.8 billion and $1.7 billion, respectively, the majority of which were eliminated in consolidation. Total liabilities as of both June 30, 2017 and December 31,2016 were $1.7 billion. As of both June 30, 2017 and December 31,2016, $1.3 billion 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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Changes in Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2017

Changes In Accumulated Other Comprehensive Income Disclosure [Abstract]

Changes In Accumulated Other Comprehensive Loss

7. Changes in Accumulated Other Comprehensive Income

AOCI 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 and six months endedJune 30, 2017 and 2016 were as follows:

		Foreign
		Currency
		Translation
Three Months Ended June 30, 2017 (Millions), net of tax		Adjustments
Balances as of March 31, 2017	$	(955)
Net translation gain of investments in foreign operations		54
Net losses related to hedges of investment in foreign operations		(40)
Net change in accumulated other comprehensive loss		14
Balances as of June 30, 2017	$	(941)
		Foreign
		Currency
		Translation
Six Months Ended June 30, 2017 (Millions), net of tax		Adjustments
Balances as of December 31, 2016	$	(1,263)
Net translation gain of investments in foreign operations(a)		490
Net losses related to hedges of investment in foreign operations		(168)
Net change in accumulated other comprehensive loss		322
Balances as of June 30, 2017	$	(941)
(a) Includes $289 million of recognized tax benefits (Refer to Note 8).
		Foreign
		Currency
		Translation
Three Months Ended June 30, 2016 (Millions), net of tax		Adjustments
Balances as of March 31, 2016	$	(1,103)
Net translation loss of investments in foreign operations		(136)
Net gains related to hedges of investment in foreign operations		51
Net change in accumulated other comprehensive loss		(85)
Balances as of June 30, 2016	$	(1,188)
		Foreign
		Currency
		Translation
Six Months Ended June 30, 2016 (Millions), net of tax		Adjustments
Balances as of December 31, 2015	$	(1,156)
Net translation loss of investments in foreign operations		(33)
Net gains related to hedges of investment in foreign operations		1
Net change in accumulated other comprehensive loss		(32)
Balances as of June 30, 2016	$	(1,188)

The following table shows the tax impact for the three and six months endedJune 30, for the changes in Foreign Currency Translation Adjustments presented above:

		Tax (benefit) expense
		Three Months Ended				Six Months Ended
		June 30,				June 30,
(Millions)		2017		2016		2017		2016
Foreign currency translation adjustments (a)	$	(27)	$	79	$	(345)	$	49
Total tax impact	$	(27)	$	79	$	(345)	$	49

Includes $289 million of tax benefits recognized in the six months ended June 30,2017 (Refer to Note 8).

No amounts were reclassified out of AOCI into the Consolidated Statements of Income and Retained Earnings for the three and six months endedJune 30, 2017and 2016.

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Income Taxes

6 Months Ended

Jun. 30, 2017

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

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 effective tax rate was (9.6) percent and 12.3 percent for the three months ended June 30, 2017 and 2016 respectively, and 1.7 percent and 11.5 percent for the six months ended June 30, 2017 and 2016 respectively.The changes in tax rates primarily reflected the geographic mix of expenses in the United States attracting a 35 percent statutory benefit and foreign earnings taxed at lower rates, which are indefinitely reinvested.

The tax rate in each of the periods reflects the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States. Credco’s provision for income taxes for interim financial periods is not based on an estimated annual effective rate due to volatility in certain components of revenues and expenses that prevents Credco from projecting a reliable estimate of full year pretax income. A discrete calculation of the provision for income taxes isrecorded for each interim period.

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 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 tax years 2008 through 2014.

During the six months endedJune 30,2017, Credco’s unrecognized tax benefits decreased by $288 million. The decrease was primarily due to the resolution with the IRS of an uncertain tax position in January 2017, and resulted in the recognition of $289 million in shareholder’s equity, specifically within AOCI. Interest relating to unrecognized tax benefits also decreased by approximately $42 million due to the resolution of this uncertain tax position. The decrease in accrued interest had no impact on either the income tax provision or AOCI.

