2021 Q4 Form 10-Q Financial Statement

#000000496221000060 Filed on October 22, 2021

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2020 Q3
Revenue $12.25B $10.93B $8.751B
YoY Change 30.97% 24.88% -20.37%
Cost Of Revenue $3.799B $3.708B $2.465B
YoY Change 37.74% 50.43% -31.01%
Gross Profit $8.448B $7.329B $6.488B
YoY Change 25.19% 12.96% -17.0%
Gross Profit Margin 68.98% 67.07% 74.14%
Selling, General & Admin $5.633B $4.955B $4.228B
YoY Change 22.7% 17.19% -2.85%
% of Gross Profit 66.68% 67.61% 65.17%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $419.0M $442.0M $404.0M
YoY Change -2.1% 9.41% 34.67%
% of Gross Profit 4.96% 6.03% 6.23%
Operating Expenses $6.139B $5.011B $5.124B
YoY Change 25.54% -2.21% -8.11%
Operating Profit $2.309B $2.318B $1.364B
YoY Change 24.27% 69.94% -39.13%
Interest Expense -$3.000M $307.0M $450.0M
YoY Change -31.78% -48.69%
% of Operating Profit -0.13% 13.24% 32.99%
Other Income/Expense, Net
YoY Change
Pretax Income $2.306B $2.450B $1.364B
YoY Change 24.11% 79.62% -39.81%
Income Tax $587.0M $624.0M $291.0M
% Of Pretax Income 25.46% 25.47% 21.33%
Net Earnings $1.719B $1.826B $1.073B
YoY Change 19.54% 70.18% -38.86%
Net Earnings / Revenue 14.04% 16.71% 12.26%
Basic Earnings Per Share $2.27 $1.31
Diluted Earnings Per Share $2.235M $2.27 $1.30
COMMON SHARES
Basic Shares Outstanding 774.6M shares 786.0M shares 804.0M shares
Diluted Shares Outstanding 787.0M shares 805.0M shares

Balance Sheet

Concept 2021 Q4 2021 Q3 2020 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $21.32B $27.33B $32.92B
YoY Change -33.81% -16.98% 35.76%
Cash & Equivalents $22.03B $27.92B $35.63B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $53.58B $48.73B $40.39B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $74.90B $76.06B $73.31B
YoY Change -0.98% 3.75% -11.79%
LONG-TERM ASSETS
Property, Plant & Equipment $4.988B $4.960B $4.835B
YoY Change -0.54% 2.59% 2.55%
Goodwill $3.804B
YoY Change -1.25%
Intangibles
YoY Change
Long-Term Investments $2.779B $9.697B $22.55B
YoY Change -87.25% -57.0% 166.53%
Other Assets $1.124B $475.0M $2.597B
YoY Change -2.01% -81.71% 138.69%
Total Long-Term Assets $113.7B $107.9B $113.7B
YoY Change -1.48% -5.06% 2.52%
TOTAL ASSETS
Total Short-Term Assets $74.90B $76.06B $73.31B
Total Long-Term Assets $113.7B $107.9B $113.7B
Total Assets $188.5B $184.0B $187.0B
YoY Change -1.28% -1.6% -3.61%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.57B $9.641B $8.232B
YoY Change 11.97% 17.12% -36.02%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $2.243B $2.253B $1.716B
YoY Change 19.44% 31.29% -39.11%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $97.20B $96.22B $95.41B
YoY Change -1.02% 0.85% 7.22%
LONG-TERM LIABILITIES
Long-Term Debt $38.68B $34.48B $44.78B
YoY Change -9.96% -22.99% -23.42%
Other Long-Term Liabilities $30.50B $29.13B $25.20B
YoY Change 11.98% 15.58% 6.33%
Total Long-Term Liabilities $69.17B $63.62B $69.98B
YoY Change -1.44% -9.1% -14.84%
TOTAL LIABILITIES
Total Short-Term Liabilities $97.20B $96.22B $95.41B
Total Long-Term Liabilities $69.17B $63.62B $69.98B
Total Liabilities $166.4B $159.8B $165.4B
YoY Change -1.19% -3.36% -3.37%
SHAREHOLDERS EQUITY
Retained Earnings $13.47B $14.83B $12.76B
YoY Change -2.62% 16.22% -6.52%
Common Stock $153.0M $156.0M $161.0M
YoY Change -4.97% -3.11% -2.42%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares 2.500M shares
Shareholders Equity $22.18B $24.43B $21.87B
YoY Change
Total Liabilities & Shareholders Equity $188.5B $184.3B $187.3B
YoY Change -1.47% -1.6% -3.57%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2020 Q3
OPERATING ACTIVITIES
Net Income $1.719B $1.826B $1.073B
YoY Change 19.54% 70.18% -38.86%
Depreciation, Depletion And Amortization $419.0M $442.0M $404.0M
YoY Change -2.1% 9.41% 34.67%
Cash From Operating Activities $5.008B $4.172B $2.180B
YoY Change 43.09% 91.38% -309.41%
INVESTING ACTIVITIES
Capital Expenditures -$471.0M -$470.0M -$353.0M
YoY Change 8.03% 33.14% -5.61%
Acquisitions
YoY Change
Other Investing Activities -$10.85B -$746.0M -$4.604B
YoY Change 111.89% -83.8% 1114.78%
Cash From Investing Activities -$11.32B -$1.216B -$4.957B
YoY Change 103.74% -75.47% 558.3%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 365.0M -5.882B -3.602B
YoY Change -153.21% 63.3% 805.03%
NET CHANGE
Cash From Operating Activities 5.008B 4.172B 2.180B
Cash From Investing Activities -11.32B -1.216B -4.957B
Cash From Financing Activities 365.0M -5.882B -3.602B
Net Change In Cash -5.949B -2.926B -6.379B
YoY Change 116.88% -54.13% 191.01%
FREE CASH FLOW
Cash From Operating Activities $5.008B $4.172B $2.180B
Capital Expenditures -$471.0M -$470.0M -$353.0M
Free Cash Flow $5.479B $4.642B $2.533B
YoY Change 39.2% 83.26% -479.76%

