American Express Co 10-Q for FY2022 Q1

American Express Co (AXP)

10-Q 2022-04-22 For: 2022-03-31

Added on April 09, 2026

About this 10-Q

American Express Co filed this 10-Q on April 22, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $11.74B; up 29.5% from $9.06B a year earlier
Net income: $2.1B; down 6.1% from net income of $2.24B a year earlier
Diluted EPS: $2.73; down 0.4% from $2.74 a year earlier

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares (par value $0.20 per share)	AXP	New York Stock Exchange


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


Class	Outstanding at April 18, 2022
Common Shares (par value $0.20 per share)	753,060,278	Shares


	As of or for the Three Months Ended March 31,						Change 2022 vs. 2021
(Millions, except percentages, per share amounts and where indicated)	2022			2021
Selected Income Statement Data
Total revenues net of interest expense	$	11,735		$	9,064		$	2,671	29	%
Provisions for credit losses	(33)			(675)			642		95
Expenses	9,056			6,746			2,310		34
Pretax income	2,712			2,993			(281)		(9)
Income tax provision	613			758			(145)		(19)
Net income	2,099			2,235			(136)		(6)
Earnings per common share — diluted (a)	$	2.73		$	2.74		$	(0.01)	—	%

Common Share Statistics (b)
Cash dividends declared per common share	$	0.52		$	0.43		$	0.09	21	%
Average common shares outstanding:
Basic	757			804			(47)		(6)	%
Diluted	758			805			(47)		(6)	%

Selected Metrics and Ratios
Network volumes (Billions)	$	350.3		$	269.3		$	81	30	%
Return on average equity (c)	37.7		%	37.7		%
Net interest income divided by average Card Member loans	10.1		%	10.4		%
Net interest yield on average Card Member loans (d)	10.5		%	11.3		%
Effective tax rate	22.6		%	25.3		%
Common Equity Tier 1	10.4		%	14.8		%

Selected Balance Sheet Data ($ in millions)
Cash and cash equivalents	$	27,678		$	40,280		$	(12,602)	(31)	%
Card Member receivables	53,164			42,002			11,162		27
Card Member loans	88,832			70,100			18,732		27
Customer deposits	90,917			89,193			1,724		2
Long-term debt	$	38,337		$	42,019		$	(3,682)	(9)	%

# Denotes a variance of 100 percent or more


	Three Months Ended March 31,				Change 2022 vs. 2021
(Millions, except percentages)	2022		2021
Discount revenue	$	6,835	$	5,001	$	1,834	37%
Net card fees (a)	1,423		1,253		170		14
Service fees and other revenue	906		638		268		42
Processed revenue	372		342		30		9
Total non-interest revenues	9,536		7,234		2,302		32
Total interest income	2,520		2,192		328		15
Total interest expense	321		362		(41)		(11)
Net interest income	2,199		1,830		369		20
Total revenues net of interest expense	$	11,735	$	9,064	$	2,671	29%


	As of or for the Three Months Ended March 31,						Change 2022 vs. 2021
	2022			2021
Network volumes: (billions)
U.S.	$	244.5		$	186.2		31	%
Outside the U.S.	105.8			83.1			27
Total	$	350.3		$	269.3		30
Billed business	$	301.0		$	225.4		34
Processed volumes	49.3			43.9			12
Total	$	350.3		$	269.3		30
Cards-in-force: (millions)
U.S.	57.7			54.1			7
Outside the U.S.	66.9			58.8			14
Total	124.6			112.9			10
Proprietary	72.8			69.0			6


Basic cards-in-force: (millions)
U.S.	45.4			42.4			7
Outside the U.S.	57.9			49.8			16
Total	103.3			92.2			12
Average proprietary basic Card Member spending: (dollars)
U.S.	$	5,965		$	4,723		26
Outside the U.S.	4,165			3,170			31
Worldwide Average	$	5,452		$	4,270		28
Average discount rate	2.32		%	2.26		%
Average fee per card (dollars)(a)	$	79		$	73		8	%


	Three Months Ended March 31, 2022
	Year over Year Percentage Increase (Decrease)		Year over Year Percentage Increase (Decrease) Assuming No Changes in FX Rates (a)
Worldwide
Network volumes	30	%	32	%
Total billed business	34		35
Consumer billed business	37		39
Commercial billed business	30		32
Processed volumes	12		15

