You previously completed an assignment for me and forgot to answer the question below.

2. REVIEW THE CHAIRMAN?S LETTER TO THE SHAREHOLDERS.

Summarize the major points made in the letter. Use complete sentences and well-organized paragraphs, your summary should be no less than 100 words in length.

2015 AMERICAN EXPRESS COMPANY ANNUAL REPORT TO OUR SHAREHOLDERS Our company has a long track record of success. That's not to say the path has always been easy. We've often faced challenges, yet each time we've adapted and emerged stronger. Today, as our industry undergoes fundamental change, we're taking steps to accelerate revenue growth and adjust our cost structure. We're doing so with both a realistic view of our challenges and confidence in our many strengths. I think we have a strong foundation and abundant opportunities to create a very successful future. However, I'd also be among the first to tell you that we need to raise our performance coming out of 2015. All in all, it was a tough year. Our earnings were not what we, or you, are used to seeing from American Express. Our stock trailed the broader market. And, on a personal note, we suffered the tragic loss of our dear friend and president, Ed Gilligan, who passed away in May. We made progress on many fronts in 2015, including strong loan growth, industryleading credit quality, higher transaction volumes, and encouraging results from investments to expand our Card Member and merchant bases. However, we also had several factors working against us, such as worsening cobrand economics and the stronger U.S. dollar, which suppressed earnings and revenue. For the year, we earned $5.2 billion in net income, down 12 percent from 2014. Revenues decreased by 4 percent to $32.8 billion. Expenses were down 1 percent overall as a result of strong operating expense controls. At the same time, we continued to invest heavily in initiatives designed to fuel our future growth. A number of factors made year-over-year comparisons somewhat complex. But a look at our underlying business shows continued growth. Adjusted revenues rose 4 percent, excluding foreign exchange, a 2014 gain on the sale of our investment in Concur Technologies and revenues from business travel, which now operates as a joint venture.1 Spending on American Express cards rose 6 percent, adjusted for foreign exchange translations.2 This came despite lower volumes in Canada, where our relationship with Costco ended, as well as a slowdown in Costco volumes in the U.S. in anticipation of the end of our contract in mid-2016. 1 AMERICAN EXPRESS COMPANY|ANNUAL REPORT 2015 Ultimately, though, revenues did not pick up as we had expected during 2015. Our changing view of both the environment and our own performance caused us to issue a more cautious outlook for 2016 and 2017. As I did in my recent conversation with investors during our fourth-quarter earnings conference call, I'd like to spend the bulk of this letter addressing three key questions: \tWhy has our view of 2016 and 2017 evolved? \tWhat are we doing about it? \tWhy are we confident in our ability to grow over the moderate to long term? The Operating Environment To answer the first question, we need to look at the operating environment. While the macroeconomic headwinds that we've been discussing for some time now are not new trends, they've lasted longer than we previously expected. The stronger U.S. dollar has had a large impact on our business, reducing earnings per share by about 3 to 4 percentage points in 2015. The price of oil, and its downstream impact on airfares and gasoline prices, created a drag on charge volume. And the slow-growing U.S. economy has made businesses of all sizes more cautious in their spending. These are cyclical challenges that will eventually turn. We also face longer-term changes that are reshaping the payments industry. They include: \tA reset in cobrand economicsOver time, these relationships have become more expensive as contracts have come up for renewal and competition for them has increased. \tPressure on merchant feesThis is coming from several fronts: regulation in key international markets, intensifying competition, and a lowering of our average discount rate as we expand card acceptance among smaller merchants. Heightened competition for customersAs banks have been shifting investments to their card businesses, competition for our customers has increased in every segment: consumer, small business, middle market and large corporations. AMERICAN EXPRESS COMPANY|ANNUAL REPORT 2015 2 Beyond these factors, we also continue to await the outcome of our appeal in the Department of Justice lawsuit. The DOJ wants to ban provisions in our merchant contracts that protect American Express from discrimination against our card products. There was an encouraging development in December when an appeals court ordered a temporary stay of an earlier lower court judgment against American Express. We continue to believe that the lower court's ruling would provide no benefit to consumers and, instead, would harm competition. Our Response This is a long list of challenges, longer than we've seen in many years. We recognize them. We've been addressing them with a strong sense of urgency. And we're making progress on many fronts. Over the past 12 to 18 months: \tWe took decisive action in the cobrand space, accelerating contract talks with partners. We focused on those relationships where we can earn attractive returns and provide strong customer value, which led us to deals with Delta, Starwood, Cathay Pacific, British Air and Charles Schwab. We did not, however, renew our agreement with Costco because we were unable to reach terms that would have made economic sense for our company and our shareholders. This certainly has a significant short-term impact, but we continue to believe it was in our best longterm interests. \tWe contained operating expenses and reorganized many areas of our business. Now we're set to take cost reduction to the next level through the billion-dollar improvement program we announced in January 2016. \tWe ramped up spending on Card Member acquisition and brought in 7.7 million new cards in the U.S. last year. Our investments here are paying off, and we're now working to turn those new accounts into additional volumes. \tWe stepped up investments in our international business with strong results. Adjusted billed business rose by 12 percent last year.2 \tWe expanded our merchant network, adding more than 1.2 million new merchants globally in 2015. With our OptBlue program, we're continuing our efforts to move toward parity coverage with the other card networks in the U.S. 3 AMERICAN EXPRESS COMPANY|ANNUAL REPORT 2015 \tWe grew our lending business faster than the market, while maintaining our industry-best credit performance. Adjusted loans rose by 7 percent worldwide and 10 percent in the U.S. in 2015.3 We'll continue to target new lending prospects and deepen relationships with current customers. \tWe expanded our digital capabilities and partnerships to better serve our customers. Actions here included the launch of Amex Express Checkout and integrations with Airbnb, Android