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 September 30, 2018

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 every Interactive Data File required to be submitted 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 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 November 2, 2018
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 Nine Months ended September 30, 2018 and 2017	1
			Consolidated Statements of Comprehensive Income – Three and Nine Months ended September 30, 2018 and 2017	2
			Consolidated Balance Sheets – September 30, 2018 and December 31, 2017	3
			Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2018 and 2017	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						Nine Months Ended
	September 30,						September 30,
(Millions)	2018			2017			2018			2017
Revenues
Discount revenue earned from purchased Card Member receivables and Card Member loans	$	271		$	199		$	733		$	558
Interest income from affiliates and other		99			75			278			198
Finance revenue		16			12			44			35
Total revenues		386			286			1,055			791
Expenses
Provisions for losses		68			60			190			176
Interest expense		165			139			469			359
Interest expense to affiliates		56			17			125			39
Other, net		(10	)		(15	)		(37	)		14
Total expenses		279			201			747			588
Pretax income		107			85			308			203
Income tax (benefit) provision		(2	)		13			(18	)		15
Net income		109			72			326			188
Retained earnings at beginning of period		2,925			3,427			2,708			3,311
Retained earnings at end of period	$	3,034		$	3,499		$	3,034		$	3,499

See Notes to Consolidated Financial Statements.

1

AMERICAN EXPRESS CREDIT CORPORATIONCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(Millions)	2018			2017		2018			2017
Net income	$	109		$	72	$	326		$	188
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax		(16	)		51		(27	)		373
Other comprehensive (loss) income		(16	)		51		(27	)		373
Comprehensive income	$	93		$	123	$	299		$	561

See Notes to Consolidated Financial Statements.

2

AMERICAN EXPRESS CREDIT CORPORATIONCONSOLIDATED BALANCE SHEETS (Unaudited)

	September 30,			December 31,
(Millions, except share data)	2018			2017
Assets
Cash and cash equivalents	$	200		$	196
Card Member receivables, less reserves: 2018, $183; 2017, $145		25,711			20,131
Card Member loans, less reserves: 2018, $5; 2017, $5		585			556
Loans to affiliates and other		13,579			14,527
Due from affiliates		17			189
Other assets		319			290
Total assets	$	40,411		$	35,889
Liabilities and Shareholder’s Equity
Liabilities
Short-term debt	$	159		$	1,308
Short-term debt to affiliates		12,850			5,997
Long-term debt		21,384			24,153
Long-term debt to affiliates		268			270
Total debt		34,661			31,728
Due to affiliates		3,345			1,988
Accrued interest and other liabilities		235			302
Total liabilities	$	38,241		$	34,018
Shareholder’s Equity
Common stock, $0.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares as of September 30, 2018 and December 31, 2017		―			―
Additional paid-in capital		161			161
Retained earnings		3,034			2,708
Accumulated other comprehensive loss
Foreign currency translation adjustments, net of tax of: 2018, $10; 2017, $17		(1,025	)		(998	)
Total accumulated other comprehensive loss		(1,025	)		(998	)
Total shareholder’s equity		2,170			1,871
Total liabilities and shareholder’s equity	$	40,411		$	35,889

See Notes to Consolidated Financial Statements.

3

AMERICAN EXPRESS CREDIT CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months Ended September 30 (Millions)	2018			2017
Cash Flows from Operating Activities
Net income	$	326		$	188
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for losses		190			176
Amortization of underwriting expense		19			20
Deferred taxes		(40	)		(65	)
Changes in operating assets and liabilities:
Interest, taxes and other amounts due to/from affiliates		(86	)		299
Other operating assets and liabilities		144			(490	)
Net cash provided by operating activities		553			128
Cash Flows from Investing Activities
Net increase in Card Member receivables and Card Member loans		(5,991	)		(4,063	)
Net decrease in loans to affiliates and other		766			1,058
Net increase (decrease) in due to/from affiliates		1,632			(685	)
Net cash used in investing activities		(3,593	)		(3,690	)
Cash Flows from Financing Activities
Net decrease in short-term debt		(1,149	)		(2,656	)
Net increase in short-term debt to affiliates		6,841			2,701
Proceeds from long-term debt		―			8,443
Principal payments of long-term debt		(2,647	)		(4,900	)
Net cash provided by financing activities		3,045			3,588
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash		(3	)		104
Net increase in cash, cash equivalents and restricted cash		2			130
Cash, cash equivalents and restricted cash at beginning of period		296			1,211
Cash, cash equivalents and restricted cash at end of period	$	298		$	1,341

Supplementary cash flow information
Cash, cash equivalents and restricted cash reconciliation		Sep-18		Dec-17		Sep-17		Dec-16
Cash and cash equivalents per Consolidated Balance Sheets	$	200	$	196	$	1,341	$	1,211
Restricted cash included in Other assets per Consolidated Balance Sheets (a)		98		100		―		―
Total cash, cash equivalents and restricted cash	$	298	$	296	$	1,341	$	1,211

(a) Represents cash deposited with Amex Bank of Canada relating to the purchase of Card Member receivables and the collateralized loan arrangement for transfer of Card Member loans.

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 certain 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.

Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend 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 Card Member 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, 2017. 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 June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance for the recognition of credit losses on financial instruments, effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The guidance also requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. Credco does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the CECL model will alter the assumptions used in estimating credit losses on Card Member receivables and loans, and may result in material increases to Credco’s credit reserves as the new guidance involves earlier recognition of expected losses for the life of the assets. American Express has established an enterprise-wide, cross-discipline governance structure to implement the new standard, and continues to identify and conclude on key interpretive issues along with evaluating American Express’ existing credit loss forecasting models and processes in relation to the new guidance to determine what modifications may be required.

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

Recently Adopted Accounting Standards

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

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

In August 2017, the FASB issued new accounting guidance providing targeted improvements to the accounting for hedging activities, effective January 1, 2019, with early adoption permitted in any interim period or fiscal year before the effective date. The guidance introduces a number of amendments, several of which are optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. Effective January 1, 2018, Credco adopted the guidance with no material impact on its financial position, results of operations and cash flows, along with associated changes to its accounting policies, business processes and internal controls in support of the new guidance. Such changes were not material.

6

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

Other Information

Effective for the second quarter of 2018, American Express realigned its reportable operating segments to reflect the organizational changes announced during the first quarter of 2018 which combined its U.S. and International consumer businesses into a global consumer services organization, among other changes. To enhance the comparability and usefulness of Credco’s financial statements with that of American Express, Credco has also combined its U.S. and International consumer Card Member receivables and Card Member loans in Note 2 for the periods presented. This change did not have any impact on Credco’s underlying assumptions or judgments with respect to reserves for losses or credit performance.

2.   Card Member Receivables and Card Member Loans

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

Card Member receivables as of September 30, 2018 and December 31, 2017 consisted of:

(Millions)	2018		2017
Global Consumer Services Group (a)	$	8,762	$	5,384
Global Commercial Services (b)		17,132		14,892
Card Member receivables (c)		25,894		20,276
Less: Reserve for losses		183		145
Card Member receivables, net (d)	$	25,711	$	20,131

(a) Comprised of U.S. and International Consumer Services.

(b) Comprised of Corporate and Small Business Services.

(c) Net of deferred discount revenue totaling $69 million and $43 million as of September 30, 2018 and December 31, 2017, respectively.

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

Card Member loans as of September 30, 2018 and December 31, 2017 consisted of:

(Millions)	2018		2017
Global Consumer Services Group (a)	$	590	$	561
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	585	$	556

(a) Comprised of International Consumer Services.

(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 Card Member 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 September 30, 2018 and December 31, 2017:

2018 (Millions)	Current			30-59 Days Past Due		60-89 Days Past Due	90+ Days Past Due		Total
Card Member Receivables:
Global Consumer Services Group	$	8,708	$	18	$	12	$	24	$	8,762
Global Commercial Services
Global Small Business Services		1,953		6		4		7		1,970
Global Corporate Payments (a)	(b)		(b)		(b)			118		15,162
Card Member Loans:
Global Consumer Services Group	$	586	$	1	$	1	$	2	$	590

2017 (Millions)		Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Receivables:
Global Consumer Services Group	$	5,336	$	18	$	11	$	19	$	5,384
Global Commercial Services
Global Small Business Services		1,397		5		4		6		1,412
Global Corporate Payments (a)	(b)		(b)		(b)			112		13,480
Card Member Loans:
Global Consumer Services Group	$	557	$	1	$	1	$	2	$	561

(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 Card Member Loans

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

	2018					2017
			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:
Global Consumer Services Group	1.24	%		0.62	%		0.99	%		0.88	%
Global Small Business Services	1.51	%		0.86	%		1.01	%		1.10	%
Card Member Loans:
Global Consumer Services Group	0.93	%		0.68	%		1.41	%		0.80	%

2018

2017

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

0.07

%

0.78

%

0.07

%

0.89

%

(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 Card Member 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 nine months ended September 30:

(Millions)	2018			2017
Balance, January 1	$	145		$	110
Provisions		186			171
Other credits (a)		51			35
Net write-offs (b)		(173	)		(142	)
Other debits (c)		(26	)		(16	)
Balance, September 30	$	183		$	158

(a) Primarily reserve balances related to new groups of, and participation interests in, Card Member receivables purchased from affiliates, totaling $9.7 billion and $6.0 billion for the nine months ended September 30, 2018 and 2017, respectively.