U.S.
Network volumes	31
Total billed business	33
Consumer billed business	38
Commercial billed business	30

Outside the U.S.
Network volumes	27		33
Total billed business	34		41
Consumer billed business	36		43
Commercial billed business	32		39
Asia Pacific, Australia & New Zealand network volumes	13		19
Latin America, Canada & Caribbean network volumes	39		40
Europe, the Middle East & Africa network volumes	50		57

Merchant Industry Metrics
Worldwide billed business
G&S-related (77% of worldwide billed business)	19		21
T&E-related (23% of worldwide billed business)	119		121
Airline-related (5% of worldwide billed business)	241		246	%
U.S. billed business
G&S-related (77% of U.S. billed business)	20
T&E-related (23% of U.S. billed business)	110
Airline-related (5% of U.S. billed business)	217	%


	As of or for the Three Months Ended March 31,						Change 2022 vs. 2021
(Millions, except percentages and where indicated)	2022			2021
Worldwide Card Member loans:
Card Member loans: (billions)
U.S.	$	77.2		$	61.6		25	%
Outside the U.S.	11.6			8.5			36
Total	$	88.8		$	70.1		27
Credit loss reserves:
Beginning balance	$	3,305		$	5,344		(38)
Provisions - principal, interest and fees	(111)			(573)			81
Net write-offs — principal less recoveries	(165)			(241)			(32)
Net write-offs — interest and fees less recoveries	(50)			(63)			(21)
Other (a)	2			—			—
Ending balance	$	2,981		$	4,467		(33)
% of loans	3.4		%	6.4		%
% of past due	455		%	723		%
Average loans (billions)	$	86.8		$	70.7		23
Net write-off rate — principal only (b)	0.8		%	1.4		%
Net write-off rate — principal, interest and fees (b)	1.0			1.7
30+ days past due as a % of total	0.7		%	0.9		%

Worldwide Card Member receivables:
Card Member receivables: (billions)
U.S.	$	38.2		$	30.1		27
Outside the U.S.	15.0			11.9			26
Total	$	53.2		$	42.0		27
Credit loss reserves:
Beginning balance	$	64		$	267		(76)
Provisions - principal and fees	80			(10)			#
Net write-offs - principal and fees less recoveries	(67)			(53)			26
Other (a)	(1)			(2)			(50)
Ending balance	$	76		$	202		(62)	%
% of receivables	0.1		%	0.5		%
Net write-off rate — principal and fees (c)	0.5		%	0.5		%


	Three Months Ended March 31,
(Millions, except percentages and where indicated)	2022			2021
Net interest income	$	2,199		$	1,830
Exclude:
Interest expense not attributable to our Card Member loan portfolio (a)	158			236
Interest income not attributable to our Card Member loan portfolio (b)	(105)			(96)
Adjusted net interest income (c)	$	2,252		$	1,970
Average Card Member loans (billions)	$	86.8		$	70.7
Net interest income divided by average Card Member loans (c)	10.1		%	10.4		%
Net interest yield on average Card Member loans (c)	10.5		%	11.3		%


	Three Months Ended March 31,				Change
(Millions, except percentages)	2022		2021		2022 vs. 2021
Revenues
Non-interest revenues	$	5,049	$	3,809	$	1,240	33%
Interest income	2,040		1,808		232		13
Interest expense	192		188		4		2
Net interest income	1,848		1,620		228		14
Total revenues net of interest expense	6,897		5,429		1,468		27
Provisions for credit losses	(55)		(503)		448		89
Total revenues net of interest expense after provisions for credit losses	6,952		5,932		1,020		17



Total expenses	5,217		3,787		1,430		38
Pretax segment income	$	1,735	$	2,145	$	(410)	(19)%


