Item 16. FORM 10-K SUMMARY

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Item 16. FORM 10-K SUMMARY

Not applicable.

SIGNATURES

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


AMERICAN EXPRESS COMPANY
/s/ JEFFREY C. CAMPBELL
Jeffrey C. Campbell Chief Financial Officer

February 13, 2020

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


/s/ STEPHEN J. SQUERI						/s/ MICHAEL O. LEAVITT
Stephen J. Squeri Chairman, Chief Executive Officer and Director						Michael O. Leavitt Director

/s/ JEFFREY C. CAMPBELL						/s/ THEODORE J. LEONSIS
Jeffrey C. Campbell Chief Financial Officer						Theodore J. Leonsis Director

/s/ RICHARD PETRINO						/s/ KAREN L. PARKHILL
Richard Petrino Executive Vice President and Corporate Controller (Principal Accounting Officer)						Karen L. Parkhill Director

/s/ CHARLENE BARSHEFSKY						/s/ LYNN A. PIKE
Charlene Barshefsky Director						Lynn A. Pike Director

/s/ JOHN J. BRENNAN						/s/ DANIEL L. VASELLA
John J. Brennan Director						Daniel L. Vasella Director

/s/ PETER CHERNIN						/s/ RONALD A. WILLIAMS
Peter Chernin Director						Ronald A. Williams Director

/s/ RALPH DE LA VEGA						/s/ CHRISTOPHER D. YOUNG
Ralph de la Vega Director						Christopher D. Young Director

/s/ ANNE LAUVERGEON
Anne Lauvergeon Director

February 13, 2020

Appendix

GUIDE 3 – STATISTICAL DISCLOSURE BY BANK HOLDING COMPANIES

The accompanying supplemental information should be read in conjunction with the “MD&A”, “Consolidated Financial Statements” and notes thereto.

Certain reclassifications of prior period amounts have been made to conform to the current period presentation. These reclassifications did not have a material impact on our financial position or results of operations.

Distribution of Assets, Liabilities, and Shareholders’ Equity; Interest Rates and Interest Differential

The following tables provide a summary of our consolidated average balances including major categories of interest-earning assets and interest-bearing liabilities along with an analysis of net interest earnings. Consolidated average balances, interest, and average yields are segregated between U.S. and non-U.S. offices. Assets, liabilities, interest income and interest expense are attributed to the United States and outside the United States based on the location of the office recording such items.


	2019										2018								2017
Years Ended December 31, (Millions, except percentages)	Average Balance (a)		Interest Income		Average Yield		Average Balance (a)		Interest Income		Average Yield		Average Balance (a)		Interest Income		Average Yield
Interest-earning assets
Interest-bearing deposits in other banks (b)
U.S.	$	22,552	$	527	2.3	%	$	25,001	$	491	2.0	%	$	24,510	$	277	1.1	%
Non-U.S.	2,085		48		2.3		1,830		33		1.8		1,773		17		1.0
Federal funds sold and securities purchased under agreements to resell
U.S.	19		3		15.8		—		—		—		—		—		—
Non-U.S.	56		6		10.7		58		7		12.1		80		6		7.5
Short-term investment securities
U.S.	26		1		3.8		3		—		—		182		1		0.5
Non-U.S.	93		1		1.1		149		1		0.7		1,070		7		0.7
Card Member loans (c)
U.S.	72,422		9,452		13.1		66,620		8,387		12.6		58,853		6,894		11.7
Non-U.S.	10,362		1,400		13.5		9,136		1,206		13.2		7,847		1,038		13.2
Other loans (c)
U.S.	4,101		413		10.1		3,110		312		10.0		1,887		195		10.3
Non-U.S.	170		43		25.3		145		36		24.8		148		27		18.2
Taxable investment securities(d)
U.S.	6,335		147		2.3		3,025		68		2.2		1,216		24		2.0
Non-U.S.	589		27		4.6		562		23		4.1		547		17		3.1
Non-taxable investment securities (d)
U.S.	237		11		5.9		855		25		3.7		1,510		48		4.9
Other assets (e)
Primarily U.S.	17		5		n.m.		1		17		n.m.		1		12		n.m.
Total interest-earning assets (f)	$	119,064	$	12,084	10.2	%	$	110,495	$	10,606	9.6	%	$	99,624	$	8,563	8.6	%
U.S.	105,709		10,559				98,615		9,300				88,159		7,451
Non-U.S.	13,355		1,525				11,880		1,306				11,465		1,112

n.m. Denotes rates determined to not be meaningful.