(b) Net of recoveries of $84 million and $70 million for the nine months ended September 30, 2018 and 2017, 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 $4.5 billion and $2.6 billion for the nine months ended September 30, 2018 and 2017, respectively.

Changes in Card Member Loans Reserve for Losses

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

(Millions)	2018			2017
Balance, January 1	$	5		$	5
Provisions		4			5
Net write-offs (a)		(4	)		(5	)
Balance, September 30	$	5		$	5

(a) Net of recoveries of $1.0 million for each of the nine months ended September 30, 2018 and 2017.

10

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

4.   Derivatives and Hedging Activities

Credco uses derivative financial instruments 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 Credco’s assessment of the credit risk of its derivative counterparties as of September 30, 2018 and December 31, 2017, 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 September 30, 2018 and December 31, 2017:

	Other Assets						Other Liabilities
	Fair Value						Fair Value
(Millions)	2018			2017			2018			2017
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)	$	―		$	―		$	―		$	―
Net investment hedges - Foreign exchange contracts		90			54			26			38
Total derivatives designated as hedging instruments		90			54			26			38
Derivatives not designated as hedging instruments:
Foreign exchange contracts		15			9			62			57
Total derivatives, gross		105			63			88			95
Less: Cash collateral netting (b)		―			―			―			―
Derivative asset and derivative liability netting (c)		(25	)		(26	)		(25	)		(26	)
Total derivatives, net	$	80		$	37		$	63		$	69

(a) For centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral. Accordingly, assets and liabilities are disclosed for centrally cleared derivatives, each net of variation margin.

(b) Credco posted $67 million and $115 million as of September 30, 2018 and December 31, 2017, 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.

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

A majority of Credco’s derivative assets and liabilities as of September 30, 2018 and December 31, 2017 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.

11

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

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 $14.5 billion and $16.2 billion of its fixed-rate debt obligations designated in fair value hedging relationships as of September 30, 2018 and December 31, 2017, respectively.

The following table represents the gains and losses associated with fair value hedges of Credco’s fixed-rate long-term debt:

	Gains (losses)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Millions)	2018			2017			2018			2017
	Interest Expense(a)			Other Expenses			Interest Expense(a)			Other Expenses
Fixed-rate long-term debt	$	(4	)	$	(11	)	$	123		$	(40	)
Derivatives designated as hedging instruments		2			20			(113	)		11
Total	$	(2	)	$	9		$	10		$	(29	)

(a) Credco adopted new accounting guidance providing targeted improvements to the accounting for hedging activities effective January 1, 2018. In compliance with the standard, amounts previously recorded in Other expenses have been prospectively recorded in Interest expense. Refer to Note 1 for additional information.

The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $14.2 billion and $16.0 billion as of September 30, 2018 and December 31, 2017, respectively, including offsetting amounts of $278 million and $155 million for the respective periods, related to the cumulative amount of fair value hedging adjustments.

Credco recognized a net increase of $23 million and a net reduction of $8 million in Interest expense on Long-term debt for the three months ended September 30, 2018 and 2017, respectively, and a net increase of $46 million and a net reduction of $47 million for the nine months ended September 30, 2018 and 2017, respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges.

Net Investment Hedges

The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, were losses of $3 million and $95 million for the three months ended September 30, 2018 and 2017, respectively and a gain of $59 million and a loss of $263 million for the nine months ended September 30, 2018 and 2017, respectively. No amounts associated with net investment hedges were reclassified from AOCI into income for the three and nine months ended September 30, 2018 and 2017.

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 net gains of $10 million and $8 million for the three months ended September 30, 2018 and 2017, respectively, and net gains of $40 million and $19 million for the nine months ended September 30, 2018 and 2017, respectively, and are recognized in Other expenses.

12

AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

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 September 30, 2018 and December 31, 2017:

(Millions)	2018		2017
Assets:
Derivatives, gross (a)	$	105	$	63
Total assets		105		63
Liabilities:
Derivatives, gross (a)		88		95
Total liabilities	$	88	$	95

(a) 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 value for Credco’s financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of September 30, 2018 and December 31, 2017. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2018 and December 31, 2017 and require management judgment. These figures may not be indicative of future fair values, nor can Credco’s fair value be estimated by aggregating the amounts presented.

	Carrying		Corresponding Fair Value Amount
2018 (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)	$	0.2	$	0.2	$	0.2	$	―	$	―
Other financial assets (b)		26.0		26.0		0.1		25.9		―
Financial assets carried at other than fair value
Card Member loans, net		0.6		0.6		―		―		0.6
Loans to affiliates and other		13.6		13.5		―		8.4		5.1
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value		15.7		15.7		―		15.7		―
Financial liabilities carried at other than fair value
Long-term debt		21.4		21.5		―		21.5		―
Long-term debt to affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

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AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

	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)	$	0.2	$	0.2	$	0.2	$	―	$	―
Other financial assets (b)		20.6		20.6		0.1		20.5		―
Financial assets carried at other than fair value
Card Member loans, net		0.6		0.6		―		―		0.6
Loans to affiliates and other		14.5		14.4		―		10.0		4.4
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value		8.6		8.6		―		8.6		―
Financial liabilities carried at other than fair value
Long-term debt		24.2		24.5		―		24.5		―
Long-term debt to affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

(a) Amounts reflect interest-bearing deposits.

(b) Level 1 amounts reflect interest-bearing restricted cash and Level 2 amounts primarily reflect Card Member receivables.

Nonrecurring Fair Value Measurements

During the nine months ended September 30, 2018 and during the year ended December 31, 2017, Credco did not have any assets that were measured at fair value due to impairment on a nonrecurring basis.

6.  Variable Interest Entity

Credco established a Variable Interest Entity, American Express Canada Credit Corporation (AECCC), primarily to issue notes in Canada under a medium-term note program and lend the proceeds to affiliates. The notes issued under the medium-term note 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.

As of September 30, 2018 and December 31, 2017, total assets of AECCC were $8 million and $466 million, respectively, and total liabilities were nil and $457 million, respectively, none of which were eliminated in consolidation. In March 2018, the funds lent by AECCC were repaid by the affiliates and used to satisfy the scheduled maturity of notes issued under the medium-term note program.

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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 nine months ended September 30, 2018 and 2017 were as follows:

Three Months Ended September 30, 2018 (Millions), net of tax	Foreign Currency Translation Adjustments
Balances as of June 30, 2018	$	(1,009	)
Net translation loss of investments in foreign operations		(13	)
Net losses related to hedges of investment in foreign operations		(3	)
Net change in accumulated other comprehensive loss		(16	)
Balances as of September 30, 2018	$	(1,025	)

Nine Months Ended September 30, 2018 (Millions), net of tax	Foreign Currency Translation Adjustments
Balances as of December 31, 2017	$	(998	)
Net translation loss of investments in foreign operations		(86	)
Net gains related to hedges of investment in foreign operations		59
Net change in accumulated other comprehensive loss		(27	)
Balances as of September 30, 2018	$	(1,025	)

Three Months Ended September 30, 2017 (Millions), net of tax	Foreign Currency Translation Adjustments
Balances as of June 30, 2017	$	(941	)
Net translation gain of investments in foreign operations		146
Net losses related to hedges of investment in foreign operations		(95	)
Net change in accumulated other comprehensive loss		51
Balances as of September 30, 2017	$	(890	)

Nine Months Ended September 30, 2017 (Millions), net of tax	Foreign Currency Translation Adjustments
Balances as of December 31, 2016	$	(1,263	)
Net translation gain of investments in foreign operations (a)		636
Net losses related to hedges of investment in foreign operations		(263	)
Net change in accumulated other comprehensive loss		373
Balances as of September 30, 2017	$	(890	)

(a) Includes $289 million of tax benefits recognized in the nine months ended September 30, 2017.

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AMERICAN EXPRESS CREDIT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

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

	Tax (benefit) expense
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Millions)	2018			2017			2018			2017
Foreign currency translation adjustments (a)	$	6		$	(7	)	$	(25	)	$	(252	)
Net investment hedges		(1	)		(57	)		18			(157	)
Total tax impact	$	5		$	(64	)	$	(7	)	$	(409	)

(a) Includes $289 million of tax benefits recognized in the nine months ended September 30, 2017.

No amounts were reclassified out of AOCI into the Consolidated Statements of Income and Retained Earnings for the three and nine months ended September 30, 2018 and 2017.