	As of or for the Three Months Ended March 31,						Change 2022 vs 2021
(Millions, except percentages and where indicated)	2022			2021
Billed business (billions)	$	135.7		$	104.0		30	%
Proprietary cards-in-force	15.8			14.5			9
Average Card Member spending (dollars)	$	8,682		$	7,159		21
Total segment assets (billions)	$	55.6		$	42.4		31
GSBS Card Member loans:
Total loans (billions)	$	19.3		$	13.8		40
Average loans (billions)	$	18.2		$	13.4		36
Net write-off rate - principal only (a)	0.6		%	1.0		%
Net write-off rate - principal, interest and fees (a)	0.7		%	1.2		%
30+ days past due as a % of total	0.6		%	0.6		%
Calculation of Net Interest Yield on Average Card Member Loans:
Net interest income	$	314		$	220
Exclude:
Interest expense not attributable to our Card Member loan portfolio (b)	91			93
Interest income not attributable to our Card Member loan portfolio (c)	(16)			(22)
Adjusted net interest income (d)	$	389		$	291
Average Card Member loans (billions)	$	18.3		$	13.5
Net interest income divided by average Card Member loans (d)	6.9		%	6.5		%
Net interest yield on average Card Member loans (d)	8.6		%	8.7		%
Card Member receivables:
Total receivables (billions)	$	32.5		$	24.8		31
Net write-off rate - principal and fees (e)	0.5		%	0.5		%
GCP Card Member receivables:
Total receivables (billions)	$	14.5		$	10.5		38
90+ days past billing as a % of total (e)	0.3		%	0.4		%
Net write-off rate - principal and fees (e)	0.2		%	0.4		%
GSBS Card Member receivables:
Total receivables (billions)	$	18.0		$	14.3		26	%
Net write-off rate - principal only (a)	0.7		%	0.5		%
Net write-off rate - principal and fees (a)	0.8		%	0.5		%
30+ days past due as a % of total	0.9		%	0.6		%


	Effective Minimum (a)		Ratios as of March 31, 2022
Risk-Based Capital
Common Equity Tier 1	7.0	%
American Express Company			10.4	%
American Express National Bank			12.6
Tier 1	8.5
American Express Company			11.4
American Express National Bank			12.6
Total	10.5
American Express Company			12.8
American Express National Bank			14.6
Tier 1 Leverage	4.0	%
American Express Company			10.4
American Express National Bank			10.9	%


American Express Company ($ in Billions)	March 31, 2022
Risk-Based Capital
Common Equity Tier 1	$	17.6
Tier 1 Capital	19.3
Tier 2 Capital	2.4
Total Capital	21.6

Risk-Weighted Assets	169.4
Average Total Assets to calculate the Tier 1 Leverage Ratio	$	185.3


(Billions)	March 31, 2022		December 31, 2021
Customer deposits	$	90.9	$	84.4
Short-term borrowings	2.1		2.2
Long-term debt	38.3		38.7
Total customer deposits and debt	$	131.3	$	125.3


(Billions)	2022
American Express Company:
Fixed Rate Senior Notes (weighted-average coupon rate of 2.40%)	$	3.5
Floating Rate Senior Notes (compounded SOFR (a) plus weighted-average spread of 93 basis points)	0.5
American Express Credit Account Master Trust:
Fixed Rate Class A Certificates (weighted-average coupon of 2.21%)	1.3
Total	$	5.3


None


	Three Months Ended March 31,				Change 2022 vs. 2021
(Millions, except percentages)	2022		2021
Card Member rewards	$	3,111	$	2,243	$	868	39%
Business development	1,043		802		241		30
Card Member services	626		317		309		97
Marketing	1,224		964		260		27
Salaries and employee benefits	1,654		1,550		104		7
Other, net	1,398		870		528		61
Total expenses	$	9,056	$	6,746	$	2,310	34%


(Billions)	2022		2021
Total cash provided by (used in):
Operating activities	$	3.9	$	2.3
Investing activities	(2.8)		4.8
Financing activities	4.5		0.4
Effect of foreign currency exchange rates on cash and cash equivalents	—		(0.2)
Net increase in cash and cash equivalents	$	5.6	$	7.3


(Millions, except share data)	March 31, 2022		December 31, 2021
Assets
Cash and cash equivalents
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2022, $8; 2021, $11)	$	3,011	$	1,292
Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2022, $476; 2021, $463)	22,896		20,548
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2022, $1,745; 2021, $32)	1,771		188
Total cash and cash equivalents	27,678		22,028
Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2022, $5,640; 2021, $5,175), less reserves for credit losses: 2022, $76; 2021, $64	53,088		53,581
Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2022, $26,017; 2021, $26,587), less reserves for credit losses: 2022, $2,981; 2021, $3,305	85,851		85,257
Other loans, less reserves for credit losses: 2022, $48; 2021, $52	3,264		2,859
Investment securities	4,058		2,591
Premises and equipment, less accumulated depreciation and amortization: 2022, $8,907; 2021, $8,602	5,046		4,988
Other assets, less reserves for credit losses: 2022, $22; 2021, $25	16,877		17,244
Total assets	$	195,862	$	188,548
Liabilities and Shareholders’ Equity
Liabilities
Customer deposits	$	90,917	$	84,382
Accounts payable	11,196		10,574
Short-term borrowings	2,122		2,243
Long-term debt (includes debt issued by consolidated variable interest entities: 2022, $11,788; 2021, $13,803)	38,337		38,675
Other liabilities	30,907		30,497
Total liabilities	$	173,479	$	166,371
Contingencies (Note 7)
Shareholders’ Equity
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of March 31, 2022 and December 31, 2021	—		—
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 755 million shares as of March 31, 2022 and 761 million shares as of December 31, 2021	151		153
Additional paid-in capital	11,451		11,495
Retained earnings	13,754		13,474
Accumulated other comprehensive income (loss)	(2,973)		(2,945)




