Fair Values (Tables)

9 Months Ended

Sep. 30, 2021

Fair value assets and liabilities measured on recurring basis

The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of September 30, 2021 and December 31, 2020:


	2021								2020
(Millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Investment securities: (a)
Equity securities	$	102	$	101	$	1	$	—	$	81	$	80	$	1	$	—
Debt securities (b)	9,487		—		9,462		25		21,550		—		21,550		—
Derivatives, gross (a)	531		—		531		—		629		—		629		—
Total Assets	10,120		101		9,994		25		22,260		80		22,180		—
Liabilities:
Derivatives, gross (a)	119		—		119		—		702		—		702		—
Total Liabilities	$	119	$	—	$	119	$	—	$	702	$	—	$	702	$	—

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

(b)Level 3 fair value amount represents investments in debt securities issued by Community Development Financial Institutions.

Estimated fair value of financial assets and financial liabilities

The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of September 30, 2021 and December 31, 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2021 and December 31, 2020, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented.


	Carrying Value		Corresponding Fair Value Amount
2021 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	28	$	28	$	26	$	2	$	—
Other financial assets (b)	51		51		—		51		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	76		79		—		—		79

Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	103		103		—		103		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	5		5		—		5		—
Long-term debt (c)	$	34	$	36	$	—	$	36	$	—


	Carrying Value		Corresponding Fair Value Amount
2020 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents (a)	$	33	$	33	$	31	$	2	$	—
Other financial assets (b)	46		46		—		46		—
Financial assets carried at other than fair value
Card Member and Other loans, less reserves (c)	71		75		—		—		75

Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	101		101		—		101		—
Financial liabilities carried at other than fair value
Certificates of deposit (d)	8		8		—		8		—
Long-term debt (c)	$	43	$	45	$	—	$	45	$	—

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

(b)Balances include Card Member receivables (including fair values of Card Member receivables of $5.1 billion and $4.2 billion held by a consolidated VIE as of September 30, 2021 and December 31, 2020, respectively), other receivables and other miscellaneous assets.

(c)Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $24.7 billion and $25.8 billion as of September 30, 2021 and December 31, 2020, respectively, and the fair values of Long-term debt were $9.2 billion and $13.0 billion as of September 30, 2021 and December 31, 2020, respectively.

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