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 (1.9) percent and 15.3 percent for the three months ended September 30, 2018 and 2017, respectively, and (5.8) percent and 7.4 percent for the nine months ended September 30, 2018 and 2017, respectively. The changes in tax rates for both periods primarily reflect a reduction in the U.S. statutory corporate income tax rate from 35 percent to 21 percent effective January 1, 2018, as a result of the Tax Act. The tax rate for the nine months ended September 30, 2018 includes a $24 million discrete tax benefit that reduced the reported effective tax rate by 7.8 percent and is related to a revision to the provisional tax charge recorded in 2017 as a result of the Tax Act. The revision to the provisional tax charge results from additional analysis of the foreign withholding tax consequences of future cash dividends paid from non-U.S. subsidiaries. Credco is still analyzing the impacts of the Tax Act; therefore, the 2017 tax charge continues to be provisional.

The tax rate in each of the periods reflects the geographic mix of expenses in the United States that generates a tax benefit at the U.S. statutory rate and foreign earnings taxed at lower rates, and 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. American Express is currently under examination with the IRS for tax years 2008 through 2014.

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 certain 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.

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 third quarter reflect strong performance that continues the momentum from the first half of the year, as it progresses against its four strategic imperatives – expand its presence in the premium consumer space, build on its position in commercial payments, strengthen its global, integrated network and make American Express an essential part of its customers’ digital lives.

While American Express continues to see some headwinds from a rising interest rate environment, regulation in countries around the world and intense competition, it remains focused on delivering differentiated value to its merchants, customers and business partners and delivering appropriate returns to its shareholders.

Effective for the second quarter of 2018, American Express realigned its reportable operating segments to reflect the organizational changes announced during the first quarter of 2018, which combined its U.S. and International consumer businesses into a global consumer services organization, among other changes. To enhance the comparability and usefulness of Credco’s financial statements with that of American Express, Credco has also combined its U.S. and International consumer Card Member receivables and Card Member loans in Note 2 to the Consolidated Financial Statements for the periods presented. This change did not have any impact on Credco’s underlying assumptions or judgments with respect to reserves for losses or credit performance.

Results of Operations for the Nine Months Ended September 30, 2018 and 2017

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

Credco’s consolidated net income increased by $138 million to $326 million, as compared to net income of $188 million for the same period in 2017. The year-over-year increase in net income is driven by an increase in discount revenue earned from Card Member receivables and Card Member loans and higher interest income from affiliates and other, partially offset by higher interest expense.

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Table 1: Total Revenues Summary

Nine Months Ended September 30					Change
(Millions, except percentages)	2018		2017		2018 vs. 2017
Discount revenue earned from purchased Card Member receivables and Card Member loans	$	733	$	558	$	175	31	%
Interest income from affiliates and other		278		198		80	40
Finance revenue		44		35		9	26
Total revenues	$	1,055	$	791	$	264	33	%

Total revenues

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

Interest income increased, primarily due to higher interest rates and higher average loan balances.

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

Table 2: Total Expense Summary

Nine Months Ended September 30						Change
(Millions, except percentages)	2018			2017		2018 vs. 2017
Provisions for losses	$	190		$	176	$	14		8	%
Interest expense		469			359		110		31
Interest expense to affiliates		125			39		86		#
Other, net		(37	)		14		(51	)	#
Total expenses	$	747		$	588	$	159		27	%

# Denotes a variance greater than 100 percent

Total expenses

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

Interest expense increased, primarily due to higher LIBOR rates, partially offset by fair value hedge ineffectiveness gains previously reported in Other expense.

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

Other expenses decreased, primarily driven by a fair value hedge ineffectiveness loss of $29 million in the prior period, now reported in Interest expense and higher forward point gains of $21 million.

Income taxes

The effective tax rates were (1.9) percent and 15.3 percent for the three months ended September 30, 2018 and 2017, respectively, and (5.8) percent and 7.4 percent for the nine months ended September 30, 2018 and 2017, respectively. The changes in tax rates for both periods primarily reflect a reduction in the U.S. statutory corporate income tax rate from 35 percent to 21 percent effective January 1, 2018, as a result of the Tax Cuts and Jobs Act (the Tax Act). The tax rate for the nine month period ended September 30, 2018 includes a $24 million discrete tax benefit related to a revision to the provisional tax charge recorded in 2017. Refer to Note 8 to the Consolidated Financial Statements for additional information.

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Card Member Receivables and Card Member Loans

The net volume of Card Member receivables and Card Member loans purchased during the nine months ended September 30, 2018 and 2017 was approximately $216.8 billion and $192.3 billion, respectively.

As of September 30, 2018 and December 31, 2017, Credco owned $25.9 billion and $20.3 billion, respectively, of gross Card Member receivables. Card Member receivables represent amounts due on American Express charge card products and are recorded at the time they are purchased from the seller. Included in Card Member receivables are Credco Receivables Corporation’s (CRC) purchases of participation interests from RFC VIII in conjunction with TRS’ securitization program. As of September 30, 2018 and December 31, 2017, CRC owned approximately $7.5 billion and $4.1 billion, respectively, of such participation interests.

As of September 30, 2018 and December 31, 2017, Credco owned gross Card Member loans totaling $590 million and $561 million, respectively. These loans generally represent revolving amounts due on American Express lending card products.

The following table summarizes selected information related to the Card Member receivables portfolio as of September 30:

Table 3: Selected Information Related to Card Member Receivables

(Millions, except percentages and where indicated)	2018			2017
Total gross Card Member receivables (a)	$	25,894		$	22,508
Loss reserves ― Card Member receivables (a)	$	183		$	158
Loss reserves as a % of receivables		0.7	%		0.7	%
Average life of Card Member receivables (# in days) (b)		29			29

(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 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 September 30, 2018 and December 31, 2017 were as follows:

Table 4: Loans to Affiliates and Other

(Millions)	2018		2017
American Express Limited	$	3,847	$	3,847
American Express Services Europe Limited		2,843		2,747
American Express Australia Limited		1,706		1,616
American Express International, Inc.		1,232		1,180
Amex Bank of Canada		1,219		1,737
Amex Global Holdings C.V.		888		888
American Express Company (Mexico) S.A. de C.V.		859		812
American Express Bank (Mexico) S.A.		358		325
American Express International, Inc.– Branch – Singapore		352		124
Alpha Card S.C.R.L./C.V.B.A		118		138
American Express Saudi Arabia (C) JSC		81		34
American Express International (NZ), Inc.		71		80
Amex Funding Management (Europe) Limited		5		38
American Express Company		―		961
Total (a)	$	13,579	$	14,527

(a) As of September 30, 2018 and December 31, 2017, approximately $5.6 billion and $5.0 billion, respectively, were collateralized by the underlying Card Member receivables and Card Member loans transferred with recourse.

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Due from/to Affiliates

As of September 30, 2018 and December 31, 2017, amounts due from affiliates were $17 million and $189 million, respectively. As of September 30, 2018 and December 31, 2017, amounts due to affiliates were $3.3 billion and $2.0 billion, respectively. These amounts relate primarily to timing differences from the purchase of Card Member receivables, net of remittances from TRS, as well as from operating activities. As of both September 30, 2018 and December 31, 2017, due to affiliates also includes an amount pertaining to tax liability on account of the Tax Act.

Restricted Cash with Affiliates

As of September 30, 2018 and December 31, 2017, the amount of interest-bearing restricted cash was $98 million and $100 million, respectively, which represents cash deposited with Amex Bank of Canada relating to the purchase of Card Member receivables and the collateralized loan arrangement for transfer of Card Member loans. It is included under “Other assets” on the Consolidated Balance Sheets.

Short-term Debt to Affiliates

Short-term debt to affiliates consists primarily of interest-bearing master notes repayable on demand. Components of short-term debt to affiliates as of September 30, 2018 and December 31, 2017 were as follows:

Table 5: Short-term Debt to Affiliates

(Millions)	2018		2017
American Express Company	$	6,165	$	―
AE Exposure Management Limited		4,975		4,548
American Express Europe LLC		951		765
American Express Swiss Holdings GmbH		512		444
American Express Holdings Netherlands CV		192		192
Accertify, Inc.		55		48
Total	$	12,850	$	5,997

Long-term Debt to Affiliates

Long-term debt to affiliates represents an unsecured amount due to LB Luxembourg Two S.a.r.l amounting to $268 million and $270 million as of September 30, 2018 and December 31, 2017, respectively, payable by December 2020.

Service Fees to Affiliates

Credco’s affiliates do not explicitly charge Credco a service fee for the servicing of receivables purchased. Instead, Credco receives a lower discount rate on the receivables purchased than would be the case if servicing fees were charged. If a servicing fee had been charged by these affiliates from which Credco purchases receivables, fees to affiliates for servicing receivables would have been approximately $213 million and $176 million for the nine months ended September 30, 2018 and 2017, 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)	Positive
Fitch	F1	A	Stable
Moody’s	Prime-1	A2	Stable
S&P	A-2	A-	Stable

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

Short-term Funding Programs

Short-term borrowings, such as commercial paper, is defined as debt with original contractual maturity of twelve months or less. Credco’s issuance and sale of commercial paper is primarily utilized for working capital needs. The amount of short-term borrowings issued in the future will depend on Credco’s funding strategy, its needs and market conditions. As of September 30, 2018 and December 31, 2017, Credco had nil and $1.2 billion, respectively, of commercial paper outstanding. The average commercial paper outstanding was $0.2 billion and $1.1 billion for the nine months ended September 30, 2018 and the year ended December 31, 2017, respectively.