Pay, ApplePay, Samsung Pay and Uber. \tWe streamlined our management structure, creating integrated consumer, commercial and merchant teams to help accelerate our growth. \tAnd, taking advantage of our financial strength, we returned more than $5 billion to our shareholders last year through dividends and share repurchases. We accomplished a great deal, but, as I said earlier, we have more work to do. We're heightening our efforts with a focus on three priorities: \tReduce our expense base and optimize our investments; \tAccelerate revenue growth; and \tContinue to use our capital strength to create value for shareholders. Reduce Costs Let me start with expenses and give you a little more context. In 2013, we set a goal to limit opex growth to 3 percent or less. We have beaten that goal every year since then. To accomplish this, we took a number of restructuring actions that provided benefits in 2015 and will continue to aid us in 2016. The plan we announced in January is a major step up from there. We aim to reduce our overall cost base, which includes total operating expenses plus marketing and promotion costs, by $1 billion by the end of 2017. This will involve structural changes to streamline the organization and reengineer key processes that now exist in multiple parts of the company to increase efficiency. I've assigned our Vice Chairman Steve Squeri to lead the effort. He'll work with me and other senior leaders in every area of our business to ensure we move quickly and meet our goals. AMERICAN EXPRESS COMPANY|ANNUAL REPORT 2015 4 Steve is one of our most accomplished leaders. He's been at the forefront of containing our operating expenses over the past several years and has an outstanding track record of making the organizations he's led more efficient and more effective. As this new effort advances, we'll act to reduce costs in a thoughtful waywithout compromising our ability to serve our customers, meet our compliance obligations and grow the business. Optimize Investments Our focus on costs also involves spending our investment dollars more efficiently. We'll continue to use big data analytics to improve the way we evaluate, prioritize and execute our investment opportunities. We'll pursue growth opportunities in a more coordinated way through the new management structure we put in place last October. And we'll stop certain initiatives where we're not seeing resultsor a clear path to resultsjust as we did by refocusing Enterprise Growth late last year. Some of the alternative products and platforms that Enterprise Growth developed in recent years showed promise while, frankly, others didn't. As a result, we decided to focus more narrowly on our strongest prepaid products, Serve and Bluebird, and we recorded a charge in the fourth quarter. Taking this step will enable us to redirect investments to other parts of our business that can generate better returns more quickly. Grow Revenues While managing costs is important, revenue growth is key to our long-term success. I'm confident we can improve upon our recent performance. Here are some of the reasons why: a wide range of attractive opportunities across our diverse customer base; the progress we've made in attracting new Card Members and merchants; our ability to broaden relationships with existing customers; the leverage we can gain from operating and investing more efficiently; and the power and potential of our closed-loop model to create additional value for customers and partners. 5 AMERICAN EXPRESS COMPANY|ANNUAL REPORT 2015 Going forward, we'll direct our investments toward efforts that can help us build revenues and earnings over the moderate to long term, including: \tExpanding our card member base with a focus on differentiated products and premium services; \tGrowing our merchant network through OptBlue and other programs; Deepening customer relationships through lending and rewards; \tContinuing to increase our international presence; \tExpanding our offerings in merchant financing, working capital and FX international payments; and \tDeveloping newer opportunities related to our loyalty coalition business as well as our closed-loop data analytics. In addition to organic growth, we'll continue to explore acquisitions that can help enhance the value we provide to our customers. Taking a broader view, we see a compelling range of growth opportunities as consumers continue to move away from cash and checks, as online and mobile opportunities expand, and as commerce and payments continue to converge. While we certainly face greater competition from both traditional rivals and newer entrants looking to disrupt the industry, we believe that macro trends in payments and technology can play to our strengths in the years ahead. We have a tremendous set of assets to draw uponour trusted brand, financial strength, the advantages of our closed loop and the data it provides, world-class customer service, and our proven ability to innovate in digital commerce. Our integrated payments model runs about $1 trillion in spending through our closed loop each year. That rich data enables us to create value for Card Members and build business for our merchant partners. This is a major advantage, and it's one reason why other card issuers are trying to cobble together a closed loop of their own, despite having only a portion of the essential data. We're not simply looking to do a better job of processing payments. We're focused on using our relationships, technology and data to better serve our customers and open up commerce opportunities for our partners. As the boundaries between online and offline blur, I believe our business model puts us in a great position to benefit from the convergence of commerce and payments. AMERICAN EXPRESS COMPANY|ANNUAL REPORT 2015 6 We recognize that we're operating in a new reality. That's why we're focused on the plan I outlined to increase revenues, reduce costs and optimize our investments. As always, we worked closely with the Board of Directors as they reviewed our plans and progress. Our Board is an outstanding group of business leaders whose insights, guidance and support play a critical role in our efforts to build shareholder value. While we're intensely focused on raising the company's performance in the short-term, we are managing American Express with a long-term view as we adapt and invest for the future. As I said at the start of this letter, we face difficult challenges, but we've faced tough challenges before. Each time this company has been tested, we've become stronger. We're confident that we can deal with our challenges, return to sustainable growth and position the company for long-term success. Thank you. Sincerely, Kenneth I. Chenault Chairman & CEO American Express Company February 29, 2016 Footnotes: 1 T \u0007 otal revenues net of interest expense, adjusted for FX and excluding Business Travel revenues from the first half of 2014 and the gain on the sale of our investment in Concur Technologies in the fourth quarter 2014, and related growth rate are non-GAAP measures. See footnote 2 for an explanation of FX-adjusted information and Appendix I for a reconciliation to total revenues net of interest expense on a GAAP basis. 