AMERICAN EXPRESS CREDIT CORP

CIK:0000004969|SEC Filings

Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Discount revenue earned from purchased Card Member receivables and Card Member loans	$ 77	$ 38	$ 212	$ 562
Interest income from affiliates and other	88	19	270	66
Finance revenue	14	19	47	63
Total revenues	179	76	529	691
Expenses
Provisions for credit losses	29	(12)	(9)	264
Interest expense	25	37	82	169
Interest expense to affiliates	4	5	10	70
Other, net	3	0	9	(14)
Total expenses	61	30	92	489
Pretax income	118	46	437	202
Income tax provision	29	20	72	72
Net income	$ 89	$ 26	$ 365	$ 130

Consolidated Statements of Cash Flows - USD ($)
$ in Millions

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Cash Flows from Operating Activities

Net income

$ 365

$ 130

Adjustments to reconcile net income to net cash provided by operating activities:

Provisions for credit losses

(9)

264

Amortization of underwriting expense

Deferred taxes

(31)

Changes in operating assets and liabilities:

Interest, taxes and other amounts due to/from affiliates

(11)

Other operating assets and liabilities

(294)

428

Net cash provided by operating activities

141

790

Cash Flows from Investing Activities

Net (increase) decrease in Card Member receivables and Card Member loans

^[1]

(1,560)

9,081

Net decrease in loans to affiliates and other

^[1]

1,690

Net increase in due to/from affiliates

479

1,854

Net cash provided by investing activities

609

10,983

Cash Flows from Financing Activities

Net decrease in short-term debt

(3,216)

Net increase in short-term debt to affiliates

569

2,344

Proceeds from long-term debt

Principal payments of long-term debt

(1,770)

(6,600)

Proceeds from long-term debt to affiliates

663

8,006

Principal payments of long-term debt to affiliates

^[1]

(150)

(11,320)

Net cash used in financing activities

(668)

(10,786)

Effect of foreign currency exchange rates on cash and cash equivalents

(3)

Net increase in cash and cash equivalents

984

Cash and cash equivalents at beginning of period

601

149

Cash and cash equivalents at end of period

$ 684

$ 1,133

[1]

During the nine months ended September 30, 2020, American Express Travel Related Services Company, Inc. (TRS) removed U.S. Consumer and Small Business Card Member receivables from the American Express Issuance Trust II (the Charge Trust) and substantially replaced them with U.S. Corporate Card Member receivables. To effect this change, on January 7, 2020, Credco sold $5.2 billion of U.S. Corporate Card Member receivables to TRS. Settlement of this transaction was undertaken through borrowings from American Express Company.

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 684	$ 601
Loans to affiliates and other	9,151	10,890
Due from affiliates	2	6
Other assets	253	244
Total assets	24,149	24,308
Liabilities
Short-term debt to affiliates	9,138	8,569
Long-term debt	5,210	7,037
Long-term debt to affiliates	1,319	822
Total debt	15,667	16,428
Due to affiliates	4,847	4,344
Accrued interest and other liabilities	419	641
Total liabilities	20,933	21,413
Shareholder’s Equity
Common stock, $0.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares as of September 30, 2021 and December 31, 2020	0	0
Additional paid-in capital	161	161
Retained earnings	4,198	3,833
Accumulated other comprehensive income (loss)
Foreign currency translation adjustments, net of tax of: 2021, $26; 2020, $5	(1,143)	(1,099)
Total accumulated other comprehensive income (loss)	(1,143)	(1,099)
Total shareholder’s equity	3,216	2,895
Total liabilities and shareholder’s equity	24,149	24,308
Card Member Receivables
Assets
Card Member loans, less reserves for credit losses	13,608	12,087
Card Member Loans
Assets
Card Member loans, less reserves for credit losses	$ 451	$ 480