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Long-term Debt Programs

During 2018, Credco did not issue any unsecured debt securities. Long-term debt is raised through the offering of debt securities both in and outside the United States. Long-term debt is generally defined as any debt with original contractual maturity greater than twelve months. Credco had the following long-term debt outstanding as of September 30, 2018 and December 31, 2017:

Table 7: Long-Term Debt Outstanding

(Billions)	2018		2017
Long-term debt outstanding (a)	$	21.4	$	24.2
Average long-term debt (b)	$	23.4	$	24.3

(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 nine and twelve months ended September 30, 2018 and December 31, 2017, respectively.

Credco has the ability to issue debt securities under the shelf registration statement 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 September 30, 2018 and December 31, 2017, Credco had $21.7 billion and $23.9 billion of debt securities outstanding, respectively, issued under the SEC registration statement. Credco may redeem from time to time certain debt securities within 31 days prior to the original contractual maturity dates in accordance with the optional redemption provisions of those debt securities.

Credco has also established a program in Australia for the issuance of debt securities of up to approximately $4.4 billion (AUD $6 billion). During the nine months ended September 30, 2018, no notes were issued under this program. As of September 30, 2018 and December 31, 2017, the entire amount of approximately $4.4 billion and $4.7 billion, respectively, of notes was available for issuance under this program and there were no outstanding notes as of such dates.

Credco also established a medium-term note program in Canada provided for the issuance of notes by American Express Canada Credit Corporation (AECCC), an indirect wholly owned subsidiary of Credco. As of September 30, 2018 and December 31, 2017, AECCC had nil and $0.5 billion, respectively, 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 nine months ended September 30, 2018 and 2017, 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 September 30, 2018, Credco was in compliance with all restrictive covenants contained in its debt agreements.

Liquidity Management

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 in amounts sufficient to meet their expected future financial obligations and business requirements for liquidity for a period of at least twelve months in the event they are unable to raise new funds under their regular funding programs during a substantial weakening in economic conditions.

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The liquidity management strategy 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 September 30, 2018, Credco had cash and cash equivalents of approximately $0.2 billion. In addition to its actual holdings of cash and cash equivalents, Credco maintains access to additional liquidity, in the form of cash and cash equivalents held by certain affiliates, through intercompany loan agreements.

Committed Bank Credit Facility

Credco maintained a U.S. dollar denominated committed syndicated bank credit facility as of September 30, 2018 of $3.5 billion, which expires on October 16, 2020. As of September 30, 2018, no amounts were drawn on this facility. The capacity of the facility mainly served to further enhance Credco’s contingent funding resources. The availability of this facility is subject to Credco’s compliance with certain financial covenants that require maintenance of a 1.25 ratio of earnings to fixed charges. The ratio of earnings to fixed charges for Credco was 1.52 for the nine months ended September 30, 2018. The ratio of earnings to combined fixed charges and preferred stock dividends for American Express for the nine months ended September 30, 2018 was 3.83.

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.

24

Cautionary Note Regarding Forward-Looking Statements

Various statements have been made in this Quarterly Report on this Third Quarter 2018 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 in Credco’s Annual Report on Form 10-K for the year ended December 31, 2017 (the 2017 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 Card Member 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 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;

· 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 resulting from a failure in or breach of operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyber attacks, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;

· 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;

· Credco’s tax rate remaining in line with current expectations, which could be impacted by, among other things, Credco’s geographic mix of income, further changes in tax laws and regulation, unfavorable tax audits and other unanticipated tax items; and the impact of accounting changes; and

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

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 2017 Form 10-K. There are no material changes from the risk factors set forth in the 2017 Form 10-K. However, the risks and uncertainties that Credco faces are not limited to those set forth in the 2017 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 quarter ended September 30, 2018, approximately 28 visas were obtained from Iranian embassies and consulates around the world in connection with certain travel arrangements on behalf of clients. GBT had negligible gross revenues and net profits attributable to these transactions and intends to continue to engage in these activities on a limited basis so long as such activities are permitted under U.S. law.

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: November 2, 2018	By	/s/ David L. Yowan
		David L. Yowan
		Chief Executive Officer
Date: November 2, 2018	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

	Nine Months Ended		Years Ended December 31,
(Dollars in Millions)	September 30, 2018		2017		2016		2015		2014		2013
Earnings:
Pretax income	$	308	$	275	$	212	$	252	$	318	$	350
Interest expense including interest expense to affiliates		594		553		341		360		502		597
Total earnings	$	902	$	828	$	553	$	612	$	820	$	947
Fixed charges ― Interest expense including interest expense to affiliates	$	594	$	553	$	341	$	360	$	502	$	597
Ratio of earnings to fixed charges		1.52		1.50		1.62		1.70		1.63		1.59

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

	Nine Months Ended		Years Ended December 31,
(Dollars in Millions)	September 30, 2018		2017		2016		2015		2014		2013
Earnings:
Pretax income from continuing operations	$	6,291	$	7,425	$	8,042	$	7,938	$	8,991	$	7,888
Interest expense (a)		2,109		2,112		1,704		1,623		1,707		1,958
Other adjustments (b)		124		118		101		118		402		133
Total earnings	$	8,524	$	9,655	$	9,847	$	9,679	$	11,100	$	9,979
Fixed charges:
Interest expense	$	2,109	$	2,112	$	1,704	$	1,623	$	1,707	$	1,958
Other adjustments (c)		36		51		56		62		79		93
Total fixed charges	$	2,145	$	2,163	$	1,760	$	1,685	$	1,786	$	2,051
Preferred stock dividends (d)	$	78	$	219	$	80	$	62	$	―	$	―
Total fixed charges and preferred stock dividends	$	2,223	$	2,382	$	1,840	$	1,747	$	1,786	$	2,051
Ratio of earnings to fixed charges		3.97		4.46		5.59		5.74		6.22		4.87
Ratio of earnings to combined fixed charges and preferred stock dividends		3.83		4.05		5.35		5.54		6.22		4.87

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

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

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

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

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: November 2, 2018	/s/ David L. Yowan
	David L. Yowan
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Anderson Y. Lee, certify that:

1. I have reviewed this 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: November 2, 2018	/s/ Anderson Y. Lee
	Anderson Y. Lee
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

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

In connection with this Quarterly Report on Form 10-Q of American Express Credit Corporation (the “Company”) for the quarterly period ended September 30, 2018, 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:   November 2, 2018

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-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 September 30, 2018, 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:   November 2, 2018

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-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	9 Months Ended
	Sep. 30, 2018	Nov. 02, 2018
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	Sep. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Discount revenue earned from purchased Card Member receivables and Card Member loans	$ 271	$ 199	$ 733	$ 558
Interest income from affiliates and other	99	75	278	198
Finance revenue	16	12	44	35
Total revenues	386	286	1,055	791
Expenses
Provisions for losses	68	60	190	176
Interest expense	165	139	469	359
Interest expense to affiliates	56	17	125	39
Other, net	(10)	(15)	(37)	14
Total expenses	279	201	747	588
Pretax income	107	85	308	203
Income tax (benefit) provision	(2)	13	(18)	15
Net income	109	72	326	188
Retained earnings at beginning of period	2,925	3,427	2,708	3,311
Retained earnings at end of period	$ 3,034	$ 3,499	$ 3,034	$ 3,499

XML

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Consolidated Statement of Comprehensive Income [Abstract]
Net income	$ 109	$ 72	$ 326	$ 188
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	(16)	51	(27)	373
Other comprehensive (loss) income	(16)	51	(27)	373
Comprehensive income	$ 93	$ 123	$ 299	$ 561

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 200	$ 196
Card Member receivables, less reserves	25,711	20,131
Card Member loans, less reserves	585	556
Loans to affiliates and other	13,579	14,527
Due from affiliates	17	189
Other assets	319	290
Total assets	40,411	35,889
Liabilities
Short-term debt	159	1,308
Short-term debt to affiliates	12,850	5,997
Long-term debt	21,384	24,153
Long-term debt to affiliates	268	270
Total debt	34,661	31,728
Due to affiliates	3,345	1,988
Accrued interest and other liabilities	235	302
Total liabilities	38,241	34,018
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	3,034	2,708
Accumulated other comprehensive loss:
Foreign currency translation adjustments, net of tax	(1,025)	(998)
Total accumulated other comprehensive loss	(1,025)	(998)
Total shareholder's equity	2,170	1,871
Total liabilities and shareholder's equity	$ 40,411	$ 35,889

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Assets
Card Member receivables, reserves	$ 183	$ 145
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	$ 10	$ 17