2 F \u0007 X-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (e.g., assumes the foreign exchange rates used to determine results for 2015 apply to the period(s) against which such results are being compared). Certain amounts included in the calculations of FX-adjusted revenues are subject to management allocations. 3 A \u0007 djusted worldwide loan growth is a non-GAAP measure and excludes from 2014 the Q4'14 Card Member loan balances related to cobrand partnerships with Costco in the U.S. and JetBlue, now classified as held for sale. See Appendix II for a reconciliation to Card Member loans held for investment, on a GAAP basis. 7 AMERICAN EXPRESS COMPANY|ANNUAL REPORT 2015 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2015 OR ' TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-7657 American Express Company (Exact name of registrant as specified in its charter) New York 13-4922250 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 200 Vesey Street New York, New York 10285 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 640-2000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Shares (par value $0.20 per Share) New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No ' Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ' No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes No ' Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ( 232.405 of this chapter) during the preceding 12 months (or for a shorter period that the registrant was required to submit and post such files). Yes No ' Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of \"large accelerated filer,\" \"accelerated filer\" and \"smaller reporting company\" in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer ' Non-accelerated filer ' Smaller reporting company ' (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ' No As of June 30, 2015, the aggregate market value of the registrant's voting shares held by non-affiliates of the registrant was approximately $77.7 billion based on the closing sale price as reported on the New York Stock Exchange. As of February 10, 2016, there were 964,045,452 common shares of the registrant outstanding. DOCUMENTS INCORPORATED BY REFERENCE Part III: Portions of Registrant's Proxy Statement to be filed with the Securities and Exchange Commission in connection with the Annual Meeting of Shareholders to be held on May 2, 2016. TABLE OF CONTENTS Form 10-K Item Number Page PART I 1. 1A. 1B. 2. 3. 4. 5. 6. 7. 7A. 8. 9. 9A. 9B. Business Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S. Card Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . International Card Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Global Commercial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Global Network & Merchant Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporate & Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supervision and Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Segment Information and Classes of Similar Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Executive Officers of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Guide 3 Statistical Disclosure by Bank Holding Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mine Safety Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART II Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Management's Discussion and Analysis of Financial Condition and Results of Operations (\"MD&A\") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Executive Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consolidated Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business Segment Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consolidated Capital Resources and Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Off-Balance Sheet Arrangements and Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Critical Accounting Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Quantitative and Qualitative Disclosures about Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Management's Report on Internal Control Over Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Index to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i 1 3 10 11 12 20 21 31 31 31 32 33 33 46 46 46 48 48 50 51 51 54 62 73 83 84 90 93 98 98 98 99 100 101 106 160 160 160 Form 10-K Item Number Page PART III 10. 11. 12. 13. 14. 15. Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Certain Relationships and Related Transactions, and Director Independence . . . . . . . . . . . . . . Principal Accounting Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART IV 160 160 Exhibits, Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Guide 3 Statistical Disclosure by Bank Holding Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 162 A-1 E-1 160 160 161 This Annual Report on Form 10-K, including the \"Management's Discussion and Analysis of Financial Condition and Results of Operations,\" contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. You can identify forward-looking statements by words such as \"believe,\" \"expect,\" \"anticipate,\" \"intend,\" \"plan,\" \"aim,\" \"will,\" \"may,\" \"should,\" \"could,\" \"would,\" \"likely,\" \"estimate,\" \"predict,\" \"potential,\" \"continue\" or other similar expressions. We discuss certain factors that affect our business and operations and that may cause our actual results to differ materially from these forwardlooking statements under \"Risk Factors\" and \"Cautionary Note Regarding Forward-Looking Statements.\" You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements. ii PART I ITEM 1. BUSINESS INTRODUCTION Overview American Express Company, together with its consolidated subsidiaries (\"American Express,\" the \"Company,\" \"we,\" \"us\" or \"our\"), is a global services company that provides customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. We were founded in 1850 as a joint stock association. We were incorporated in 1965 as a New York corporation. American Express Company and its principal operating subsidiary, American Express Travel Related Services Company, Inc. (\"TRS\"), are bank holding companies under the Bank Holding Company Act of 1956, as amended (the \"BHC Act\"), subject to supervision and examination by the Board of Governors of the Federal Reserve System (the \"Federal Reserve\"). Our headquarters are located in New York, New York in lower Manhattan. We also have offices in other locations throughout the world. During 2015, we principally engaged in businesses comprising four reportable operating segments, with corporate functions and certain other businesses in Corporate & Other: U.S. Card Services (\"USCS\") International Card Services (\"ICS\") Global Commercial Services (\"GCS\") Global Network & Merchant Services (\"GNMS\") Corporate & Other During the fourth quarter of 2015, we announced organizational changes that combined our corporate and small business organizations into a business-to-business focused group and combined our merchant-related businesses, among other changes. Our financial disclosures will reflect these organizational changes starting in the first