(a)Averages based on month-end balances.

(b)Amounts include (i) average interest-bearing restricted cash balances of $580 million, $663 million and $868 million for 2019, 2018 and 2017, respectively, which are included in other assets on the Consolidated Balance Sheets, and (ii) the associated interest income.

(c)Average non-accrual loans were included in the average Card Member loan balances in amounts of $307 million, $230 million and $187 million in U.S. for 2019, 2018 and 2017, respectively. Average other loan balances for U.S. include average non-accrual loans of $7 million, $4 million and $3 million for 2019, 2018 and 2017, respectively. Average non-accrual loans are considered to determine the average yield on loans.

(d)Average yields for both taxable and non-taxable investment securities have been calculated using amortized cost balances and do not include changes in fair value recorded in other comprehensive loss. Average yield on non-taxable investment securities is calculated on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent for both 2019 and 2018 and 35 percent for 2017.

(e)Amounts include (i) average equity securities balances, which are included in investment securities on the Consolidated Balance Sheets, and (ii) the associated income.

(f)The average yield on total interest-earning assets is adjusted for the impacts of the items mentioned in footnote (d).

A-1


Years Ended December 31, (Millions, except percentages)	2019 Average Balance (a)			2018 Average Balance (a)			2017 Average Balance (a)
Non-interest-earning assets
Cash and due from banks
U.S.	$	2,842		$	2,793		$	2,393
Non-U.S.	732			527			489
Card Member receivables, net
U.S.	27,724			26,435			21,262
Non-U.S.	28,040			27,100			27,621
Reserves for Card Member and other loans losses
U.S.	(2,057)			(1,740)			(1,264)
Non-U.S.	(258)			(217)			(177)
Other assets (b)
U.S.	12,689			12,351			12,462
Non-U.S.	5,593			5,077			5,000
Total non-interest-earning assets	75,305			72,326			67,786
U.S.	41,198			39,839			34,853
Non-U.S.	34,107			32,487			32,933
Total assets	$	194,369		$	182,821		$	167,410
U.S.	146,908			138,454			123,012
Non-U.S.	47,461			44,367			44,398

Percentage of total average assets attributable to non-U.S. activities	24.4		%	24.3		%	26.5		%

(a)Averages based on month-end balances.

(b)Includes premises and equipment, net of accumulated depreciation and amortization.

A-2


	2019												2018									2017
Years Ended December 31, (Millions, except percentages)	Average Balance (a)			Interest Expense		Average Rate		Average Balance (a)			Interest Expense		Average Rate		Average Balance (a)			Interest Expense		Average Rate
Interest-bearing liabilities
Customer deposits
U.S.
Savings	$	59,087		$	1,247	2.1	%	$	50,499		$	919	1.8	%	$	42,134		$	471	1.1	%
Time	12,179			298		2.4		15,975			357		2.2		14,701			301		2.0
Demand	447			9		2.0		285			6		2.1		215			3		1.4
Non-U.S.
Other time and savings	16			1		6.3		21			1		4.8		17			1		5.9
Other demand	10			4		40.0		12			4		33.3		18			3		16.7
Short-term borrowings
U.S.	407			22		5.4		274			14		5.1		1,188			15		1.3
Non-U.S.	2,621			15		0.6		2,106			19		0.9		2,145			18		0.8
Long-term debt and other (b)
U.S.	57,936			1,859		3.2		54,631			1,613		3.0		51,366			1,281		2.5
Non-U.S.	325			9		2.8		390			10		2.6		725			19		2.6
Total interest-bearing liabilities	$	133,028		$	3,464	2.6	%	$	124,193		$	2,943	2.4	%	$	112,509		$	2,112	1.9	%
U.S.	130,056			3,435				121,664			2,909				109,604			2,071
Non-U.S.	2,972			29				2,529			34				2,905			41