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows from Operating Activities
Net income	$ 326	$ 188
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for losses	190	176
Amortization of underwriting expense	19	20
Deferred taxes	(40)	(65)
Changes in operating assets and liabilities:
Interest, taxes and other amounts due to/from affiliates	(86)	299
Other operating assets and liabilities	144	(490)
Net cash provided by operating activities	553	128
Cash Flows from Investing Activities
Net increase in Card Member receivables and Card Member loans	(5,991)	(4,063)
Net decrease in loans to affiliates and other	766	1,058
Net increase (decrease) in due to/from affiliates	1,632	(685)
Net cash used in investing activities	(3,593)	(3,690)
Cash Flows from Financing Activities
Net decrease in short-term debt	(1,149)	(2,656)
Net increase in short-term debt to affiliates	6,841	2,701
Proceeds from long-term debt	0	8,443
Principal payments of long-term debt	(2,647)	(4,900)
Net cash provided by financing activities	3,045	3,588
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash	(3)	104
Net increase in cash, cash equivalents and restricted cash	2	130
Cash, cash equivalents and restricted cash at beginning of period	296	1,211
Cash, cash equivalents and restricted cash at end of period	$ 298	$ 1,341

XML

Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Statement of Cash Flows [Abstract]
Cash and cash equivalents per Consolidated Balance Sheets	$ 200	$ 196	$ 1,341	$ 1,211
Restricted cash included in Other assets per Consolidated Balance Sheets	98	100	0	0	[1]
Total Cash, cash equivalents and restricted cash	$ 298	$ 296	$ 1,341	$ 1,211

[1] R epresents cash deposited with Amex Bank of Canada relating to the purchase of Card Member receivables and the collateralized loan arrangement for transfer of Card Member loans .

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2018

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 certain 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.

Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend 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 Card Member 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, 2017. 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 June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance for the recognition of credit losses on financial instruments, effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The guidance also requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. Credco does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the CECL model will alter the assumptions used in estimating credit losses on Card Member receivables and loans, and may result in material increases to Credco’s credit reserves as the new guidance involves earlier recognition of expected losses for the life of the assets. American Express has established anenterprise-wide, cross-discipline governance structure to implement the new standard,and continues to identify and conclude on key interpretive issues along withevaluatingAmerican Express’ existing credit loss forecasting models and processes in relation to the new guidance to determine what modifications may be required.

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

Recently Adopted Accounting Standards

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

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

In August 2017, the FASB issued new accounting guidance providing targeted improvements to the accounting for hedging activities, effective January 1, 2019, with early adoption permitted in any interim period or fiscal year before the effective date. The guidance introduces a number of amendments, several of which are optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. Effective January 1, 2018, Credcoadopted the guidance with no material impact on its financial position, results of operations and cash flows, along with associated changes to its accounting policies, business processes and internal controls in support of the new guidance. Such changes were not material.

Other Information

Effective for the second quarter of 2018, American Express realigned its reportable operating segments to reflect the organizational changes announced during the first quarter of 2018 which combined its U.S. and International consumer businesses into a global consumer services organization, among other changes. To enhance the comparability and usefulness of Credco’s financial statements with that of American Express, Credco has also combined its U.S. and International consumer Card Member receivables and Card Member loans in Note 2 for the periods presented. This change did not have any impact on Credco’s underlying assumptions or judgments with respect to reserves for losses or credit performance.

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Card Member Receivables and Card Member Loans

9 Months Ended

Sep. 30, 2018

Loans Notes Trade And Other Receivables Disclosure [Abstract]

Card Member Receivables and Card Member Loans

2. Card Member Receivables and Card Member Loans

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

Card Member receivables as of September 30, 2018 and December 31, 2017 consisted of:

(Millions)		2018		2017
Global Consumer Services Group (a)	$	8,762	$	5,384
Global Commercial Services (b)		17,132		14,892
Card Member receivables (c)		25,894		20,276
Less: Reserve for losses		183		145
Card Member receivables, net (d)	$	25,711	$	20,131

• Comprised of U.S. and International Consumer Services.
• Comprised of Corporate and Small Business Services.
• Net of deferred discount revenue totaling $69 million and $43 million as of September 30, 2018 and December 31, 2017, respectively.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member loans as of September 30, 2018 and December 31, 2017 consisted of:

(Millions)		2018		2017
Global Consumer Services Group (a)	$	590	$	561
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	585	$	556

• Comprised of International Consumer Services.
• Card Member loans modified in a TDR program were immaterial.

Card Member Receivables and Card Member 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 September 30, 2018 and December 31, 2017:

				30-59		60-89
				Days		Days		90+ Days
2018(Millions)		Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
Global Consumer Services Group	$	8,708	$	18	$	12	$	24	$	8,762
Global Commercial Services
Global Small Business Services		1,953		6		4		7		1,970
Global Corporate Payments (a)		(b)		(b)		(b)		118		15,162
Card Member Loans:
Global Consumer Services Group	$	586	$	1	$	1	$	2	$	590
				30-59		60-89
				Days		Days		90+ Days
2017(Millions)		Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
Global Consumer Services Group	$	5,336	$	18	$	11	$	19	$	5,384
Global Commercial Services
Global Small Business Services		1,397		5		4		6		1,412
Global Corporate Payments (a)		(b)		(b)		(b)		112		13,480
Card Member Loans:
Global Consumer Services Group	$	557	$	1	$	1	$	2	$	561

• 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 Card Member Loans

The following tables present the key credit quality indicators as of or for the nine months endedSeptember 30:

	2018				2017
			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:
Global Consumer Services Group	1.24	%	0.62	%	0.99	%	0.88	%
Global Small Business Services	1.51	%	0.86	%	1.01	%	1.10	%
Card Member Loans:
Global Consumer Services Group	0.93	%	0.68	%	1.41	%	0.80	%
	2018				2017
	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	0.07	%	0.78	%	0.07	%	0.89	%

• 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

9 Months Ended

Sep. 30, 2018

Reserves for Losses [Abstract]

Reserves for Losses

3. Reserves for Losses

Reserves for losses relating to Card Member receivables and Card Member 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 nine months endedSeptember 30:

(Millions)		2018		2017
Balance, January 1		$	145	$	110
	Provisions		186		171
	Other credits (a)		51		35
	Net write-offs (b)		(173)		(142)
	Other debits (c)		(26)		(16)
Balance, September 30		$	183	$	158

• Primarily reserve balances related to new groups of, and participation interests in, Card Member receivables purchased from affiliates, totaling $9.7 billion and $ 6.0 billion for the nine months endedSeptember 30, 2018 and 2017, respectively.
• Net of recoveries of $84 million and $70 million for the nine months endedSeptember 30, 2018 and 2017, respectively.
• Primarily reserve balances related to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold totaled $4.5billion and $ 2.6 billion for the nine months endedSeptember 30,2018 and 2017, respectively.

Changes in Card Member Loans Reserve for Losses

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

(Millions)		2018		2017
Balance, January 1		$	5	$	5
	Provisions		4		5
	Net write-offs(a)		(4)		(5)
Balance, September 30		$	5	$	5

Net of recoveries of $ 1.0 million for each of the nine months endedSeptember 30, 2018 and 2017.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

4. Derivatives and Hedging Activities

Credco uses derivative financial instruments 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 Credco’s assessment of the credit risk of its derivative counterparties as of September 30, 2018 and December 31, 2017, 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 September 30, 2018 and December 31, 2017:

		Other Assets				Other Liabilities
		Fair Value				Fair Value
(Millions)		2018		2017		2018		2017
Derivatives designated as hedging instruments:
	Fair value hedges - Interest rate contracts (a)	$	―	$	―	$	―	$	―
	Net investment hedges - Foreign exchange contracts		90		54		26		38
Total derivatives designated as hedging instruments			90		54		26		38
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		15		9		62		57
Total derivatives, gross			105		63		88		95
Less: Cash collateral netting (b)			―		―		―		―
Derivative asset and derivative liability netting (c)			(25)		(26)		(25)		(26)
Total derivatives, net		$	80	$	37	$	63	$	69

• For centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral. Accordingly, assets and liabilities are disclosed for centrally cleared derivatives, each net of variation margin.
• Credco posted $67 million and $115 million as of September 30, 2018 and December 31, 2017, 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.

A majority of Credco’s derivative assets and liabilities as of September 30,2018 and December 31,2017 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 $14.5 billion and $16.2 billion of its fixed-rate debt obligations designated in fair value hedgingrelationships as ofSeptember 30, 2018 and December 31, 2017, respectively.

The following table represents the gains and losses associated with fair value hedges ofCredco’s fixed-rate long-term debt:

		Gains (losses)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(Millions)		2018		2017		2018		2017
		Interest Expense(a)		Other Expenses		Interest Expense(a)		Other Expenses
Fixed-rate long-term debt	$	(4)	$	(11)	$	123	$	(40)
Derivatives designated as hedging instruments		2		20		(113)		11
Total	$	(2)	$	9	$	10	$	(29)

Credco adopted new accounting guidance providing targeted improvements to the accounting for hedging activities effective January 1, 2018. In compliance with the standard, amounts previously recorded in Other expenses have been prospectively recorded in Interest expense. Refer to Note 1 for additional information.