quarter of 2016, which is consistent with when our executives will begin to review financial information aligned to the new segments. Our reportable operating segments will be as follows: U.S. Consumer Services, including our U.S. Consumer Card Services business and American Express Travel & Lifestyle Services in the United States International Consumer and Network Services, including our International Consumer Card Services business, American Express Travel & Lifestyle Services outside the United States and our Global Network Services (\"GNS\") business (from GNMS) Global Commercial Services, including our Global Corporate Payments business, American Express OPEN and small business services businesses in the United States and internationally (from USCS and ICS, respectively), merchant financing products (from GNMS) and foreign exchange services operations (from Corporate & Other) Global Merchant Services, including our Global Merchant Services business and our Plenti and Loyalty Partner businesses (from USCS and ICS, respectively) 1 This report discusses the reportable operating segments consistent with financial information as presented in the Consolidated Financial Statements. Securities Exchange Act Reports and Additional Information We maintain an Investor Relations website on the internet at http://ir.americanexpress.com. We make available free of charge, on or through this website, our annual, quarterly and current reports and any amendments to those reports as soon as reasonably practicable following the time they are electronically filed with or furnished to the Securities and Exchange Commission (\"SEC\"). To access these materials, click on the \"SEC Filings\" link under the caption \"Financial Information\" on our Investor Relations homepage. You can also access our Investor Relations website through our main website at www.americanexpress.com by clicking on the \"Investor Relations\" link, which is located at the bottom of our homepage. Information contained on our Investor Relations website, our main website and other websites referred to in this report is not incorporated by reference into this report or any other report filed with or furnished to the SEC. We have included such website addresses only as inactive textual references and do not intend them to be active links. This report includes trademarks, such as American Express, which are protected under applicable intellectual property laws and are the property of American Express Company or its subsidiaries. This report also contains trademarks, service marks, copyrights and trade names of other companies, which are the property of their respective owners. Solely for convenience, our trademarks and trade names referred to in this report may appear without the or TM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks and trade names. Products and Services Our range of products and services includes: Charge and credit card products Network services Merchant acquisition and processing, servicing and settlement, merchant financing, and point-of-sale, marketing and information products and services for merchants Fee services, including fraud prevention services and the design and operation of customer loyalty and rewards programs Expense management products and services Travel-related services Stored value/prepaid products Our various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold through various channels, including direct mail, online applications, in-house and third-party sales forces and direct response advertising. Business travel-related services are offered through our non-consolidated joint venture, American Express Global Business Travel (the \"GBT JV\"). Our general-purpose card network, card-issuing and merchant-acquiring and processing businesses are global in scope. We are a world leader in providing charge and credit cards to consumers, small businesses and corporations. These cards include cards issued by American Express as well as cards issued by third-party banks and other institutions that are accepted by merchants on the American Express network. American Express cards permit Card Members to charge purchases of goods and services in most countries around the world at the millions of merchants that accept cards bearing our logo. At December 31, 2015, we had total worldwide cards-in-force of 117.8 million (including cards issued by third parties). In 2015, our worldwide billed business (spending on American Express cards, including cards issued by third parties) was $1.04 trillion. Our business as a whole has not experienced significant seasonal fluctuations, although card billed business tends to be moderately higher in the fourth quarter than in other quarters. As a result, the amount of Card Member loans and receivables outstanding tend to be moderately higher during that quarter. The average discount rate also tends to be slightly lower during the fourth quarter due to a higher level of retail-related billed business volumes. 2 Competitive Advantages of Our Closed-Loop Network and Spend-Centric Model We believe our \"closed-loop\" network and \"spend-centric\" business model continue to be competitive advantages by giving us the ability to provide differentiated value to Card Members, merchants and our card-issuing partners.* Wherever we manage both the acquiring relationship with merchants and the card-issuing side of the business, there is a \"closed loop,\" which distinguishes our network from the bankcard networks, in that we have access to information at both ends of the card transaction. We maintain direct relationships with both our Card Members (as a card issuer) and merchants (as an acquirer), and we handle all key aspects of those relationships. Through contractual relationships, we also obtain data from third-party card issuers, merchant acquirers and processors with whom we do business. This \"closed loop\" allows us to analyze information on Card Member spending and build algorithms and other analytical tools that we use to underwrite risk, reduce fraud and provide targeted marketing and other information services for merchants and special offers and services to Card Members through a variety of channels, while at the same time respecting Card Member preferences and protecting Card Member and merchant data in compliance with applicable policies and legal requirements. Our \"spend-centric\" business model focuses on generating revenues primarily by driving spending on our cards and secondarily by finance charges and fees. Spending on our cards, which is higher on average on a per-card basis versus our competitors, offers greater value to merchants in the form of loyal customers and higher sales. This enables us to earn discount revenue that allows us to invest in value-added services for merchants and Card Members. Because of the revenues generated from having higher-spending Card Members, we have the flexibility to invest in attractive rewards and other benefits to Card Members, as well as targeted marketing and other programs and investments for merchants, all of which create incentives for Card Members to spend more on their cards and positively differentiate American