Credco believes it is reasonably possible that its unrecognized tax benefits could decrease by an immaterial amount within the next 12 months 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 attribution of taxable income to a particular jurisdiction or jurisdictions. The resolution of such items would not have a material impact on Credco’s effective tax rate.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Summary Of Significant Accounting Policies [Abstract]

Basis of Presentation

The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These accounting estimates reflect the best judgment of management, but actual results could differ.

Derivatives And Hedging Activities Policy [Abstract]

Derivatives

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.

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.

Variable Interest Entity [Abstract]

Variable Interest Entity

Credco has established a Variable Interest Entity (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.

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Card Member Receivables and Loans (Tables)

6 Months Ended

Jun. 30, 2017

Accounts Receivable And Loans Tables [Abstract]

Card Member receivables detail

Card Member receivables as of June 30, 2017 and December 31, 2016 consisted of

(Millions)		2017		2016
U.S. Consumer Services	$	5,601	$	3,518
International Consumer and Network Services (a)		1,579		1,526
Global Commercial Services (b)		14,696		13,174
Card Member receivables (c)		21,876		18,218
Less: Reserve for losses		146		110
Card Member receivables, net (d)	$	21,730	$	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 June 30, 2017 and December 31, 2016, respectively.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member loans detail

Card Member loans as of June 30, 2017 and December 31, 2016 consisted of:

(Millions)		2017		2016
International Consumer and Network Services (a)	$	471	$	476
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	466	$	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 June 30, 2017 and December 31, 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	$	5,561	$	15	$	7	$	18	$	5,601
	International Consumer and Network Services		1,560		7		4		8		1,579
	Global Commercial Services
	Global Small Business Services		1,615		7		3		8		1,633
	Global Corporate Payments (a)		(b)		(b)		(b)		110		13,063
Card Member Loans:
	International Consumer and Network Services	$	467	$	1	$	1	$	2	$	471
					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 receivablesin 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 six months endedJune 30:

		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	0.67	%	0.71	%	0.67	%	0.58	%
	International Consumer and Network Services	1.55	%	1.20	%	2.13	%	1.39	%
	Global Small Business Services	1.03	%	1.10	%	1.18	%	0.82	%
Card Member Loans:
	International Consumer and Network Services	1.28	%	0.85	%	1.40	%	0.70	%
		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	%	0.84	%	0.06	%	0.72	%

• 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)

6 Months Ended

Jun. 30, 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 six months endedJune 30:

(Millions)		2017		2016
Balance, January 1		$	110	$	114
	Provisions		113		64
	Other credits (a)		33		6
	Net write-offs (b)		(94)		(75)
	Other debits (c)		(16)		(10)
Balance, June 30		$	146	$	99

• Primarily reserve balances related to participation interests in Card Member receivables purchased from affiliates. Participation interests in Card Member receivables purchased totaled $6.0 billion and $1.1billion for the six months endedJune 30, 2017 and 2016, respectively.
• Net of recoveries of $45 million and $47 million for the six months endedJune 30, 2017 and 2016, respectively.
• Primarily reserve balances related to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold totaled $2.6 billion and $2.3 billion for the six months endedJune 30,2017 and 2016, respectively.

Changes in the Card Member loans reserve for losses

The following table presents changes in the Card Member loans reserve for losses for the six months endedJune 30:

(Millions)		2017		2016
Balance, January 1		$	5	$	4
	Provisions		3		4
	Net write-offs(a)		(3)		(3)
Balance, June 30		$	5	$	5

Net of recoveries of $1.0 million for both the six months endedJune 30, 2017 and 2016.

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2017 and December 31, 2016:

		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			4		151		104		1
Total derivatives designated as hedging instruments			4		173		104		70
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		32		128		36		28
Total derivatives, gross			36		301		140		98
Less: Cash collateral netting (b)(c)			―		(2)		―		(49)
Derivative asset and derivative liability netting (d)			(11)		(27)		(11)		(27)
Total derivatives, net (e)		$	25	$	272	$	129	$	22

• Effective January 2017, the Central Clearing Party changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as opposed to collateral. As ofJune 30,2017, centrally cleared derivatives are fully collateralized.
• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivatives executed with the same counterparty under an enforceable master netting arrangement.
• Credco held no non-cash collateral as of June 30,2017 and December 31, 2016, respectively. To mitigate counterparty credit risk related to derivatives, Credco may accept non-cash collateral from its derivatives counterparties. Additionally, Credco posted $152 million and $144 million as of June 30, 2017 and December 31,2016, 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.
• Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and net derivative liabilities are presented within Other assets and Accrued interest and Other liabilities, respectively, on Credco’s Consolidated Balance Sheets.