Non-interest-bearing liabilities
Accounts payable
U.S.	7,116							7,120							6,788
Non-U.S.	6,202							6,064							5,254
Customer Deposits(c)
U.S.	385							377							351
Non-U.S.	387							370							331
Other liabilities
U.S.	18,360							18,619							16,366
Non-U.S.	6,079							5,428							4,954
Total non-interest-bearing liabilities	38,529							37,978							34,044
U.S.	25,861							26,116							23,505
Non-U.S.	12,668							11,862							10,539
Total liabilities	171,557							162,171							146,553
U.S.	155,917							147,780							133,109
Non-U.S.	15,640							14,391							13,444
Total shareholders' equity	22,812							20,650							20,857
Total liabilities and shareholders' equity	$	194,369						$	182,821						$	167,410

Percentage of total average liabilities attributable to non-U.S. activities	9.1		%					8.9		%					9.2		%
Interest rate spread						7.6	%						7.2	%						6.7	%
Net interest income and net average yield on interest-earning assets(d)`				$	8,620	7.2	%				$	7,663	6.9	%				$	6,451	6.5	%

(a)Averages based on month-end balances.

(b)Interest expense primarily reflects interest on long-term financing and interest incurred on derivative instruments in qualifying hedging relationships on the hedged debt instruments. Additionally, we 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 Total interest expense.

(c)U.S. non-interest-bearing Customer deposits include average Card Member credit balances of $353 million, $342 million and $314 million for 2019, 2018 and 2017, respectively. Non-U.S. non-interest-bearing Customer deposits include average Card Member credit balances of $381 million, $359 million and $318 million for 2019, 2018 and 2017, respectively.

(d)Net average yield on interest-earning assets is defined as net interest income divided by average total interest-earning assets as adjusted for the items mentioned in footnote (d) from the table on A-1.

A-3

Changes in Net Interest Income − Volume and Rate Analysis (a)

The following table presents the amount of changes in interest income and interest expense due to changes in both average volume and average rate. Major categories of interest-earning assets and interest-bearing liabilities have been segregated between U.S. and non-U.S. offices. Average volume/rate changes have been allocated between the average volume and average rate variances on a consistent basis based upon the respective percentage changes in average balances and average rates.


	2019 Versus 2018										2018 Versus 2017
	Increase (Decrease) due to change in:								Increase (Decrease) due to change in:
Years Ended December 31, (Millions)	Average Volume		Average Rate		Net Change		Average Volume		Average Rate		Net Change
Interest-earning assets
Interest-bearing deposits in other banks
U.S.	$	(48)	$	84	$	36	$	6	$	208	$	214
Non-U.S.	5		10		15		1		15		16
Federal funds sold and securities purchased under agreements to resell
U.S.	—		3		3		—		—		—
Non-U.S.	—		(1)		(1)		(2)		3		1
Short-term investment securities
U.S.	—		1		1		(1)		—		(1)
Non-U.S.	—		—		—		(6)		—		(6)
Card Member loans
U.S.	730		335		1,065		910		583		1,493
Non-U.S.	162		32		194		170		(2)		168
Other loans
U.S.	99		2		101		126		(9)		117
Non-U.S.	6		1		7		(1)		10		9
Taxable investment securities
U.S.	72		7		79		36		8		44
Non-U.S.	1		3		4		1		5		6
Non-taxable investment securities
U.S.	(18)		4		(14)		(17)		(6)		(23)
Other assets
Primarily U.S.	272		(284)		(12)		—		5		5
Change in interest income	1,281		197		1,478		1,223		820		2,043
Interest-bearing liabilities
Customer deposits
U.S.
Savings	156		172		328		94		354		448
Time	(85)		26		(59)		26		30		56
Demand	3		—		3		1		2		3
Non-U.S.
Other time and savings	—		—		—		—		—		—
Other demand	(1)		1		—		(1)		2		1
Short-term borrowings
U.S.	7		1		8		(12)		11		(1)
Non-U.S.	5		(9)		(4)		—		1		1
Long-term debt and other
U.S.	98		148		246		81		251		332
Non-U.S.	(2)		1		(1)		(9)		—		(9)
Change in interest expense	181		340		521		180		651		831
Change in net interest income	$	1,100	$	(143)	$	957	$	1,043	$	169	$	1,212

(a)Refer to footnotes from “Distribution of Assets, Liabilities and Shareholders’ Equity” for additional information.