Express cards. The significant investments we make in rewards and other compelling value propositions for Card Members incent card usage at merchants and Card Member loyalty. The American Express Brand Our brand and its attributes trust, security and service are key assets of the Company. We continue to focus on our brand, and our products and services are evidence of our commitment to its attributes. Our brand has consistently been rated one of the most valuable brands in the world in published studies, and we believe it provides us with a significant competitive advantage. We believe our brand and its attributes are critical to our success, and we invest heavily in managing, marketing, promoting and protecting it. We place significant importance on trademarks, service marks and patents, and seek to secure our intellectual property rights around the world. U.S. CARD SERVICES We offer a wide range of card products and services to consumers and small businesses in the United States. Our consumer travel business, which provides travel services to Card Members and other consumers, complements our core card business. We also operate a coalition loyalty business in the U.S. called Plenti and offer deposit products directly to consumers through American Express Personal Savings. The proprietary card business offers a broad set of card products, rewards and services to acquire and retain high-spending, creditworthy Card Members. Core elements of our strategy are: Designing card products with features that appeal to our target customer base in traditional and newer customer segments Using incentives to drive spending on our various card products and generate loyal customers, including our Membership Rewards program, cash-back reward features and participation in loyalty programs sponsored by our cobrand and other partners, such as Delta SkyMiles Providing an array of other benefits and services across card products to address travel and other needs Driving spending in online and offline channels and accommodating spending wherever and however Card Members desire Developing and nurturing wide-ranging relationships with cobrand and other partners * The use of the term \"partner\" or \"partnering\" does not mean or imply a formal legal partnership, and is not meant in any way to alter the terms of American Express' relationship with third-party issuers and merchant acquirers. 3 Promoting and using incentives for Card Members to use their cards in new and expanded merchant categories, including everyday spend and traditional cash and check categories Providing solutions to support the everyday business operations of our small business customers Providing exceptional customer service Consumer and Small Business Services We offer individual consumer charge cards such as the American Express Green Card, the American Express Gold Card, the Platinum Card and the Centurion Card, as well as small business charge cards, including the Plum Card. We also offer revolving credit cards such as the Amex EveryDay Credit Card, Blue Cash Everyday Card from American Express, Blue Sky from American Express and, for small businesses, Blue for Business Credit Card and SimplyCash Business Card. In addition, we offer a variety of cards sponsored by and cobranded with other corporations and institutions for consumers and small businesses, such as the Delta SkyMiles Credit Card from American Express, Starwood Preferred Guest Credit Card from American Express, Hilton HHonorsTM Card from American Express and Lowe's Business Rewards Card. For the year ended December 31, 2015, billed business from charge cards comprised 56 percent of total U.S. Card Services billed business. Centurion Bank and American Express Bank as Issuers of Certain Cards and Deposit Products We have two U.S. bank subsidiaries, American Express Centurion Bank (\"Centurion Bank\") and American Express Bank, FSB (\"American Express Bank\"), which are both FDIC-insured depository institutions. Certain information regarding each bank is set forth in the table below: Centurion Bank * American Express Bank Type of Bank Utah-chartered industrial bank Federal savings bank Regulatory Supervision Regulated, supervised and regularly examined by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (\"FDIC\") Regulated, supervised and regularly examined by the Office of the Comptroller of the Currency (\"OCC\"), an independent bureau of the U.S. Department of the Treasury Subject to supervision, examination and enforcement by the Consumer Financial Protection Bureau (\"CFPB\") with respect to marketing and sale of consumer financial products and compliance with federal consumer financial laws Subject to supervision, examination and enforcement by the CFPB with respect to marketing and sale of consumer financial products and compliance with federal consumer financial laws Types of Cards Issued Consumer charge and credit cards Consumer charge and credit cards All OPEN small business credit and charge cards Card Marketing Methods Primarily direct mail, online and other remote marketing channels Direct mail, online and other remote marketing channels In-person marketing, including by third-party cobrand partners Deposit Programs Deposits obtained only through third-party brokerage channels Deposits obtained through thirdparty brokerage channels and accepted directly from consumers Capital Adequacy Requirements at December 31, 2015* Well capitalized Well capitalized As of December 31, 2015, a bank generally was deemed to be well capitalized if it maintained a common equity Tier 1 capital ratio of at least 6.5 percent, a Tier 1 capital ratio of at least 8 percent, a total capital ratio of at least 10 percent and a Tier 1 leverage ratio of at least 5 percent. For further discussion regarding capital adequacy, see \"Capital Adequacy\" under \"Supervision and Regulation.\" Charge Cards Our charge cards, which generally carry no preset spending limits, are designed as a method of payment. Charges are approved based on a variety of factors including a Card Member's current spending patterns, payment history, credit record and financial resources. Card Members generally must pay the full amount billed each month. Charge 4 cards do offer several ways for eligible Card Members to pay off purchases over time. For example, Select & Pay Later allows enrolled Card Members to select individual charges to pay over time and the Extended Payment Option provides eligible Card Members with the ability to extend payment for eligible charges above a certain dollar amount. Charge card accounts that are past due are subject, in most cases, to a delinquency assessment and, if not brought to current status, may be suspended or cancelled. The no-preset spending limit and pay-in-full nature of these products attract high-spending Card Members, while allowing us to manage risk accordingly. Revolving Credit Cards We offer a variety of revolving credit cards that have a range of different payment terms, interest rate and fee structures. Revolving credit card products provide Card Members with the flexibility to pay their bill in full each month or carry a monthly balance on their cards to finance the