The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $14.2 billion and $16.0 billion as of September 30, 2018 and December 31, 2017, respectively, including offsetting amounts of $278 million and $155 million for the respective periods, related to the cumulative amount of fair value hedging adjustments.

Credco recognized a net increase of $ 23 million and a net reduction of $ 8 million in Interest expense on Long-term debt for the three months endedSeptember 30, 2018 and 2017, respectively, and a net increase of $ 46 million and a net reduction of $47 million for the nine months endedSeptember 30, 2018 and 2017, respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges.

Net Investment Hedges

The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, were losses of $3 million and$95 million for the three months endedSeptember 30, 2018 and 2017, respectively and a gain of $59 million and a loss of $263 million for the nine months endedSeptember 30, 2018 and 2017, respectively.No amounts associated with net investment hedges were reclassified from AOCI into income for the three and nine months endedSeptember 30,2018 and 2017.

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 net gains of $ 10 million and $8 million for the three months endedSeptember 30, 2018 and 2017, respectively, and net gains of $ 40 million and $19 million for the nine months endedSeptember 30, 2018 and 2017, respectively, and are recognized in Other expenses.

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Fair Values

9 Months Ended

Sep. 30, 2018

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 September 30, 2018 and December 31, 2017:

(Millions)		2018		2017
Assets:
Derivatives, gross (a)	$	105	$	63
Total assets		105		63
Liabilities:
Derivatives, gross (a)		88		95
Total liabilities	$	88	$	95

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 value for Credco’s financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of September 30, 2018 and December 31, 2017.The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2018 and December 31, 2017and require management judgment. These figures may not be indicative of future fair values, nor can Credco’s fair value be estimated by aggregating the amounts presented.

				Carrying		Corresponding Fair Value Amount
2018 (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)	$	0.2	$	0.2	$	0.2	$	―	$	―
			Other financial assets(b)		26.0		26.0		0.1		25.9		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.6		0.6		―		―		0.6
			Loans to affiliates and other		13.6		13.5		―		8.4		5.1
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			15.7		15.7		―		15.7		―
	Financial liabilities carried at other than fair value
			Long-term debt		21.4		21.5		―		21.5		―
			Long-term debt to affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

				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)	$	0.2	$	0.2	$	0.2	$	―	$	―
			Other financial assets(b)		20.6		20.6		0.1		20.5		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.6		0.6		―		―		0.6
			Loans to affiliates and other		14.5		14.4		―		10.0		4.4
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			8.6		8.6		―		8.6		―
	Financial liabilities carried at other than fair value
			Long-term debt		24.2		24.5		―		24.5		―
			Long-term debt to affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

• Amounts reflect interest-bearing deposits.
• Level 1 amounts reflect interest-bearing restricted cash and Level 2 amounts primarily reflect Card Member receivables.

Nonrecurring Fair Value Measurements

During the nine months endedSeptember 30, 2018 and during the year ended December 31, 2017, 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

9 Months Ended

Sep. 30, 2018

Variable Interest Entity [Abstract]

Variable Interest Entity

6.Variable Interest Entity

Credco established a Variable Interest Entity, American Express Canada Credit Corporation (AECCC), primarily to issue notes in Canada under a medium-term note program and lend the proceeds to affiliates. The notes issued under the medium-term note 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.

As of September 30, 2018 and December 31, 2017, total assets of AECCC were $8 million and $466 million, respectively, and total liabilities were nil and $457 million, respectively, none of which were eliminated in consolidation. In March 2018, the funds lent by AECCC were repaid by the affiliates and used to satisfy the scheduled maturity of notes issued under the medium-term note program.

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Changes in Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2018

Changes In Accumulated Other Comprehensive Income Disclosure [Abstract]

Changes In Accumulated Other Comprehensive Income

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 nine months endedSeptember 30, 2018 and 2017were as follows:

		Foreign
		Currency
		Translation
Three Months Ended September 30, 2018 (Millions), net of tax		Adjustments
Balances as of June 30, 2018	$	(1,009)
Net translation loss of investments in foreign operations		(13)
Net losses related to hedges of investment in foreign operations		(3)
Net change in accumulated other comprehensive loss		(16)
Balances as of September 30, 2018	$	(1,025)
		Foreign
		Currency
		Translation
Nine Months Ended September 30, 2018 (Millions), net of tax		Adjustments
Balances as of December 31, 2017	$	(998)
Net translation loss of investments in foreign operations		(86)
Net gains related to hedges of investment in foreign operations		59
Net change in accumulated other comprehensive loss		(27)
Balances as of September 30, 2018	$	(1,025)
		Foreign
		Currency
		Translation
Three Months Ended September 30, 2017 (Millions), net of tax		Adjustments
Balances as of June 30, 2017	$	(941)
Net translation gain of investments in foreign operations		146
Net losses related to hedges of investment in foreign operations		(95)
Net change in accumulated other comprehensive loss		51
Balances as of September 30, 2017	$	(890)
		Foreign
		Currency
		Translation
Nine Months Ended September 30, 2017 (Millions), net of tax		Adjustments
Balances as of December 31, 2016	$	(1,263)
Net translation gain of investments in foreign operations(a)		636
Net losses related to hedges of investment in foreign operations		(263)
Net change in accumulated other comprehensive loss		373
Balances as of September 30, 2017	$	(890)

Includes $289 million of tax benefits recognized in the nine months endedSeptember 30,2017.

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

		Tax (benefit) expense
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(Millions)		2018		2017		2018		2017
Foreign currency translation adjustments (a)	$	6	$	(7)	$	(25)	$	(252)
Net investment hedges		(1)		(57)		18		(157)
Total tax impact	$	5	$	(64)	$	(7)	$	(409)

Includes $289 million of tax benefits recognizedin the nine months endedSeptember 30,2017.

No amounts were reclassified out of AOCI into the Consolidated Statements of Income and Retained Earnings for the three and nine months endedSeptember 30, 2018 and 2017.

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Income Taxes

9 Months Ended

Sep. 30, 2018

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 (1.9) percent and 15.3 percent for the three months ended September 30, 2018 and 2017, respectively, and (5.8) percent and 7.4 percent for the nine months ended September 30, 2018 and 2017, respectively. The changes in tax rates for both periods primarily reflect a reduction in the U.S. statutory corporate income tax rate from 35 percent to 21 percent effective January 1, 2018, as a result of the Tax Act. The tax rate for the nine months ended September 30, 2018 includes a $24 million discrete tax benefit that reduced the reported effective tax rate by 7.8 percent and is related to a revision to the provisional tax charge recorded in 2017 as a result of the Tax Act. The revision to the provisional tax charge results from additional analysis of the foreign withholding tax consequences of future cash dividends paid from non-U.S. subsidiaries. Credco is still analyzing the impacts of the Tax Act; therefore, the 2017 tax charge continues to be provisional.

The tax rate in each of the periods reflects the geographic mix of expenses in the United States that generates a tax benefit at the U.S. statutory rate and foreign earnings taxed at lower rates, and 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. American Express is currently under examination with the IRS for tax years 2008 through 2014.

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)

9 Months Ended

Sep. 30, 2018

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 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 established a Variable Interest Entity, American Express Canada Credit Corporation (AECCC), primarily to issue notes in Canada under a medium-term note program and lend the proceeds to affiliates. The notes issued under the medium-term note 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 Card Member Loans (Tables)

9 Months Ended

Sep. 30, 2018

Accounts Receivable And Loans Tables [Abstract]

Card Member receivables detail

Card Member receivables as of September 30, 2018 and December 31, 2017 consisted of:

(Millions)		2018		2017
Global Consumer Services Group (a)	$	8,762	$	5,384
Global Commercial Services (b)		17,132		14,892
Card Member receivables (c)		25,894		20,276
Less: Reserve for losses		183		145
Card Member receivables, net (d)	$	25,711	$	20,131

• Comprised of U.S. and International Consumer Services.
• Comprised of Corporate and Small Business Services.
• Net of deferred discount revenue totaling $69 million and $43 million as of September 30, 2018 and December 31, 2017, respectively.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member loans detail

Card Member loans as of September 30, 2018 and December 31, 2017 consisted of:

(Millions)		2018		2017
Global Consumer Services Group (a)	$	590	$	561
Less: Reserve for losses		5		5
Card Member loans, net (b)	$	585	$	556

• Comprised of International Consumer Services.
• 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 September 30, 2018 and December 31, 2017:

				30-59		60-89
				Days		Days		90+ Days
2018(Millions)		Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
Global Consumer Services Group	$	8,708	$	18	$	12	$	24	$	8,762
Global Commercial Services
Global Small Business Services		1,953		6		4		7		1,970
Global Corporate Payments (a)		(b)		(b)		(b)		118		15,162
Card Member Loans:
Global Consumer Services Group	$	586	$	1	$	1	$	2	$	590
				30-59		60-89
				Days		Days		90+ Days
2017(Millions)		Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
Global Consumer Services Group	$	5,336	$	18	$	11	$	19	$	5,384
Global Commercial Services
Global Small Business Services		1,397		5		4		6		1,412
Global Corporate Payments (a)		(b)		(b)		(b)		112		13,480
Card Member Loans:
Global Consumer Services Group	$	557	$	1	$	1	$	2	$	561