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 three and six months endedJune 30:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(Millions)		2017		2016		2017		2016
Interest rate derivative contracts	$	20	$	63	$	(30)	$	205
Hedged items		(37)		(55)		(8)		(201)
Net hedge ineffectiveness	$	(17)	$	8	$	(38)	$	4

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Fair Values (Tables)

6 Months Ended

Jun. 30, 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 of June 30, 2017 and December 31, 2016:

(Millions)		2017		2016
Assets:
Derivatives (a)	$	36	$	301
Total assets		36		301
Liabilities:
Derivatives (a)		140		98
Total liabilities	$	140	$	98

Refer to Note 4 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 values of Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of June 30, 2017 and December 31, 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
			Cash and cash equivalents(a)	$	1.3	$	1.3	$	0.2	$	1.1	$	―
			Other financial assets		23.4		23.4		―		23.4		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.5		0.5		―		―		0.5
			Loans to affiliates and other		10.0		10.0		―		7.1		2.9
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			7.4		7.4		―		7.4		―
	Financial liabilities carried at other than fair value
			Long-term debt	$	25.2	$	25.4	$	―	$	25.4	$	―

				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
			Cash and cash equivalents(a)	$	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	$	―

Level 1 amounts reflect interest-bearing deposits in banks and Level 2 amount reflects time deposits and short-term investments.

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Changes in Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 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 and six months endedJune 30, 2017 and 2016 were as follows:

		Foreign
		Currency
		Translation
Three Months Ended June 30, 2017 (Millions), net of tax		Adjustments
Balances as of March 31, 2017	$	(955)
Net translation gain of investments in foreign operations		54
Net losses related to hedges of investment in foreign operations		(40)
Net change in accumulated other comprehensive loss		14
Balances as of June 30, 2017	$	(941)
		Foreign
		Currency
		Translation
Six Months Ended June 30, 2017 (Millions), net of tax		Adjustments
Balances as of December 31, 2016	$	(1,263)
Net translation gain of investments in foreign operations(a)		490
Net losses related to hedges of investment in foreign operations		(168)
Net change in accumulated other comprehensive loss		322
Balances as of June 30, 2017	$	(941)
(a) Includes $289 million of recognized tax benefits (Refer to Note 8).
		Foreign
		Currency
		Translation
Three Months Ended June 30, 2016 (Millions), net of tax		Adjustments
Balances as of March 31, 2016	$	(1,103)
Net translation loss of investments in foreign operations		(136)
Net gains related to hedges of investment in foreign operations		51
Net change in accumulated other comprehensive loss		(85)
Balances as of June 30, 2016	$	(1,188)
		Foreign
		Currency
		Translation
Six Months Ended June 30, 2016 (Millions), net of tax		Adjustments
Balances as of December 31, 2015	$	(1,156)
Net translation loss of investments in foreign operations		(33)
Net gains related to hedges of investment in foreign operations		1
Net change in accumulated other comprehensive loss		(32)
Balances as of June 30, 2016	$	(1,188)

Accumulated Other Comprehensive Loss Income - Tax Effect

The following table shows the tax impact for the three and six months endedJune 30, for the changes in Foreign Currency Translation Adjustments presented above:

		Tax (benefit) expense
		Three Months Ended				Six Months Ended
		June 30,				June 30,
(Millions)		2017		2016		2017		2016
Foreign currency translation adjustments (a)	$	(27)	$	79	$	(345)	$	49
Total tax impact	$	(27)	$	79	$	(345)	$	49

Includes $289 million of tax benefits recognized in the six months ended June 30,2017 (Refer to Note 8).