purchase of goods or services. Along with charge cards and cobrand cards, these revolving credit cards promote increased relevance for our expanding merchant network. Cobrand Cards We issue cards under cobrand agreements with selected commercial firms in the United States. Attaining attractive cobrand card partnerships is intensely competitive among card issuers and networks as these partnerships can generate high-spending loyal customers. Cobrand arrangements are entered into for a fixed period, generally ranging from five to eight years, and will terminate in accordance with their terms, including at the end of the fixed period unless extended or renewed at the option of the parties, or upon early termination as a result of an event of default or otherwise. Card Members typically earn rewards provided by the partners' respective loyalty programs based upon their spending on the cobrand cards, such as frequent flyer miles, hotel loyalty points and cash back. We make payments to our cobrand partners, which can be significant, based primarily on the amount of Card Member spending and corresponding rewards earned on such spending and, under certain arrangements, on the number of accounts acquired and retained. The amount we pay to our cobrand partners has increased and will continue to increase as arrangements are renegotiated due to increasingly intense competition for cobrand partners among card issuers and networks. In some cases, the partner is solely liable for providing rewards to the Card Member under the cobrand partner's own loyalty program. As the issuer of the cobrand card, we retain all the credit risk with the Card Member and bear the receivables funding and operating expenses for such cards. The cobrand partner retains the risk associated with the miles, points or other currency earned by the Card Member under the partner's loyalty program. For further discussion of the competition for cobrand partners, see \"Card-Issuing Business Competition\" and \"We face substantial and increasingly intense competition for partner relationships, which could result in a loss or renegotiation of these arrangements that could have a material adverse impact on our business and results of operations\" in \"Risk Factors.\" Card Pricing and Account Management On certain cards we charge an annual fee that varies based on the type of card and the number of cards for each account. We also offer many revolving credit cards on which we assess finance charges for revolving balances. Depending on the product, we may also charge Card Members an annual program fee to participate in the Membership Rewards programs and fees for account performance (e.g., late fees) or for certain optional services. We apply standards and criteria for creditworthiness to each Card Member through a variety of means both at the time of initial solicitation or application and on an ongoing basis during the card relationship. We use sophisticated credit models and techniques in our risk management operations. For a further description of our risk management policies, see \"Risk Management\" under \"MD&A.\" Membership Rewards Program Our Membership Rewards program allows Card Members to earn one point for virtually every dollar charged on eligible, enrolled American Express cards, and then use points for a wide array of rewards, including travel, retail merchandise, dining and entertainment, financial services and donations to benefit charities. Memberships Rewards is our largest card-based rewards program and a significant portion of our cards by their terms allow Card Members to earn bonus points for purchases at merchants in particular industry categories. Points generally have no expiration date and there is no limit on the number of points one can earn. Membership Rewards program tiers are aligned with specific card products to better meet Card Member lifestyle and rewards program usage needs. American Express Card Members participate in various Membership Rewards program tiers based on their credit or charge card. We believe our Membership Rewards \"point bank\" is a substantial asset and a competitive advantage. We continue to evolve Membership Rewards to provide innovative ways to use points. For example, in 2015 we announced a partnership with Airbnb to allow eligible U.S. Card Members to use points to book accommodations directly on the Airbnb website. We also partnered with Best Buy to allow eligible U.S. Card Members to use their points for online purchases on BestBuy.com. 5 program Hotline Membership When a Card Rewards Member enrolledEmergency in the Membership Card Replacement Rewards program Global Assist uses their card, Online we establish Account reserves Management to Car Rental cover the cost Loss ofand estimated Damage future Insurance reward Online redemptions Year-End for Summary points earned Extended to date. WarrantyAdvance When a Membership TicketRewards Sales Purchase Protection program enrollee Exclusive redeems Accessa to reward Card using Member Membership Events Return Rewards Protection points, we make a payment to the Membership Rewards program partner providing the reward pursuant to contractual arrangements. Membership Rewards expense is driven by Card Member charge volume, customer participation in the program and contractual arrangements with redemption partners. For more information on our Membership Rewards program, see \"Critical Accounting Estimates Liability for Membership Rewards Expense\" under \"MD&A.\" Membership Rewards continues to be an important competitive differentiator and driver of Card Member spending and loyalty. We believe, based on historical experience, Card Members enrolled in rewards programs yield higher spend, stronger credit performance and greater profit for us. By offering a broader range of redemption choices, we have given our Card Members more flexibility in the use of their rewards points on a cost-effective basis. Our program is also valuable to merchants that become redemption partners as we bring them high-spending Card Members and new marketing channels to reach these Card Members. Card Member Benefits and Services Our Card Members have access to a variety of special benefits and services, some of which are fee-based, depending on the type of cards they have. Examples of these special benefits and services include: Membership Rewards program Emergency Card Replacement Global Assist Hotline Online Account Management Car Rental Loss and Damage Insurance Online Year-End Summary Extended Warranty Advance Ticket Sales Purchase Protection Exclusive Access to Card Member Events Return Protection OPEN In addition to our U.S. consumer card business, through American Express Bank we are also a leading payment card issuer for small businesses (generally, firms with fewer than 100 employees and/or annual sales up to $10 million). American Express OPEN offers small business owners a wide range of products, services, tools and savings designed to meet their evolving payment and business needs, including: Charge and credit cards Rewards on eligible spend and business-relevant rewards redemption options Travel and concierge services Retail and travel protections