Total shareholders’ equity	22,383		22,177
Total liabilities and shareholders’ equity	$	195,862	$	188,548


Three Months Ended March 31 (Millions, except per share amounts)	2022		2021
Revenues
Non-interest revenues
Discount revenue	$	6,835	$	5,001
Net card fees	1,423		1,253
Service fees and other revenue	906		638
Processed revenue	372		342
Total non-interest revenues	9,536		7,234
Interest income
Interest on loans	2,473		2,144
Interest and dividends on investment securities	13		24
Deposits with banks and other	34		24
Total interest income	2,520		2,192
Interest expense
Deposits	122		134
Long-term debt and other	199		228
Total interest expense	321		362
Net interest income	2,199		1,830
Total revenues net of interest expense	11,735		9,064
Provisions for credit losses
Card Member receivables	80		(10)
Card Member loans	(111)		(573)
Other	(2)		(92)
Total provisions for credit losses	(33)		(675)
Total revenues net of interest expense after provisions for credit losses	11,768		9,739
Expenses
Card Member rewards	3,111		2,243
Business development	1,043		802
Card Member services	626		317
Marketing	1,224		964
Salaries and employee benefits	1,654		1,550
Other, net	1,398		870
Total expenses	9,056		6,746
Pretax income	2,712		2,993
Income tax provision	613		758
Net income	$	2,099	$	2,235
Earnings per Common Share (Note 14)(a)
Basic	$	2.73	$	2.74
Diluted	$	2.73	$	2.74
Average common shares outstanding for earnings per common share:
Basic	757		804
Diluted	758		805


	Three Months Ended March 31,
(Millions)	2022		2021
Net income	$	2,099	$	2,235
Other comprehensive income (loss):
Net unrealized debt securities (losses) gains, net of tax	(28)		(12)
Foreign currency translation adjustments, net of hedges and tax	(20)		(17)
Net unrealized pension and other postretirement benefits, net of tax	20		26
Other comprehensive income (loss)	(28)		(3)
Comprehensive income	$	2,071	$	2,232


Three Months Ended March 31 (Millions)	2022		2021
Cash Flows from Operating Activities
Net income	$	2,099	$	2,235
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for credit losses	(33)		(675)
Depreciation and amortization	398		422
Stock-based compensation	122		98
Deferred taxes	(69)		194
Other non-cash items (a)	(47)		(275)
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other assets	323		477
Accounts payable & other liabilities	1,087		(196)
Net cash provided by operating activities	3,880		2,280
Cash Flows from Investing Activities
Sale of investment securities	16		37
Maturities and redemptions of investment securities	767		553
Purchase of investments	(2,328)		(366)
Net (increase) decrease in Card Member loans and receivables, and other loans	(785)		4,869
Purchase of premises and equipment, net of sales: 2022, nil; 2021, $3	(447)		(319)


Net cash (used in) provided by investing activities	(2,777)		4,774
Cash Flows from Financing Activities
Net increase in customer deposits	6,541		2,327
Net decrease in short-term borrowings	(59)		(271)
Proceeds from long-term debt	6,231		—
Payments of long-term debt	(6,314)		(750)


Issuance of American Express common shares	49		31
Repurchase of American Express common shares and other	(1,570)		(513)
Dividends paid	(345)		(363)
Net cash provided by financing activities	4,533		461
Effect of foreign currency exchange rates on cash and cash equivalents	14		(200)
Net increase in cash and cash equivalents	5,650		7,315
Cash and cash equivalents at beginning of period	22,028		32,965
Cash and cash equivalents at end of period	$	27,678	$	40,280