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Card Member Receivables and Loans (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Accounts Receivable [Abstract]
Card Member receivables	$ 21,876	$ 18,218
Less: Reserve for losses	146	110	$ 99	$ 114
Card Member receivables, net	21,730	18,108
U.S. Consumer Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	5,601	3,518
Global Commercial Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	14,696	13,174
International Consumer and Network Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	$ 1,579	$ 1,526

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Card Member Receivables and Loans (Details 1) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Card Member loans
Less: Reserve for losses	$ 5	$ 5	$ 5	$ 4
Card Member loans, less reserves	466	471
International Consumer and Network Services [Member]
Card Member loans
Card Member loans	471	476
Less: Reserve for losses	5	5
Card Member loans, less reserves	$ 466	$ 471

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Card Member Receivables and Loans (Details 2) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
U.S. Consumer Services [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	$ 5,561	$ 3,501
Total aging	5,601	3,518
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	15	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	7	3
U.S. Consumer Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	18	5
International Consumer and Network Services [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	1,560	1,506
Total aging	1,579	1,526
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	7	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	4	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	8	10
International Consumer and Network Services [Member] | Card Member Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	467	472
Total aging	471	476
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 Corporate Payments [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total aging	13,063	11,956
Global Corporate Payments [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	110	108
Global Small Business Services [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	1,615	1,202
Total aging	1,633	1,218
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	7	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	3	2
Global Small Business Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	$ 8	$ 5

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Card Member Receivables and Loans (Details 3)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
U.S. Consumer Services [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Receivables and Loans
Net Write-off Rate	0.67%	0.67%
30+ Days Past Due as a % of Total	0.71%	0.58%
International Consumer and Network Services [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Receivables and Loans
Net Write-off Rate	1.55%	2.13%
30+ Days Past Due as a % of Total	1.20%	1.39%
International Consumer and Network Services [Member] | Card Member Loans [Member]
Credit Quality Indicator for Receivables and Loans
Net Write-off Rate	1.28%	1.40%
30+ Days Past Due as a % of Total	0.85%	0.70%
Global Corporate Payments [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Receivables and Loans
Net Loss Ratio as a % of Charge Volume	0.08%	0.06%
90+ Days Past Billing as a % of Receivables	0.84%	0.72%
Global Small Business Services [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Receivables and Loans
Net Write-off Rate	1.03%	1.18%
30+ Days Past Due as a % of Total	1.10%	0.82%

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Card Member Receivables and Loans (Details Textuals) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net volume of Card Member receivables purchased	$ 124,000.0	$ 109,000.0
Net volume of Card Member loans purchased	2,100.0	$ 2,000.0
Deferred discount revenue on Card Member receivable	43.0		$ 27.0
RFC VIII [Member]
Related Party Transaction [Line Items]
Participation Interests In Card Member Receivables Purchased	$ 6,500.0		$ 4,000.0

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Reserves (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Changes in the Card Member receivable reserve for losses
Balance, January 1	$ 110	$ 114
Provisions	113	64
Other credits	33	6
Net write-offs	(94)	(75)
Other debits	(16)	(10)
Balance, June 30	$ 146	$ 99

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Reserves (Details 1) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Changes in the Card Member loans reserve for losses
Balance, January 1	$ 5	$ 4
Provisions	3	4
Net write-offs	(3)	(3)
Balance, June 30	$ 5	$ 5

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Reserves (Details Textuals) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Reserves For Losses (Textuals) [Abstract]
Participation interests in Card Member receivables purchased from affiliates	$ 6,000.0	$ 1,100.0
Allowance for Card Member Receivables, Recoveries of Bad Debts	45.0	47.0
Allowance for Card Member Loans, Recoveries of Bad Debts	1.0	1.0
Participation Interest in Card Member Receivables Sold to Affiliates	$ 2,600.0	$ 2,300.0

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Derivatives and Hedging Activities (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	$ 36	$ 301
Cash collateral netting	0	(2)
Derivative asset and liability netting	(11)	(27)
Total derivatives assets,net	25	272
Other Assets [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	4	173
Other Assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	32	128
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	22
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	4	151
Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liability	140	98
Cash collateral netting	0	(49)
Derivative asset and liability netting	(11)	(27)
Total derivatives liabilities, net	129	22
Other Liabilities [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liability	104	70
Other Liabilities [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liability	36	28
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 liability	0	69
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 liability	$ 104	$ 1

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Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contract [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Derivative contract	$ 20	$ 63	$ (30)	$ 205
Hedged item	(37)	(55)	(8)	(201)
Net hedge ineffectiveness	$ (17)	$ 8	$ (38)	$ 4

