Rendering
Component: (Network and Table) |
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Network | 030210 - Disclosure - Income Taxes (Tables) (http://americanexpress.com/role/IncomeTaxesTables) |
Table | (Implied) |
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis] | 0000004962 (http://www.sec.gov/CIK) |
Table Text Block [Abstract] | Period [Axis] |
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2016-01-01 - 2016-12-31 |
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Table Text Block [Abstract] | |
Components of income tax expense | The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) | | | 2016 | | | 2015 | | | 2014 | Current income tax expense: | | | | | | | | | | | U.S. federal | | $ | 2,179 | | $ | 2,107 | | $ | 2,136 | | U.S. state and local | | | 272 | | | 335 | | | 264 | | Non-U.S. | | | 342 | | | 416 | | | 412 | | | Total current income tax expense | | | 2,793 | | | 2,858 | | | 2,812 | Deferred income tax (benefit) expense: | | | | | | | | | | | U.S. federal | | | (45) | | | (23) | | | 352 | | U.S. state and local | | | (8) | | | (5) | | | 39 | | Non-U.S. | | | (52) | | | (55) | | | (97) | | | Total deferred income tax (benefit) expense | | | (105) | | | (83) | | | 294 | Total income tax expense | | $ | 2,688 | | $ | 2,775 | | $ | 3,106 |
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Effective income tax rate | A reconciliation of the U.S. federal statutory rate of 35 percent to the Company’s actual income tax rate for the years ended December 31 on continuing operations was as follows: | | | | 2016 | | 2015 | | 2014 | | U.S. statutory federal income tax rate | | 35.0 | % | 35.0 | % | 35.0 | % | (Decrease) increase in taxes resulting from: | | | | | | | | | Tax-exempt income | | (1.7) | | (1.7) | | (1.5) | | | State and local income taxes, net of federal benefit | | 2.7 | | 2.8 | | 2.7 | | | Non-U.S. subsidiaries earnings(a) | | (2.0) | | (1.8) | | (2.2) | | | Tax settlements(b) | | (0.6) | | (0.2) | | (0.5) | | | Non deductible expenses(c) | | ― | | 0.9 | | ― | | | Other | | (0.2) | | ― | | 1.0 | | | | Actual tax rates(a) | | 33.2 | % | 35.0 | % | 34.5 | % |
- Results for all years primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely.
- Relates to the resolution of tax matters in various jurisdictions.
- Relates to the nondeductible portion of the Prepaid Services goodwill impairment in 2015.
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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) | | | 2016 | | | 2015 | Deferred tax assets: | | | | | | | | Reserves not yet deducted for tax purposes | | $ | 3,889 | | $ | 3,771 | | Employee compensation and benefits | | | 595 | | | 648 | | Other | | | 592 | | | 520 | | | Gross deferred tax assets | | | 5,076 | | | 4,939 | | | Valuation allowance | | | (54) | | | (58) | | | Deferred tax assets after valuation allowance | | | 5,022 | | | 4,881 | Deferred tax liabilities: | | | | | | | | Intangibles and fixed assets | | | 1,691 | | | 1,547 | | Deferred revenue | | | 441 | | | 509 | | Deferred interest | | | 305 | | | 323 | | Investment in joint ventures | | | 209 | | | 231 | | Other | | | 121 | | | 120 | | | Gross deferred tax liabilities | | | 2,767 | | | 2,730 | Net deferred tax assets | | $ | 2,255 | | $ | 2,151 |
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Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits: (Millions) | | | 2016 | | | 2015 | | | 2014 | Balance, January 1 | | $ | 870 | | $ | 909 | | $ | 1,044 | Increases: | | | | | | | | | | | Current year tax positions | | | 167 | | | 81 | | | 4 | | Tax positions related to prior years | | | 117 | | | 177 | | | 111 | Decreases: | | | | | | | | | | | Tax positions related to prior years | | | (81) | | | (256) | | | (181) | | Settlements with tax authorities | | | (76) | | | (15) | | | (67) | | Lapse of statute of limitations | | | (22) | | | (26) | | | (1) | | Effects of foreign currency translations | | | (1) | | | ― | | | (1) | Balance, December 31 | | $ | 974 | | $ | 870 | | $ | 909 |
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