such as purchase protection and baggage insurance A five percent discount or two Membership Rewards points for each eligible dollar spent at select suppliers of travel, business services and products through OPEN Savings Expense management tools and reporting Online account management capabilities Resources to help grow and manage a business through our community-driven website, OPEN Forum 6 Client managers for our top-spending and higher-revenue clients to support business growth OPEN engages in advocacy efforts on behalf of small businesses. These advocacy efforts include our OPEN for Government Contracting program to help small businesses learn how to obtain government contracts, programs designed to help women entrepreneurs learn how to grow and sustain businesses, and our efforts to increase awareness of the importance of small businesses in our communities generally. For example, in 2015 we led the sixth Small Business Saturday, a day to increase consumer awareness and patronage of local businesses and their role in the economy and local neighborhoods. Small Business Saturday now takes place in the United States, the United Kingdom and Australia, with similar initiatives in Israel and South Africa. Card-Issuing Business Competition Our payment products face substantial and intense competition and generally compete with a wide variety of financial payment products including cash, foreign currency, checks, debit, prepaid and ATM cards, bank accounts, virtual currencies, alternative financial services such as check cashing and money orders, store-branded gift cards, other network-branded credit and charge cards and other payment accounts and services. As a card issuer, we compete in the United States with financial institutions that issue general-purpose charge and revolving credit cards (such as Bank of America, Capital One Financial, Citibank, Discover Financial Services and JPMorgan Chase). We also encounter competition from businesses that issue their own private label cards or otherwise extend credit to their customers, such as retailers and airline associations, although these cards are generally accepted only at limited locations. We face increasing competition for cobrand relationships, as both card issuer and network competitors have targeted key business partners with attractive value propositions for access to high-spending loyal customers. For example, although we competed aggressively to renew our cobrand and merchant acceptance agreements with Costco Wholesale Corporation in the United States, we were unable in the end to reach terms that would have made economic sense for our Company and our shareholders and in February 2015, we announced that such agreements are set to end in 2016. The largest competing issuers have continued to grow, in several cases by acquiring card portfolios, and also by cross-selling through their retail branch networks. Competing card issuers offer a variety of products and services to attract cardholders, including premium cards with enhanced services or lines of credit, airline frequent flyer program mileage credits, cash rebates and other reward or rebate programs, services for small business owners, \"teaser\" promotional interest rates and rewards points for both credit card acquisition and balance transfers, and cobranded arrangements with partners that offer benefits to cardholders. Most financial institutions that offer demand deposit accounts also issue debit cards to permit depositors to access their funds. Use of debit cards for point-of-sale purchases has grown as most financial institutions have replaced ATM cards with general-purpose debit cards bearing either the Visa or MasterCard logo. Debit cards were historically marketed as replacements for cash and checks, and transactions made with debit cards have typically been for smaller dollar amounts. However, debit cards are increasingly perceived as an alternative to credit or charge cards and used in that manner. Additionally, overdraft accounts can be used by our competitors to extend credit to customers when transaction values exceed monies available in a linked demand deposit account. As the payments industry continues to evolve, we are also facing increasing competition from non-traditional players, such as online networks, telecommunication providers and software-as-a-service providers, which leverage new technologies and customers' existing charge and credit card accounts and bank relationships to create payment or other fee-based solutions. In addition, the evolution of payment products in emerging markets may be different than it has been in developed markets. Instead of migrating from cash to checks to plastic, technology and consumer behaviors in these markets may result in the skipping of one or more steps to alternative payment mechanisms such as mobile payments. For a further discussion of the evolving competitive landscape in the payments industry, see \"Global Network & Merchant Services Competition\" under \"Global Network & Merchant Services.\" The principal competitive factors that affect the card-issuing business include: The features, value and quality of the products and services, including customer care, rewards programs, partnerships, benefits and digital resources, and the costs associated with providing such features and services The number, spending characteristics and credit performance of customers The quantity, diversity and quality of the establishments where the cards can be used The pricing, payment and other card account terms and conditions The number and quality of other payment cards and other forms of payment, such as debit cards and electronic wallets, available to customers Reputation and brand recognition The success of marketing and promotional campaigns The nature and quality of expense management data capture and reporting capability, particularly for small businesses 7 The ability to manage credit and interest rate risk throughout the economic cycle and implement operational and cost efficiencies In addition to the discussion in this section, see \"Our operating results may suffer because of substantial and increasingly intense competition worldwide in the payments industry\" in \"Risk Factors\" for further discussion of the potential impact of competition on our business. Financing Activities We meet our funding needs through a variety of sources, including direct and third-party sourced deposits and debt instruments, such as senior unsecured notes, asset securitizations and secured borrowing facilities. The cost of funding Card Member receivables and loans is a major expense of our card operations. Centurion Bank and American Express Bank finance their charge card receivables and credit card loans, in part, through the issuance of medium-term notes and by accepting consumer deposits in the United States. TRS, Centurion Bank and American Express Bank also fund receivables and loans through asset securitization programs. American Express Credit Corporation, a wholly owned subsidiary of TRS, along with its subsidiaries (collectively, \"Credco\") acquires or finances charge card receivables arising from the use of corporate cards issued in the United States and consumer and corporate charge cards issued in certain countries outside the United States. Credco also acquires or finances revolving credit card loans arising from the use of consumer cards issued in certain countries outside the United States. Credco funds the acquisition or financing of receivables and loans principally through the issuance of medium-term notes. There is a discussion of our financing activities in \"Consolidated Capital Resources and Liquidity\" under \"MD&A\" and Notes 6 and 9 to our Consolidated Financial Statements. In addition, see \"Adverse financial market conditions may significantly affect our ability to meet liquidity needs, access to capital and cost of capital\" in \"Risk Factors.