A-4

Loans and Card Member Receivables Portfolios

The following table presents gross loans and Card Member receivables by customer type, segregated between U.S. and non-U.S., based on the domicile of the borrowers. Refer to Notes 2 and 3 to the “Consolidated Financial Statements” for additional information.


December 31, (Millions)	2019		2018		2017		2016		2015
Loans (a) (b)
U.S. loans
Card Member (c)	$	76,027	$	72,007	$	64,542	$	58,242	$	51,446
Other (d)	4,605		3,666		2,554		1,350		1,073
Non-U.S. loans
Card Member (c)	11,354		9,847		8,857		7,023		7,127
Other (d)	173		134		133		111		201
Total loans	$	92,159	$	85,654	$	76,086	$	66,726	$	59,847

Card Member receivables (a) (b)
U.S. Card Member receivables
Consumer (e)	28,187		27,558		26,754		24,768		23,255
Commercial (f)	10,827		11,478		10,868		9,685		8,961
Non-U.S. Card Member receivables
Consumer (e)	12,061		10,625		10,311		7,772		7,101
Commercial (f)	6,338		6,232		6,114		5,083		4,816
Total Card Member receivables	$	57,413	$	55,893	$	54,047	$	47,308	$	44,133

(a)As of December 31, 2019, we had approximately $306 billion of unused credit available to Card Members as part of established lending product agreements. Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Our charge card products generally have no pre-set spending limit, and therefore are not reflected in unused credit available to Card Members.

(b)As of December 31, 2019, our exposure to any concentration of gross loans and Card Member receivables combined, which exceeds 10 percent of total loans and Card Member receivables is further split between $131 billion for individuals and $19 billion for commercial. Loans and Card Member receivables concentrations are defined as loans and Card Member receivables due from multiple borrowers engaged in similar activities that would cause these borrowers to be impacted similarly to certain economic or other related conditions. Refer to Note 23 to the “Consolidated Financial Statements” for additional information on concentrations.

(c)Primarily represents loans to individuals and small businesses.

(d)Other loans primarily represent consumer and commercial non-card financing products.

(e)Represents receivables from individual and small business charge card customers.

(f)Represents receivables from global, large and middle market corporate accounts.

A-5

Maturities and Sensitivities to Changes in Interest Rates

The following table presents contractual maturities of loans and Card Member receivables by customer type, and segregated between U.S. and non-U.S. borrowers, and distribution between fixed and floating interest rates for loans due after one year based upon the stated terms of the loan agreements.


December 31, (Millions)	2019
	Within 1 year (a) (b)		1-5 years (b) (c)		After 5 years (c)		Total
Loans
U.S. loans
Card Member	$	75,707	$	320	$	—	$	76,027
Other	1,606		2,810		189		4,605
Non-U.S. loans
Card Member	11,354		—		—		11,354
Other	143		30		—		173
Total loans	$	88,810	$	3,160	$	189	$	92,159

Loans due after one year at fixed interest rates			$	3,142	$	65	$	3,207
Loans due after one year at variable interest rates			18		124		142
Total loans			$	3,160	$	189	$	3,349
Card Member receivables
U.S. Card Member receivables
Consumer	$	28,102	$	85	$	—	$	28,187
Commercial	10,827		—		—		10,827
Non-U.S. Card Member receivables
Consumer	12,061		—		—		12,061
Commercial	6,338		—		—		6,338
Total Card Member receivables	$	57,328	$	85	$	—	$	57,413

(a)Card Member loans have no stated maturity and are therefore included in the due within one year category. However, many of our Card Members will revolve their balances, which may extend their repayment period beyond one year for balances outstanding as of December 31, 2019.