Facts In Submission

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<div style="margin-bottom:10pt;margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The CECL methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&amp;S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses. </span></div><div style="margin-bottom:10pt;margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&amp;S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD), and future recoveries for each month of the R&amp;S Period. Beyond the R&amp;S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates.</span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">PD models are used to estimate the likelihood an account will be written-off. </span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors.</span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions. </span></div><div style="margin-bottom:10pt;margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses.</span></div><div style="margin-bottom:10pt;margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Future economic conditions that are incorporated over the R&amp;S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios and applies judgment to weight them in order to reflect the uncertainty surrounding these scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models.</span></div><div style="margin-bottom:10pt;margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions.</span></div><div style="margin-bottom:10pt;margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually using a discounted cash flow model. </span></div>Loans and receivable balances are written off when we consider amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due for pay in full or revolving loans and 120 days past due for term loans. Loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification.
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us-gaap Earnings Per Share Basic
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EarningsPerShareDiluted
2.27
CY2020Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.30
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
7.82
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
2.01
CY2021Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
20000000 shares
CY2021Q3 us-gaap Preferred Stock Redemption Price Per Share
PreferredStockRedemptionPricePerShare
1000000
CY2021Q3 axp Depositary Shares Redemption Amount
DepositarySharesRedemptionAmount
1000
CY2021Q3 us-gaap Preferred Stock Redemption Premium
PreferredStockRedemptionPremium
9000000 USD
CY2021Q3 us-gaap Noninterest Income
NoninterestIncome
8934000000 USD
CY2021Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
7139000000 USD
CY2021Q3 us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
2301000000 USD
CY2021Q3 us-gaap Interest Expense
InterestExpense
307000000 USD
CY2021Q3 us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
10928000000 USD
CY2021Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
2450000000 USD
CY2021Q3 us-gaap Assets
Assets
184000000000 USD
us-gaap Noninterest Income
NoninterestIncome
24593000000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
19555000000 USD
us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
6633000000 USD
us-gaap Interest Expense
InterestExpense
991000000 USD
us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
30235000000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
8383000000 USD
CY2020Q3 us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
2324000000 USD
CY2021Q3 us-gaap Assets
Assets
184000000000 USD
CY2020Q3 us-gaap Noninterest Income
NoninterestIncome
6877000000 USD
CY2020Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
5380000000 USD
CY2020Q3 us-gaap Interest Expense
InterestExpense
450000000 USD
CY2020Q3 us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
8751000000 USD
CY2020Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
1364000000 USD
CY2020Q3 us-gaap Assets
Assets
187000000000 USD
us-gaap Noninterest Income
NoninterestIncome
20648000000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
16033000000 USD
us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
7796000000 USD
us-gaap Interest Expense
InterestExpense
1708000000 USD
us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
26736000000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
2438000000 USD
CY2020Q3 us-gaap Assets
Assets
187000000000 USD

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