• 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 nine months endedSeptember 30:

	2018				2017
			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:
Global Consumer Services Group	1.24	%	0.62	%	0.99	%	0.88	%
Global Small Business Services	1.51	%	0.86	%	1.01	%	1.10	%
Card Member Loans:
Global Consumer Services Group	0.93	%	0.68	%	1.41	%	0.80	%
	2018				2017
	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	0.07	%	0.78	%	0.07	%	0.89	%

• 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)

9 Months Ended

Sep. 30, 2018

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 nine months endedSeptember 30:

(Millions)		2018		2017
Balance, January 1		$	145	$	110
	Provisions		186		171
	Other credits (a)		51		35
	Net write-offs (b)		(173)		(142)
	Other debits (c)		(26)		(16)
Balance, September 30		$	183	$	158

• Primarily reserve balances related to new groups of, and participation interests in, Card Member receivables purchased from affiliates, totaling $9.7 billion and $ 6.0 billion for the nine months endedSeptember 30, 2018 and 2017, respectively.
• Net of recoveries of $84 million and $70 million for the nine months endedSeptember 30, 2018 and 2017, respectively.
• Primarily reserve balances related to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold totaled $4.5billion and $ 2.6 billion for the nine months endedSeptember 30,2018 and 2017, 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 nine months endedSeptember 30:

(Millions)		2018		2017
Balance, January 1		$	5	$	5
	Provisions		4		5
	Net write-offs(a)		(4)		(5)
Balance, September 30		$	5	$	5

Net of recoveries of $ 1.0 million for each of the nine months endedSeptember 30, 2018 and 2017.

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2018

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 September 30, 2018 and December 31, 2017:

		Other Assets				Other Liabilities
		Fair Value				Fair Value
(Millions)		2018		2017		2018		2017
Derivatives designated as hedging instruments:
	Fair value hedges - Interest rate contracts (a)	$	―	$	―	$	―	$	―
	Net investment hedges - Foreign exchange contracts		90		54		26		38
Total derivatives designated as hedging instruments			90		54		26		38
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		15		9		62		57
Total derivatives, gross			105		63		88		95
Less: Cash collateral netting (b)			―		―		―		―
Derivative asset and derivative liability netting (c)			(25)		(26)		(25)		(26)
Total derivatives, net		$	80	$	37	$	63	$	69

• For centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral. Accordingly, assets and liabilities are disclosed for centrally cleared derivatives, each net of variation margin.
• Credco posted $67 million and $115 million as of September 30, 2018 and December 31, 2017, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other assets on Credco’s Consolidated Balance Sheets and are not netted against the derivative balances.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

Effect of fair value hedges on results of operations

The following table represents the gains and losses associated with fair value hedges ofCredco’s fixed-rate long-term debt:

		Gains (losses)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(Millions)		2018		2017		2018		2017
		Interest Expense(a)		Other Expenses		Interest Expense(a)		Other Expenses
Fixed-rate long-term debt	$	(4)	$	(11)	$	123	$	(40)
Derivatives designated as hedging instruments		2		20		(113)		11
Total	$	(2)	$	9	$	10	$	(29)

Credco adopted new accounting guidance providing targeted improvements to the accounting for hedging activities effective January 1, 2018. In compliance with the standard, amounts previously recorded in Other expenses have been prospectively recorded in Interest expense. Refer to Note 1 for additional information.

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Fair Values (Tables)

9 Months Ended

Sep. 30, 2018

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 September 30, 2018 and December 31, 2017:

(Millions)		2018		2017
Assets:
Derivatives, gross (a)	$	105	$	63
Total assets		105		63
Liabilities:
Derivatives, gross (a)		88		95
Total liabilities	$	88	$	95

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 value for Credco’s financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of September 30, 2018 and December 31, 2017.

				Carrying		Corresponding Fair Value Amount
2018 (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)	$	0.2	$	0.2	$	0.2	$	―	$	―
			Other financial assets(b)		26.0		26.0		0.1		25.9		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.6		0.6		―		―		0.6
			Loans to affiliates and other		13.6		13.5		―		8.4		5.1
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			15.7		15.7		―		15.7		―
	Financial liabilities carried at other than fair value
			Long-term debt		21.4		21.5		―		21.5		―
			Long-term debt to affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

				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)	$	0.2	$	0.2	$	0.2	$	―	$	―
			Other financial assets(b)		20.6		20.6		0.1		20.5		―
	Financial assets carried at other than fair value
			Card Member loans, net		0.6		0.6		―		―		0.6
			Loans to affiliates and other		14.5		14.4		―		10.0		4.4
Financial Liabilities:
	Financial liabilities for which carrying values equal
		or approximate fair value			8.6		8.6		―		8.6		―
	Financial liabilities carried at other than fair value
			Long-term debt		24.2		24.5		―		24.5		―
			Long-term debt to affiliates	$	0.3	$	0.3	$	―	$	0.3	$	―

• Amounts reflect interest-bearing deposits.
• Level 1 amounts reflect interest-bearing restricted cash and Level 2 amounts primarily reflect Card Member receivables.

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Changes in Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2018

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 nine months endedSeptember 30, 2018 and 2017were as follows:

		Foreign
		Currency
		Translation
Three Months Ended September 30, 2018 (Millions), net of tax		Adjustments
Balances as of June 30, 2018	$	(1,009)
Net translation loss of investments in foreign operations		(13)
Net losses related to hedges of investment in foreign operations		(3)
Net change in accumulated other comprehensive loss		(16)
Balances as of September 30, 2018	$	(1,025)
		Foreign
		Currency
		Translation
Nine Months Ended September 30, 2018 (Millions), net of tax		Adjustments
Balances as of December 31, 2017	$	(998)
Net translation loss of investments in foreign operations		(86)
Net gains related to hedges of investment in foreign operations		59
Net change in accumulated other comprehensive loss		(27)
Balances as of September 30, 2018	$	(1,025)
		Foreign
		Currency
		Translation
Three Months Ended September 30, 2017 (Millions), net of tax		Adjustments
Balances as of June 30, 2017	$	(941)
Net translation gain of investments in foreign operations		146
Net losses related to hedges of investment in foreign operations		(95)
Net change in accumulated other comprehensive loss		51
Balances as of September 30, 2017	$	(890)
		Foreign
		Currency
		Translation
Nine Months Ended September 30, 2017 (Millions), net of tax		Adjustments
Balances as of December 31, 2016	$	(1,263)
Net translation gain of investments in foreign operations(a)		636
Net losses related to hedges of investment in foreign operations		(263)
Net change in accumulated other comprehensive loss		373
Balances as of September 30, 2017	$	(890)

Includes $289 million of tax benefits recognized in the nine months endedSeptember 30,2017.

Accumulated Other Comprehensive Loss Income - Tax Effect

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

		Tax (benefit) expense
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(Millions)		2018		2017		2018		2017
Foreign currency translation adjustments (a)	$	6	$	(7)	$	(25)	$	(252)
Net investment hedges		(1)		(57)		18		(157)
Total tax impact	$	5	$	(64)	$	(7)	$	(409)

Includes $289 million of tax benefits recognizedin the nine months endedSeptember 30,2017.

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Summary of Significant Accounting Policies Textuals (Details)	9 Months Ended
	Sep. 30, 2018
Summary Of Significant Accounting Policies Textuals [Abstract]
Ratio of combined earnings and fixed earnings to fixed charges required to maintain availability of credit line	1.25

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Card Member Receivables and Card Member Loans (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Accounts Receivable [Abstract]
Card Member receivables	$ 25,894	$ 20,276
Less: Reserve for losses	183	145	$ 158	$ 110
Card Member receivables, net	25,711	20,131
Global Consumer Services Group [Member]
Accounts Receivable [Abstract]
Card Member receivables	8,762	5,384
Global Commercial Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	$ 17,132	$ 14,892

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Card Member Receivables and Card Member Loans 1 (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Card Member loans
Less: Reserve for losses	$ 5	$ 5	$ 5	$ 5
Card Member loans, net	585	556
Global Consumer Services Group [Member]
Card Member loans
Card Member loans	590	561
Less: Reserve for losses	5	5
Card Member loans, net	$ 585	$ 556