(b)Card Member receivables are immediately due upon receipt of Card Member statements, have no stated interest rate and are included within the due within one year category. Receivables due after one year represent modification programs classified as Troubled Debt Restructurings (TDRs), wherein the terms of a receivable have been modified for Card Members that are experiencing financial difficulties and a long-term concession (more than 12 months) has been granted to the borrower.

(c)Card Member and other loans due after one year primarily represent installment loans and TDRs.

A-6

Risk Elements

The following table presents the amounts of non-performing loans and Card Member receivables that are either non-accrual, past due, or restructured, segregated between U.S. and non-U.S. borrowers. Past due loans are loans that are contractually past due 90 days or more as to principal or interest payments. Restructured loans and Card Member receivables are those that meet the definition of a TDR.


December 31, (Millions)	2019		2018		2017		2016		2015
Loans
Non-accrual loans (a)
U.S.	$	346	$	286	$	203	$	173	$	154
Total non-accrual loans	$	346	$	286	$	203	$	173	$	154
Loans contractually 90 days past-due and still accruing interest (b)
U.S.	$	338	$	321	$	273	$	208	$	164
Non-U.S.	$	94	$	69	$	56	$	52	$	52
Total loans contractually 90 days past-due and still accruing interest	$	432	$	390	$	329	$	260	$	216
Restructured loans (c)
U.S.	$	810	$	532	$	367	$	346	$	279
Total restructured loans	$	810	$	532	$	367	$	346	$	279
Total non-performing loans	$	1,588	$	1,208	$	899	$	779	$	649
Card Member receivables
Restructured Card Member receivables (c)
U.S.	$	211	$	128	$	80	$	55	$	33
Total restructured Card Member receivables	$	211	$	128	$	80	$	55	$	33

(a)Non-accrual loans not in modification programs primarily include certain Card Member loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude Card Member loans classified as a TDR.

(b)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR.

(c)In instances where the Card Member is experiencing financial difficulty, we may modify, through various programs, Card Member loans and receivables in order to minimize losses and improve collectability, while providing Card Members with temporary or permanent financial relief. We have classified Card Member loans and receivables in these modification programs as TDRs and continue to classify Card Member accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.” Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is characterized as non-accrual in our TDR disclosures), (ii) placing the Card Member on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the Card Member exits the modification program. Refer to Note 2 to the “Consolidated Financial Statements” for additional information.

A-7

Impact of Non-performing Loans on Interest Income

The following table presents the gross interest income for both non-accrual and restructured loans for 2019 that would have been recognized if such loans had been current in accordance with their original contractual terms and had been outstanding throughout the period or since origination if held for only part of 2019. The table also presents the interest income related to these loans that was actually recognized for the period. These amounts are segregated between U.S. and non-U.S. borrowers.


	2019
Year Ended December 31, (Millions)	U.S.	Non-U.S.	Total
Gross amount of interest income that would have been recorded in accordance with the original contractual terms (a)	152	—	152
Interest income actually recognized	38	—	38
Total interest revenue foregone	114	—	114

(a)We determine the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest rate.

Potential Problem Loans and Card Member Receivables

This disclosure presents outstanding amounts as well as specific reserves for certain loans and Card Member receivables where information about possible credit problems of the borrowers causes management to have serious doubts as to the ability of such borrowers to comply with the present repayment terms. At December 31, 2019, we did not identify any significant potential problem loans or receivables within the Card Member loans and receivables portfolio that were not already included in the “Risk Elements” section.

A-8

Cross-border Outstandings

Cross-border disclosure is based upon the Federal Financial Institutions Examinations Council’s (FFIEC) guidelines governing the determination of cross-border risk.

The following table presents the aggregate amount of cross-border outstandings from borrowers or counterparties for each foreign country that exceeds 1 percent of consolidated total assets for any of the periods reported below.

The table separately presents the amounts of cross-border outstandings by type of borrower including Governments and official institutions, Banks and other financial institutions, Non-Bank Financial Institutions (NBFIs) and Other.


