NOTE 9

Debt

Short-Term Borrowings

The Company’s short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows:

For floating-rate issuances, the stated interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2016 and 2015.
Average commercial paper outstanding was $491 million and $943 million in 2016 and 2015, respectively.
Includes interest-bearing overdrafts with banks of $369 million and $410 million as of December 31, 2016 and 2015, respectively. In addition, balances include certain book overdrafts (i.e., primarily timing differences arising in the ordinary course of business), short-term borrowings from banks, as well as interest-bearing amounts due to merchants in accordance with merchant service agreements.

The Company maintained a 2-year committed, revolving, secured borrowing facility that gives the Company the right to sell up to $2.0 billion face amount of eligible certificates issued from the Lending Trust at any time through September 17, 2018. As of December 31, 2016 the Company had nil outstanding under this facility. As of December 31, 2015, the Company had $100 million drawn on this facility with an original contractual maturity of less than 1-year.

The Company paid $8.6 million and $6.7 million in fees to maintain the secured borrowing facility in 2016 and 2015, respectively. The committed facility does not contain a material adverse change clause, which might otherwise preclude borrowing under the facility, nor is it dependent on the Company’s credit rating.

Long-term Debt

The Company’s long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows:

	2016								2015
(Millions, except percentages)	Original Contractual Maturity Dates	Outstanding Balance^(a)		Year-End Stated Rate on Debt	^(b)	Year-End Effective Interest Rate with Swaps	^(b)(c)	Outstanding Balance		^(a)	Year-End Stated Rate on Debt^(b)	Year-End Effective Interest Rate with Swaps	^(b)(c)
American Express Company
(Parent Company only)
Fixed Rate Senior Notes	2017-2042	$	6,932	5.13	%	4.24	%	$	7,546		5.15 ^%	4.25	%
Floating Rate Senior Notes	2018		850	1.51		―			850		0.97	―
Subordinated Notes	2024		598	3.63		1.92			1,347		5.39	4.47
American Express Credit Corporation
Fixed Rate Senior Notes	2017-2021		16,201	1.98		1.44			16,469		2.16	1.28
Floating Rate Senior Notes	2017-2020		4,350	1.52		―			5,300		0.98	―
American Express Centurion Bank
Fixed Rate Senior Notes	2017		1,306	5.99		4.83			1,319		5.99	4.75
Floating Rate Senior Notes	2018		125	1.26		―			125		0.81	―
American Express Bank, FSB
Fixed Rate Senior Notes	2017		1,000	6.00		―			1,000		6.00	―
Floating Rate Senior Notes	2017		300	0.96		―			300		0.62	―
American Express Lending Trust
Fixed Rate Senior Notes	2017		3,500	1.41		―			4,000		1.35	―
Floating Rate Senior Notes	2017-2019		7,025	1.20		―			7,025		0.82	―
Floating Rate Subordinated Notes	2017-2019		316	1.34		―			316		0.97	―
American Express Charge Trust II
Floating Rate Senior Notes	2018		4,200	1.12		―			2,200		0.67	―
Floating Rate Subordinated Notes	2018		87	1.34		―			87		0.97	―
Other
Fixed Rate Instruments^(d)	2021-2033		24	5.62		―			29		5.62	―
Floating Rate Borrowings	2017-2019		247	0.44		―	%		244		0.66	―	%
Unamortized Underwriting Fees			(71)						(96)
Total Long-Term Debt		$	46,990	2.39	%			$	48,061		2.44 ^%

The outstanding balances include (i) unamortized discount and premium, (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. Under fair value hedge accounting, the outstanding balances on these fixed-rate notes are adjusted to reflect the impact of changes in fair value due to changes in interest rates. Refer to Note 14 for more details on the Company’s treatment of fair value hedges.
For floating-rate issuances, the stated and effective interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2016 and 2015.
Effective interest rates are only presented when swaps are in place to hedge the underlying debt.
Includes $24 million and $29 million as of December 31, 2016 and 2015, respectively, related to capitalized lease transactions.

As of December 31, 2015, the Company had $750 million principal outstanding of Subordinated Debentures that accrued interest at an annual rate of 6.8 percent. At the Company’s option, these Subordinated Debentures were redeemed for cash on September 1, 2016 at 100 percent of the principal amount.

Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2016 were as follows:

(Millions)		2017		2018		2019	2020		2021		Thereafter		Total
American Express Company (Parent Company only)	$	1,500	$	3,850	$	641	$	―	$	―	$	3,147	$	9,138
American Express Credit Corporation		4,900		3,624		5,150		4,150		2,794		―		20,618
American Express Centurion Bank		1,300		125		―		―		―		―		1,425
American Express Bank, FSB		1,300		―		―		―		―		―		1,300
American Express Lending Trust		6,639		2,886		1,317		―		―		―		10,842
American Express Charge Trust II		―		4,287		―		―		―		―		4,287
Other		85		127		35		―		13		11		271
	$	15,724	$	14,899	$	7,143	$	4,150	$	2,807	$	3,158	$	47,881
Unamortized Underwriting Fees														(71)
Unamortized Discount and Premium														(844)
Impacts due to Fair Value Hedge Accounting														24
Total Long-Term Debt													$	46,990

The Company maintained a $3.0 billion bank line of credit, with $3.0 billion undrawn as of December 31, 2016 and 2015. These undrawn amounts support contingent funding needs. The availability of the credit line is subject to the Company’s compliance with certain financial covenants, principally the maintenance by American Express Credit Corporation (Credco) of a 1.25 ratio of combined earnings and fixed charges, to fixed charges. As of December 31, 2016 and 2015, the Company was not in violation of any of its debt covenants.

Additionally, the Company maintained a 3-year committed, revolving, secured borrowing facility that gives the Company the right to sell up to $3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 16, 2018. As of December 31, 2016 and 2015, $3.0 billion and $1.0 billion, respectively, were drawn on this facility.

The Company paid $11.5 million and $35.1 million in fees to maintain these lines in 2016 and 2015, respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are they dependent on the Company’s credit rating.

The Company paid total interest, primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits, of $1.7 billion, $1.6 billion and $1.7 billion in 2016, 2015 and 2014, respectively.