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Card Member Receivables and Card Member Loans 2 (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	$ 25,894	$ 20,276
Global Consumer Services Group [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	8,762	5,384
Card Member loans Total aging	590	561
Global Consumer Services Group [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	8,708	5,336
Global Consumer Services Group [Member] | Card Member Receivables [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	18	18
Global Consumer Services Group [Member] | Card Member Receivables [Member] | 60 To 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	12	11
Global Consumer Services Group [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	24	19
Global Consumer Services Group [Member] | Card Member Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	586	557
Global Consumer Services Group [Member] | Card Member Loans [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	1	1
Global Consumer Services Group [Member] | Card Member Loans [Member] | 60 To 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	1	1
Global Consumer Services Group [Member] | Card Member Loans [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	2	2
Global Commercial Services [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	17,132	14,892
Global Small Business Services [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	1,970	1,412
Global Small Business Services [Member] | Card Member Receivables [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Current	1,953	1,397
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	6	5
Global Small Business Services [Member] | Card Member Receivables [Member] | 60 To 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	4	4
Global Small Business Services [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	7	6
Global Corporate Payments [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Card Member receivables Total Aging	15,162	13,480
Global Corporate Payments [Member] | Card Member Receivables [Member] | 90+ Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Period past due	$ 118	$ 112

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Card Member Receivables and Card Member Loans 3 (Details)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Global Consumer Services Group [Member] | Card Member Receivables [Member] | Net Write-Off Rate [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	1.24%	0.99%
Global Consumer Services Group [Member] | Card Member Receivables [Member] | 30+ Days Past Due as a % of Total [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.62%	0.88%
Global Consumer Services Group [Member] | Card Member Loans [Member] | Net Write-Off Rate [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.93%	1.41%
Global Consumer Services Group [Member] | Card Member Loans [Member] | 30+ Days Past Due as a % of Total [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.68%	0.80%
Global Small Business Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	1.51%	1.01%
Global Small Business Services [Member] | Card Member Receivables [Member] | 30+ Days Past Due as a % of Total [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.86%	1.10%
Global Corporate Payments [Member] | Card Member Receivables [Member] | Net Loss Ratio as a % of Charge Volume [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.07%	0.07%
Global Corporate Payments [Member] | Card Member Receivables [Member] | 90+ days past billing as a percentage of receivables [Member]
Credit Quality Indicator for Receivables and Loans
Credit Quality Indicators	0.78%	0.89%

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Card Member Receivables and Card Member Loans Textuals (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Deferred discount revenue on Card Member receivable	$ 69	$ 43

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Reserves (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Changes in the Card Member receivable reserve for losses
Balance, January 1	$ 145	$ 110
Provisions	186	171
Other credits	51	35
Net write-offs	(173)	(142)
Other debits	(26)	(16)
Balance, September 30	$ 183	$ 158

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Reserves 1 (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Changes in the Card Member loans reserve for losses [Line Items]
Balance, January 1	$ 5	$ 5
Provisions	4	5
Net Write-Offs	(4)	(5)
Balance, September 30	$ 5	$ 5

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Reserves Textuals (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Reserves For Losses (Textuals) [Abstract]
Participation interests in Card Member receivables purchased from affiliates	$ 9,700.0	$ 6,000.0
Allowance for Card Member Receivables, Recoveries of Bad Debts	84.0	70.0
Allowance for Card Member Loans, Recoveries of Bad Debts	1.0	1.0
Participation Interest in Card Member Receivables Sold to Affiliates	$ 4,500.0	$ 2,600.0

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Derivatives and Hedging Activities (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	$ 105	$ 63
Total fair value of derivative liabilities	88	95
Cash collateral netting, Liabilities	0	0
Cash collateral netting, Assets	0	0
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset and derivative liability netting	(25)	(26)
Total derivatives assets, net	80	37
Other Assets [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	90	54
Other Assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	15	9
Other Assets [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative assets	0	0
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	90	54
Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative asset and derivative liability netting	(25)	(26)
Total derivatives liabilities, net	63	69
Other Liabilities [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	26	38
Other Liabilities [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	62	57
Other Liabilities [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	0	0
Other Liabilities [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivative liabilities	$ 26	$ 38

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Derivatives and Hedging Activities 1 (Details) - Fair Value Hedging [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Expense [Member]
Derivative Instruments, Gains (Losses) [Line Items]
Fixed-rate long-term debt		$ (11)		$ (40)
Derivatives designated as hedging instruments		20		11
Total		$ 9		$ (29)
Interest Expense [Member]
Derivative Instruments, Gains (Losses) [Line Items]
Fixed-rate long-term debt	$ (4)		$ 123
Derivatives designated as hedging instruments	2		(113)
Total	$ (2)		$ 10

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Derivatives and Hedging Activities Textuals (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Derivatives And Hedging Activities Textuals [Abstract]
Net (increase) reduction in interest expense on long term debt.	$ (23)	$ 8	$ (46)	$ 47
Derivative [Line Items]
Notional amount of long-term debt	14,200		14,200		$ 16,000
Loss (gain) on net investment hedges	3	95	(59)	263
Amounts reclassified from AOCI into income	0	0	0	0
Margin on interest rate swap not netted	67		67		115
Gain in Changes of Fair Value of Derivatives not designated as hedges	10	$ 8	40	$ 19
Cumulative fair value hedging adjustment of hedged item in fair value hedge	(278)		(278)		(155)
Fair Value Hedging [Member]
Derivative [Line Items]
Notional amount of long-term debt	$ 14,500		$ 14,500		$ 16,200

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Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Assets [Abstract]
Derivatives, gross	$ 105	$ 63
Liabilities [Abstract]
Derivatives, gross	88	95
Level 2 [Member]
Assets [Abstract]
Derivatives, gross	105	63
Total assets	105	63
Liabilities [Abstract]
Derivatives, gross	88	95
Total liabilities	$ 88	$ 95

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Fair Value 1 (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents per Consolidated Balance Sheets	$ 200	$ 196	$ 1,341	$ 1,211
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	585	556
Loans to affiliates and other	13,579	14,527
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	21,384	24,153
Long Term Debt with Affiliates	268	270
Carrying Value [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents per Consolidated Balance Sheets	200	200
Other financial assets	26,000	20,600
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	600	600
Loans to affiliates and other	13,600	14,500
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	15,700	8,600
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	21,400	24,200
Long Term Debt with Affiliates	300	300
Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents per Consolidated Balance Sheets	200	200
Other financial assets	26,000	20,600
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	600	600
Loans to affiliates and other	13,500	14,400
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	15,700	8,600
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	21,500	24,500
Long Term Debt with Affiliates	300	300
Level 1 [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents per Consolidated Balance Sheets	200	200
Other financial assets	100	100
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	0	0
Loans to affiliates and other	0	0
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	0	0
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	0	0
Long Term Debt with Affiliates	0	0
Level 2 [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents per Consolidated Balance Sheets	0	0
Other financial assets	25,900	20,500
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	0	0
Loans to affiliates and other	8,400	10,000
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	15,700	8,600
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	21,500	24,500
Long Term Debt with Affiliates	300	300
Level 3 [Member]
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents per Consolidated Balance Sheets	0	0
Other financial assets	0	0
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	600	600
Loans to affiliates and other	5,100	4,400
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	0	0
Financial liabilities carried at other than fair value [Abstract]
Total Long-term Debt	0	0
Long Term Debt with Affiliates	$ 0	$ 0

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Fair Value Textuals (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value for impairment	$ 0	$ 0

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Variable Interest Entity (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Total assets	$ 40,411	$ 35,889
Total liabilities	38,241	34,018
Variable Interest Entity, Primary Beneficiary [Member] | American Express Canada Credit Corporation Member [Member]
Variable Interest Entity [Line Items]
Total assets	8	466
Total liabilities	0	457
Liabilities eliminated in consolidation	0	0
Assets eliminated in consolidation	$ 0	$ 0

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Changes In Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Changes in other comprehensive income
Balances as of start of period			$ (998)
Balances as of end of period	$ (1,025)		(1,025)
Foreign Currency Translation Adjustment [Member]
Changes in other comprehensive income
Balances as of start of period	(1,009)	$ (941)	(998)	$ (1,263)
Net translation (loss) gain of investments in foreign operations	(13)	146	(86)	636
Net (losses) gains related to hedges of investment in foreign operations	(3)	(95)	59	(263)
Net change in accumulated other comprehensive loss	(16)	51	(27)	373
Balances as of end of period	$ (1,025)	$ (890)	$ (1,025)	$ (890)

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Changes in Accumulated Other Comprehensive Income (Loss) 1 (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other comprehensive loss
Foreign currency translation adjustments,tax	$ 6	$ (7)	$ (25)	$ (252)
Net investment hedges	(1)	(57)	18	(157)
Total tax impact	$ 5	$ (64)	$ (7)	(409)
Tax Benefits Recognized in the period				$ 289

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Changes in Accumulated Other Comprehensive Income (Loss) Textuals (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
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 Textuals (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Taxes (Textuals) [Line Items]
U.S. Tax Act Discrete Tax Benefit				$ 24
Effective tax rate	(1.90%)	15.30%	(5.80%)	7.40%
Reduction in Effective Tax Rate			7.80%
Tax Year 2018 [Member]
Income Taxes (Textuals) [Line Items]
U.S. statutory federal income tax rate	21.00%	35.00%	21.00%	35.00%
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