\" Deposit Programs Centurion Bank and American Express Bank accept deposits from individuals through third-party brokerage networks. American Express Bank also accepts deposits directly from consumers through American Express Personal Savings, a set of deposit products, including High-Yield Savings and Certificate of Deposit accounts. As of December 31, 2015, we had approximately $54.1 billion in total U.S. retail deposits. Our deposit-taking activities compete with those of other deposit-taking organizations that source deposits through telephone, internet and other electronic delivery channels, brokerage networks and/or branch locations. We compete primarily in the deposit sector on the basis of rates and our brand and its attributes. Card-Issuing Business and Deposit Programs Regulation We are subject to a variety of laws and regulations applicable to financial institutions that have become increasingly complex and robust, and supervisory efforts to apply relevant laws, regulations and policies have become more intense. Further changes in such laws and regulations or in the regulatory application or judicial interpretation thereof could continue to impact the manner in which we conduct our business and the costs of compliance. We regularly review and, as appropriate, refine our business practices in light of existing and anticipated developments in laws, regulations and industry trends so we can continue to manage our business prudently and consistent with regulatory requirements and expectations. Our charge card, consumer lending and deposit operations are subject to extensive regulation in the United States, including pursuant to: The Equal Credit Opportunity Act (which generally prohibits discrimination in the granting and handling of credit) The Fair Credit Reporting Act (\"FCRA\"), as amended by the Fair and Accurate Credit Transactions Act (\"FACT Act\") (which, among other things, regulates use by creditors of consumer credit reports and credit prescreening practices and requires certain disclosures when an application for credit is rejected) The Credit Card Accountability Responsibility and Disclosure Act of 2009 (the \"CARD Act\") (which prohibits certain acts and practices in connection with consumer credit card accounts) The Truth in Lending Act (\"TILA\") (which, among other things, requires extensive disclosure of the terms upon which credit is granted), including the amendments to TILA that were adopted through the enactment of the Fair Credit and Charge Card Disclosure Act (which mandates certain disclosures on credit and charge card applications) Regulation Z (which implements TILA and was amended by the Federal Reserve to extensively revise the open end consumer credit disclosure requirements and implement the requirements of the CARD Act) 8 The Consumer Financial Protection Act (Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (\"Dodd-Frank\")) (\"CFPA\") The Fair Credit Billing Act (which, among other things, regulates the manner in which billing inquiries are handled and specifies certain billing requirements) The Truth in Savings Act (which requires certain disclosures about rates paid and other terms of deposit accounts) The Electronic Funds Transfer Act (which, among other things, governs disclosures and settlement of transactions for electronic funds transfers and customer rights and liability arising from the use of ATMs and other electronic banking services and, after the enactment of Dodd-Frank, imposes a cap on debit card interchange fees and prohibits exclusivity arrangements for payment card networks) The Telephone Consumer Protection Act (which prohibits contacting customers on their cellular telephones without their express consent, and provides for significant statutory damages) The Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (which established national requirements for sending of commercial email messages and which provides for significant statutory damages for violations) Federal and state laws and regulations that generally prohibit engaging in unfair, deceptive and abusive acts and practices in offering consumer financial products and services In the United States, our marketing and sale of consumer financial products and our compliance with certain federal consumer financial laws, including the CFPA and TILA, are supervised and examined by the CFPB. The CFPB has broad rulemaking and enforcement authority over providers of credit, savings and payment services and products and authority to prevent \"unfair, deceptive or abusive\" acts or practices. The CFPB has the authority to write regulations under federal consumer financial protection laws and to enforce those laws against and examine for compliance large financial institutions like the Company, TRS, Centurion Bank and American Express Bank. It is also authorized to collect fines and require consumer restitution in the event of violations, engage in consumer financial education, track consumer complaints, request data and promote the availability of financial services to underserved consumers and communities. In addition, a number of U.S. states have significant consumer credit protection and disclosure laws (in certain cases more stringent than U.S. federal laws). U.S. federal law also regulates abusive debt collection practices. Bankruptcy and debtor relief laws can affect our ability to collect amounts owed to us. In October 2012, the Company, TRS, Centurion Bank and American Express Bank reached settlements with several bank regulators relating to certain aspects of our U.S. consumer card practices. In December 2013, TRS, Centurion Bank and American Express Bank reached settlements with the FDIC, OCC and CFPB to resolve regulatory reviews of marketing and billing practices related to several credit card add-on products. Internal and regulatory reviews are likely to continue to result in changes to practices, products and procedures. Such reviews are also likely to continue to result in increased costs related to regulatory oversight, supervision and examination and additional restitution to Card Members, and may result in additional regulatory actions, including civil money penalties. We are subject to certain applicable federal and state privacy, data protection and information security laws, rules and regulations, including certain requirements related to breach notification. Such laws also govern the collection, use, sharing and safeguardi