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Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Derivatives And Hedging Activities Textuals [Abstract]
Net reduction in interest expense on long term debt	$ 17	$ 34	$ 39	$ 68
Derivative [Line Items]
Margin on interest rate swap not netted	152		152		$ 144
Derivative Instruments, Gain (Loss) [Line Items]
Net hedge ineffectiveness	0	0	0	0
Fair Value Hedging [Member]
Derivative [Line Items]
Notional amount of long-term debt	16,900		16,900		14,800
Net Investment Hedging [Member]
Derivative [Line Items]
Effection portion of loss (gain) on hedges	40	(51)	168	(1)
Ineffectiveness reclassified from AOCI into income	0	0	0	0
Other expense [Member]
Derivative [Line Items]
Loss (gain) in Changes of Fair Value of Derivatives not designated as hedges	(6)	$ 1	(10)	$ 2
Individually Significant Counterparties [Member]
Offsetting Assets [Line Items]
Total derivatives assets,net	$ 0		$ 0		$ 0

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Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Assets [Abstract]
Derivatives	$ 36	$ 301
Total assets	36	301
Liabilities [Abstract]
Derivatives	140	98
Total liabilities	$ 140	$ 98

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Fair Value (Details 1) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	$ 466	$ 471
Loans to affiliates and other	10,033	10,659
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	25,171	20,512
Carrying Value [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	1,300	1,200
Other financial assets	23,400	19,300
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	500	500
Loans to affiliates and other	10,000	10,700
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	7,400	9,100
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	25,200	20,500
Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	1,300	1,200
Other financial assets	23,400	19,300
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	500	500
Loans to affiliates and other	10,000	10,700
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	7,400	9,100
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	25,400	20,700
Level 1 [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	200	200
Other financial assets	0	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]
Long-term Debt	0	0
Level 2 [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	1,100	1,000
Other financial assets	23,400	19,300
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	0	0
Loans to affiliates and other	7,100	7,900
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	7,400	9,100
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	25,400	20,700
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	500	500
Loans to affiliates and other	2,900	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]
Long-term Debt	$ 0	$ 0

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Fair Value (Details Textuals) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value for impairment	$ 0	$ 0

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Variable Interest Entity (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Total assets	$ 35,361	$ 31,936
Total liabilities	32,714	29,727
Variable Interest Entity, Primary Beneficiary [Member] | American Express Canada Credit Corporation Member [Member]
Variable Interest Entity [Line Items]
Total assets	1,800	1,700
Total liabilities	1,700	1,700
Liabilities eliminated in consolidation	$ 1,300	$ 1,300

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Changes In Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Changes in other comprehensive income
Balances as of start of period			$ (1,263)
Balances as of end of period	$ (941)	$ (1,188)	(941)	$ (1,188)
Foreign Currency Translation Adjustment [Member]
Changes in other comprehensive income
Balances as of start of period	(955)	(1,103)	(1,263)	(1,156)
Net translation gain (loss) of investment in foreign operations	54	(136)	490	(33)
Net (losses) gain related to hedges of investment in foreign operations	(40)	51	(168)	1
Net change in accumulated other comprehensive loss	14	(85)	322	(32)
Balances as of end of period	$ (941)	$ (1,188)	$ (941)	$ (1,188)

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Changes in Accumulated Other Comprehensive Income (Loss) (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Comprehensive Income (Loss), Tax [Abstract]
Foreign currency translation adjustments	$ (27)	$ 79	$ (345)	$ 49
Total tax impact	$ (27)	$ 79	(345)	$ 49
Tax Benefits Recognized in the period			$ 288

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Changes in Accumulated Other Comprehensive Income (Loss) (Details Textuals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Loss Income (Textuals) [Abstract]
Amount of gain loss reclassified from accumulated other comprehensive income to income	$ 0	$ 0	$ 0	$ 0

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Income Taxes (Details Textuals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Taxes (Textuals) [Abstract]
Decrease in Unrecognized tax benefits, amounts recorded to equity	$ 289		$ 289
Unrecognized tax benefits income tax penalties and interest accrued	$ (42)		$ (42)
Effective tax rate	(9.60%)	12.30%	1.70%	11.50%
Tax Benefits Recognized in the period			$ 288
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