Years Ended December 31, (Millions)				Governments and official institutions			Banks and other financial institutions			NBFIs			Other			Total cross-border outstandings (a)			Gross foreign- office liabilities			Total exposure (net of liabilities)			Cross-border commitments
Australia	2019	$	173		$	177		$	—		$	3,890		$	4,240		$	481		$	3,759		$	6,360
	2018	2			207			—			3,633			3,842			366			3,476			6,948
	2017	—			259			—			3,594			3,853			504			3,349			6,635
Canada	2019	$	427		$	468		$	39		$	2,966		$	3,900		$	491		$	3,409		$	10,490
	2018	346			676			41			2,706			3,769			465			3,304			9,970
	2017	355			992			40			2,730			4,117			1,032			3,085			12,174
United Kingdom	2019	$	113		$	2,254		$	6		$	5,702		$	8,075		$	3,575		$	4,500		$	21,830
	2018	42			1,807			9			5,012			6,870			3,928			2,942			18,234
	2017	68			1,286			86			4,568			6,008			3,884			2,124			15,578
Mexico	2019	$	278		$	351		$	22		$	2,701		$	3,352		$	673		$	2,679		$	1,486
	2018	85			237			40			2,512			2,874			665			2,209			1,254
	2017	85			97			7			2,229			2,418			556			1,862			1,125
Japan	2019	$	321		$	701		$	206		$	4,626		$	5,854		$	4,786		$	1,068		$	5,707
	2018	2			298			226			3,729			4,255			3,890			365			2,924
	2017	4			74			177			3,082			3,337			3,106			231			2,290
Other countries (b)	2019	$	355		$	332		$	7		$	4,554		$	5,248		$	824		$	4,424		$	730
	2018	211			287			11			4,175			4,684			666			4,018			720
	2017	158			187			14			4,268			4,627			928			3,699			682

(a)Total cross-border outstandings include loans, receivables, interest-bearing deposits with other banks, other interest-bearing investments, derivative contracts and other monetary assets.

(b)Cross-border outstandings between 0.75 percent and 1.0 percent of consolidated total assets are included in Other Countries. For comparability, countries that meet the threshold for any year presented are included for all years. Countries included are France, Italy and Germany.

A-9

Summary of Loan Loss Experience – Analysis of the Allowance for Loan Losses

The following table summarizes the changes to our allowance for Card Member loan losses. The table segregates such changes between U.S. and non-U.S. borrowers.


Years Ended December 31, (Millions, except percentages)	2019			2018			2017			2016			2015
Card Member loans Allowance for loan losses at beginning of year
U.S. loans	$	1,899		$	1,507		$	1,068		$	882		$	1,036
Non-U.S. loans	235			199			155			146			165
Total allowance for losses	2,134			1,706			1,223			1,028			1,201

Card Member lending provisions (a)
U.S. loans	2,123			2,003			1,655			1,056			1,032
Non-U.S. loans	339			263			213			179			158
Total Card Member lending provisions	2,462			2,266			1,868			1,235			1,190

Write-offs
U.S. loans	(2,403)			(2,002)			(1,572)			(1,262)			(1,321)
Non-U.S. loans	(357)			(285)			(245)			(222)			(226)
Total write-offs	(2,760)			(2,287)			(1,817)			(1,484)			(1,547)

Recoveries
U.S. loans	466			391			356			325			359
Non-U.S. loans	59			53			53			54			59
Total recoveries	525			444			409			379			418
Net write-offs (b)	(2,235)			(1,843)			(1,408)			(1,105)			(1,129)

Transfer of reserves on HFS loans portfolios
U.S. loans	—			—			—			—			(224)

Other (c)
U.S. loans	—			—			—			67			—
Non-U.S. loans	22			5			23			(2)			(10)
Total other	22			5			23			65			(10)

Allowance for loan losses at end of year
U.S. loans	2,085			1,899			1,507			1,068			882
Non-U.S. loans	298			235			199			155			146
Total allowance for losses	$	2,383		$	2,134		$	1,706		$	1,223		$	1,028

Principal only net write-offs / average Card Member loans outstanding (d) (e)	2.2		%	2.0		%	1.8		%	1.6		%	1.4		%
Principal, interest and fees net write-offs / average Card Member loans outstanding (d) (e)	2.7		%	2.4		%	2.1		%	1.8		%	1.7		%

(a)Refer to Note 3 to the “Consolidated Financial Statements” for a discussion of management’s process for evaluating the allowance for loan losses.