Supplemental cash flow information
Cash and cash equivalents reconciliation	Mar-22		Dec-21		Mar-21		Dec-20
Cash and cash equivalents per Consolidated Balance Sheets	$	27,678	$	22,028	$	40,280	$	32,965
Restricted balances included in Cash and cash equivalents	2,207		525		527		606
Total Cash and cash equivalents, excluding restricted balances	$	25,471	$	21,503	$	39,753	$	32,359


Three months ended March 31, 2022 (Millions, except per share amounts)	Total		Preferred Shares		Common Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
Balances as of December 31, 2021	$	22,177	$	—	$	153	$	11,495	$	(2,945)	$	13,474

Net income	2,099		—		—		—		—		2,099
Other comprehensive loss	(28)		—		—		—		(28)		—
Repurchase of common shares	(1,483)		—		(2)		(126)		—		(1,355)
Other changes, primarily employee plans	26		—		—		82		—		(56)
Cash dividends declared preferred Series D, $8,875.00 per share	(14)		—		—		—		—		(14)
Cash dividends declared common, $0.52 per share	(394)		—		—		—		—		(394)
Balances as of March 31, 2022	$	22,383	$	—	$	151	$	11,451	$	(2,973)	$	13,754


Three months ended March 31, 2021 (Millions, except per share amounts)	Total		Preferred Shares		Common Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings
Balances as of December 31, 2020	$	22,984	$	—	$	161	$	11,881	$	(2,895)	$	13,837

Net income	2,235		—		—		—		—		2,235
Other comprehensive loss	(3)		—		—		—		(3)		—
Repurchase of common shares	(438)		—		(1)		(49)		—		(388)
Other changes, primarily employee plans	32		—		1		46		—		(15)
Cash dividends declared preferred Series B, $9,325.22 per share	(7)		—		—		—		—		(7)
Cash dividends declared preferred Series C, $8,753.75 per share	(7)		—		—		—		—		(7)

Cash dividends declared common, $0.43 per share	(347)		—		—		—		—		(347)
Balances as of March 31, 2021	$	24,449	$	—	$	161	$	11,878	$	(2,898)	$	15,308


2022 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	68,933	$	170	$	121	$	256	$	69,480
Global Commercial Services
Global Small Business Services	19,161		40		26		43		19,270
Global Corporate Payments (a)	(b)		(b)		(b)		—		82
Card Member Receivables:
Global Consumer Services Group	20,499		53		33		59		20,644
Global Commercial Services
Global Small Business Services	$	17,844	$	65	$	40	$	56	$	18,005
Global Corporate Payments (a)	(b)		(b)		(b)		$	50	$	14,515


2021 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	69,960	$	158	$	112	$	237	$	70,467
Global Commercial Services
Global Small Business Services	17,950		34		19		37		18,040
Global Corporate Payments (a)	(b)		(b)		(b)		—		55
Card Member Receivables:
Global Consumer Services Group	22,279		41		24		48		22,392
Global Commercial Services
Global Small Business Services	$	17,846	$	59	$	28	$	44	$	17,977
Global Corporate Payments (a)	(b)		(b)		(b)		$	42	$	13,276


	2022						2021
	Net Write-Off Rate						Net Write-Off Rate
	Principal Only(a)		Principal, Interest & Fees(a)		30+ Days Past Due as a % of Total		Principal Only(a)		Principal, Interest & Fees(a)		30+ Days Past Due as a % of Total
Card Member Loans:
Global Consumer Services Group	0.8	%	1.1	%	0.8	%	1.4	%	1.8	%	1.0	%
Global Small Business Services	0.6	%	0.7	%	0.6	%	1.0	%	1.2	%	0.6	%
Card Member Receivables:
Global Consumer Services Group	0.5	%	0.5	%	0.7	%	0.5	%	0.6	%	0.6	%
Global Small Business Services	0.7	%	0.8	%	0.9	%	0.5	%	0.5	%	0.6	%
Global Corporate Payments	(b)		0.2	%	(c)		(b)		0.4	%	(c)


	As of March 31, 2022
					Accounts Classified as a TDR (c)
2022 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group	$	170	$	84	$	644	$	1,015	$	1,913	$	315
Global Commercial Services	24		17		175		352		568		88
Card Member Receivables:
Global Consumer Services Group	—		—		144		144		288		8
Global Commercial Services	—		—		276		359		635		26
Other Loans (f)	1		1		48		1		51		—
Total	$	195	$	102	$	1,287	$	1,871	$	3,455	$	437


