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Component: (Network and Table)
Network
300120 - Disclosure - Income Taxes (Tables)
(http://americanexpresscreditcorp.com/role/DisclosureIncomeTaxesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000004969 (http://www.sec.gov/CIK)
Income Taxes (Tables) [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Income Taxes (Tables) [Abstract]
 
Components of income tax expense

The components of income tax expense (benefit) for the years ended December 31 included in Credco’s Consolidated Statements of Income were as follows:

(Millions)201620152014
Current income tax expense (benefit):
U.S. federal $(4)$15$(22)
U.S. state and local (6)(4)(23)
Non-U.S. 112022
Total current income tax expense (benefit)131(23)
Deferred income tax expense (benefit) :
U.S. federal 10(5)―
U.S. state and local1――
Non-U.S. 312(12)
Total deferred income tax expense (benefit) 147(12)
Total income tax expense (benefit)$15$38$(35)
  
Effective income tax rate

A reconciliation of the U.S. federal statutory rate of 35 percent to Credco’s actual income tax rate for the years ended December 31 was as follows:

201620152014
U.S. statutory federal income tax rate 35.0%35.0%35.0%
(Decrease) increase in taxes resulting from:
State and local income taxes, net of federal benefit(0.5)―(0.3)
Non-U.S. subsidiaries earnings(a)(25.1)(25.5)(38.4)
Tax Settlements(b)(1.4)(0.4)(4.4)
Other(c)(0.9)6.0(3.0)
Actual tax rate7.1%15.1%(11.1)%

  • Results for all years include recurring permanent tax benefits in relation to the level of pretax income. Expenses in the United States are attracting a 35 percent statutory benefit whereas foreign earnings are taxed at lower rates and are indefinitely reinvested. Credco’s effective tax rate reflects the favorable impact of the tax benefit related to its ongoing funding activities outside of the United States.
  • The tax rate reflects favorable resolution of certain prior years’ tax items.
  • Results for all years include the impact of prior year tax returns filed in the current year.
  
Components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table:

(Millions)20162015
Deferred tax assets:
Reserves not yet deducted for tax purposes $23$28
State income taxes 911
Other 12
Gross deferred tax assets 3341
Deferred tax liabilities:
Investment in foreign subsidiaries―1
Foreign exchange gain8―
Gross deferred tax liabilities 81
Net deferred tax assets$25$40
  
Changes in unrecognized tax benefits

The following table presents changes in unrecognized tax benefits:

(Millions)201620152014
Balance, January 1 $211$364$481
Increases:
Current year tax positions7922
Tax positions related to prior years 2411
Decreases:
Tax positions related to prior years (1)(152)(113)
Settlements with tax authorities(1)―(7)
Lapse of statute of limitations(4)(4)―
Balance, December 31 $308$211$364