(b)Net write-offs include principal, interest and fees balances.

(c)Includes foreign currency translation adjustments and other adjustments. The year ended December 31, 2016, included reserves of $67 million associated with $265 million of retained Card Member loans reclassified from HFS to held for investment as a result of retaining certain loans in connection with the respective sales of JetBlue and Costco cobrand card portfolios.

(d)The net write-off rate presented is on a worldwide basis and is based on principal losses only (i.e., excluding interest and fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and fees is also presented.

(e)Average Card Member loans outstanding are based on month-end balances.

A-10

The following table summarizes the changes to our allowance for other loan losses. The table segregates such changes between U.S. and non-U.S. borrowers.


Years Ended December 31, (Millions, except percentages)	2019			2018			2017			2016			2015
Other loans Allowance for loan losses at beginning of year
U.S. loans	$	122		$	78		$	39		$	17		$	8
Non-U.S. loans	2			2			3			3			4
Total allowance for losses	124			80			42			20			12

Provisions for other loan losses (a)
U.S. loans	124			121			71			56			21
Non-U.S. loans	1			1			1			1			1
Total provisions for other loan losses	125			122			72			57			22

Write-offs
U.S. loans	(111)			(82)			(37)			(39)			(15)
Non-U.S. loans	(2)			(2)			(3)			(2)			(3)
Total write-offs	(113)			(84)			(40)			(41)			(18)

Recoveries
U.S. loans	15			5			5			5			3
Non-U.S. loans	1			1			1			1			1
Total recoveries	16			6			6			6			4
Net write-offs	(97)			(78)			(34)			(35)			(14)

Allowance for loan losses at end of year
U.S. loans	150			122			78			39			17
Non-U.S. loans	2			2			2			3			3
Total allowance for losses	$	152		$	124		$	80		$	42		$	20

Net write-offs/average other loans outstanding (b)	2.3		%	2.4		%	1.7		%	2.9		%	1.3		%

(a)Provisions for other loan losses are determined based on a specific identification methodology and models that analyze specific portfolio statistics.

(b)The net write-off rate presented is on a worldwide basis and is based on write-offs of principal, interest and fees. Average other loans outstanding are based on month-end balances.

A-11

The following table summarizes the changes to our allowance for Card Member receivables losses. The table segregates such changes between U.S. and non-U.S. borrowers.


Years Ended December 31, (Millions, except percentages)	2019		2018		2017		2016		2015
Card Member receivables Allowance for losses at beginning of year U.S. receivables
Consumer	$	299	$	277	$	266	$	268	$	276
Commercial	70		73		53		51		53
Total U.S. receivables	369		350		319		319		329
Non-U.S. receivables
Consumer	135		119		95		93		93
Commercial	69		52		53		50		43
Total non-U.S. receivables	204		171		148		143		136
Total allowance for losses	573		521		467		462		465

Provisions for losses (a)
U.S. receivables
Consumer	553		471		413		366		420
Commercial	74		92		114		69		76
Total U.S. provisions	627		563		527		435		496
Non-U.S. receivables
Consumer	283		245		201		176		169
Commercial	53		129		67		85		72
Total non-U.S. provisions	336		374		268		261		241
Total provisions for losses	963		937		795		696		737

Write-offs
U.S. receivables
Consumer	(722)		(659)		(633)		(637)		(698)
Commercial	(131)		(151)		(139)		(112)		(123)
Total U.S. write-offs	(853)		(810)		(772)		(749)		(821)
Non-U.S. receivables
Consumer	(324)		(278)		(233)		(218)		(204)
Commercial	(102)		(138)		(97)		(101)		(89)
Total non-U.S. write-offs	(426)		(416)		(330)		(319)		(293)
Total write-offs	$	(1,279)	$	(1,226)	$	(1,102)	$	(1,068)	$	(1,114)

(a)Refer to Note 3 to the “Consolidated Financial Statements” for a discussion of management’s process for evaluating the allowance for receivable losses.