	As of December 31, 2021
					Accounts Classified as a TDR (c)
2021 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group	$	149	$	82	$	708	$	997	$	1,936	$	415
Global Commercial Services	19		14		176		332		541		132
Card Member Receivables:
Global Consumer Services Group	—		—		133		130		263		9
Global Commercial Services	—		—		248		303		551		39
Other Loans (f)	1		—		67		2		70		1
Total	$	169	$	96	$	1,332	$	1,764	$	3,361	$	596


	Three Months Ended March 31, 2022
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% points)	Average Payment Term Extensions (# of months)
Troubled Debt Restructurings:
Card Member Loans	27	$	177	14	(b)
Card Member Receivables	6	171		(c)	17
Other Loans (d)	1	1		2	15
Total	34	$	349


	Three Months Ended March 31, 2021
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% points)	Average Payment Term Extensions (# of months)
Troubled Debt Restructurings:
Card Member Loans	38	$	287	13	(b)
Card Member Receivables	7	117		(c)	18
Other Loans (d)	1	$	8	3	15
Total	46	$	412


	Three Months Ended March 31, 2022
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	4	$	29
Card Member Receivables	1	10
Other Loans (b)	—	—
Total	5	$	39


	U.S. Unemployment Rate	U.S. GDP Growth (Contraction) (a)
	March 31, 2022	December 31, 2021	March 31, 2022	December 31, 2021
First quarter of 2022	4%	4% - 7%	0.5%	6% - (4)%
Fourth quarter of 2022	3% - 7%	4% - 9%	4% - (2)%	2% - 1%
Fourth quarter of 2023	3% - 7%	3% - 7%	4% - 2%	4% - 3%
Fourth quarter of 2024	3% - 6%	4% -6%	4% - 2%	3%


	2022								2021
Description of Securities (Millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
State and municipal obligations	$	74	$	2	$	(4)	$	72	$	106	$	5	$	—	$	111
U.S. Government agency obligations	6		—		—		6		6		—		—		6
U.S. Government treasury obligations	3,240		7		(12)		3,235		1,680		25		(1)		1,704
Mortgage-backed securities (a)	15		1		—		16		17		1		—		18
Foreign government bonds and obligations	636		—		(1)		635		630		—		—		630
Other (b)	39		—		—		39		43		—		—		43
Equity securities (c)	61		1		(7)		55		66		17		(4)		79
Total	$	4,071	$	11	$	(24)	$	4,058	$	2,548	$	48	$	(5)	$	2,591


	2022				2021
	Less than 12 months					Less than 12 months
Description of Securities (Millions)	Estimated Fair Value		Gross Unrealized Losses				Estimated Fair Value		Gross Unrealized Losses
State and municipal obligations	$	44	$	(4)			$	—	$	—
U.S. Government treasury obligations	2,554		(12)				477		(1)
Foreign government bonds and obligations	440		(1)				—		—
Total	$	3,038	$	(17)			$	477	$	(1)


	Less than 12 months
Ratio of Fair Value to Amortized Cost (Dollars in millions)	Number of Securities	Estimated Fair Value		Gross Unrealized Losses
2022:
90–100%	44	$	3,032	$	(16)
Less than 90%	4	6		(1)
Total as of March 31, 2022	48	$	3,038	$	(17)
2021:
90–100%	5	$	477	$	(1)

Total as of December 31, 2021	5	$	477	$	(1)


(Millions)	2022		2023		2024		2025		2026		After 5 Years		Total
Certificates of deposit	$	2,804	$	794	$	991	$	500	$	20	$	138	5,247


	Other Assets Fair Value				Other Liabilities Fair Value
(Millions)	2022		2021		2022		2021
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)	$	34	$	204	$	55	$	—
Net investment hedges - Foreign exchange contracts	165		219		182		54
Total derivatives designated as hedging instruments	199		423		237		54
Derivatives not designated as hedging instruments:
Foreign exchange contracts	224		167		104		85
Total derivatives, gross	423		590		341		139
Derivative asset and derivative liability netting (b)	(173)		(93)		(173)		(93)
Cash collateral netting (c)	(12)		(204)		(30)		(4)
Total derivatives, net	$	238	$	293	$	138	$	42