AMERICAN EXPRESS CO
For the period ended Dec 31, 2025. Filed Feb 6, 2026.
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FY2025 · Filed Feb 6, 2026
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– Other Liabilities
NOTE 9
OTHER LIABILITIES
The following is a summary of Other liabilities as of December 31, 2025 and 2024:
TABLE 9.1: OTHER LIABILITIES
| (Millions) | 2025 | 2024 |
|---|---|---|
| Membership Rewards liability | $16,520 | $14,752 |
| Deferred card and other fees, net | 4,655 | 4,042 |
| Book overdraft balances (a) | 4,054 | 3,461 |
| Employee-related liabilities (b) | 3,091 | 2,676 |
| Card Member rebate and reward accruals (c) | 2,247 | 2,121 |
| Income tax liability | 1,401 | 1,386 |
| Other (d) | 9,664 | 8,373 |
| Total | $41,632 | $36,811 |
(a)Includes negative cash balances for accounts without an associated overdraft facility, due to timing differences arising in the ordinary course of business.
(b)Includes employee benefit plan obligations and incentive compensation.
(c)Includes liabilities related to rewards earned on cobrand and cash back card products.
(d)Primarily includes prepaid products and Travelers Cheques, lease liabilities, accruals for general operating expenses, derivative liabilities, unfunded commitments for tax credit investments, dividends payable, payments to cobrand partners and client incentives.
MEMBERSHIP REWARDS
The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad variety of rewards including, but not limited to, travel, shopping, gift cards and statement credits. We record a Membership Rewards liability that represents our best estimate of the cost of points earned that are expected to be redeemed by Card Members in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are the key assumptions used to estimate the liability. We use statistical and actuarial models to estimate the URR based on redemption trends, card product type, enrollment tenure, card spend levels and credit attributes. The WAC per point assumption is derived from 12 months of redemptions and is adjusted as appropriate for certain changes in redemption costs that are not representative of future cost expectations and expected developments in redemption patterns.
The expense for Membership Rewards points is included in Card Member rewards expense. We periodically evaluate our liability estimation process and assumptions based on changes in cost per point redeemed, partner contract changes and developments in redemption patterns, which may be impacted by product refreshes, changes in redemption options and mix of proprietary cards-in-force.
DEFERRED CARD AND OTHER FEES, NET
The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31, 2025 and 2024 was as follows:
TABLE 9.2: DEFERRED CARD AND OTHER FEES, NET
| (Millions) | 2025 | 2024 |
|---|---|---|
| Deferred card and other fees (a) | $5,099 | $4,475 |
| Deferred direct acquisition costs | (170) | (180) |
| Reserves for membership cancellations | (274) | (253) |
| Deferred card and other fees, net | $4,655 | $4,042 |
(a)Includes deferred fees for Membership Rewards program participants.
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