A-12


Years Ended December 31, (Millions, except percentages)	2019			2018			2017			2016			2015
Card Member receivables Recoveries U.S. receivables
Consumer	$	214		$	210		$	233		$	269		$	271
Commercial	49			56			45			43			45
Total U.S. recoveries	263			266			278			312			316
Non-U.S. receivables
Consumer	79			70			63			59			57
Commercial	37			31			25			23			28
Total non-U.S. recoveries	116			101			88			82			85
Total recoveries	379			367			366			394			401
Net write-offs (a)	(900)			(859)			(736)			(674)			(713)

Other (b)
U.S. receivables
Consumer	—			—			(2)			—			(1)
Commercial	—			—			—			2			—
Total U.S. other	—			—			(2)			2			(1)
Non-U.S. receivables
Consumer	(15)			(21)			(7)			(15)			(22)
Commercial	(2)			(5)			4			(4)			(4)
Total non-U.S. other	(17)			(26)			(3)			(19)			(26)
Total other	(17)			(26)			(5)			(17)			(27)

Allowance for losses at end of year
U.S. receivables
Consumer	344			299			277			266			268
Commercial	62			70			73			53			51
Total U.S. receivables	406			369			350			319			319
Non-U.S. receivables
Consumer	158			135			119			95			93
Commercial	55			69			52			53			50
Total non-U.S. receivables	213			204			171			148			143
Total allowance for losses	$	619		$	573		$	521		$	467		$	462

Net write-offs / average Card Member receivables outstanding (c) (d)	1.6		%	1.6		%	1.5		%	1.5		%	1.6		%

(a)Net write-offs include principal and fees balances.

(b)Includes foreign currency translation adjustments and other adjustments. Additionally, 2015 included the impact of transfer of the HFS receivables portfolio, which was not significant.

(c)The net write-off rate presented is on a worldwide basis and is based on write-offs of principal and fees.

(d)Average Card Member receivables outstanding are based on month-end balances.

A-13

Allocation of Allowance for Losses

The following table presents an allocation of the allowance for loans and Card Member receivables and the percentage of allowance for losses on loans and Card Member receivables in each category, to the total allowance, respectively, by customer type. The table segregates allowance for losses on loans and Card Member receivables between U.S. and non-U.S. borrowers.


December 31,	2019						2018						2017						2016		2015
(Millions, except percentages) Allowance for losses at end of year applicable to	Amount		Percentage (a)		Amount		Percentage (a)		Amount		Percentage (a)		Amount		Percentage (a)		Amount		Percentage (a)
Loans U.S. loans
Card Member	$	2,085	82	%	$	1,899	84	%	$	1,507	85	%	$	1,068	85	%	$	882	84	%
Other	150		6		122		5		78		4		39		3		17		2
Non-U.S. loans
Card Member	298		12		235		11		199		11		155		12		146		14
Other	2		—		2		—		2		—		3		—		3		—
	$	2,535	100	%	$	2,258	100	%	$	1,786	100	%	$	1,265	100	%	$	1,048	100	%

Card Member receivables
U.S. Card Member receivables
Consumer	$	344	56	%	$	299	52	%	$	277	53	%	$	266	57	%	$	268	58	%
Commercial	62		10		70		12		73		14		53		11		51		11
Non-U.S. Card Member receivables
Consumer	158		25		135		24		119		23		95		21		93		20
Commercial	55		9		69		12		52		10		53		11		50		11
	$	619	100	%	$	573	100	%	$	521	100	%	$	467	100	%	$	462	100	%

(a)Percentage of allowance for losses on loans and Card Member receivables in each category to the total allowance.

Time Certificates of Deposit of $100,000 or More

The following table presents the amount of time certificates of deposit of $100,000 or more issued by us in our U.S. offices, further segregated by time remaining until maturity.


	By remaining maturity as of December 31, 2019
(Millions)	3 months or less		Over 3 months but within 6 months		Over 6 months but within 12 months		Over 12 months		Total
U.S. time certificates of deposit ($100,000 or more)	$	194	$	113	$	288	$	690	$	1,285

As of December 31, 2019, time certificates of deposit and other time deposits in amounts of $100,000 or more issued by non-U.S. offices was $7 million.

A-14

Previous: Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES