NOTE 10
Debt
Short-Term Borrowings
The Company's short-term borrowings outstanding, defined as borrowings with original maturities of less than one year, as of December 31 were as follows:
| 2013 | 2012 | |||||||||||
| (Millions, except percentages) | Outstanding Balance | Year-End Stated Rate on Debt | (a) | Outstanding Balance | Year-End Stated Rate on Debt | (a) | ||||||
| Commercial paper | $ | 200 | 0.19 | % | $ | ― | ― | % | ||||
| Other short-term borrowings(b)(c) | 4,821 | 1.08 | 3,314 | 1.46 | ||||||||
| Total | $ | 5,021 | 1.03 | % | $ | 3,314 | 1.46 | % | ||||
Long-term Debt
The Company's long-term debt outstanding, defined as debt with original maturities of one year or greater, as of December 31 was as follows:
| 2013 | 2012 | |||||||||||||||||
| (Millions, except percentages) | Maturity Dates | Outstanding Balance | (a) | Year-End Stated Rate on Debt | (b) | Year-End Effective Interest Rate with Swaps | (b)(c) | Outstanding Balance | (a) | Year-End Stated Rate on Debt | (b) | Year-End Effective Interest Rate with Swaps | (b)(c) | |||||
| American Express Company | ||||||||||||||||||
| (Parent Company only) | ||||||||||||||||||
| Fixed Rate Senior Notes | 2014-2042 | $ | 8,784 | 5.43 | % | 4.60 | % | $ | 8,848 | 5.78 | % | 4.95 | % | |||||
| Floating Rate Senior Notes | 2018 | 850 | 0.84 | ― | ― | ― | ― | |||||||||||
| Subordinated Debentures(d) | 2036 | 749 | 6.80 | ― | 749 | 6.80 | ― | |||||||||||
| American Express Credit Corporation | ||||||||||||||||||
| Fixed Rate Senior Notes | 2014-2018 | 14,875 | 3.13 | 2.03 | 17,163 | 4.20 | 2.39 | |||||||||||
| Floating Rate Senior Notes | 2014-2016 | 2,855 | 1.14 | ― | 2,203 | 1.59 | ― | |||||||||||
| Borrowings under Bank Credit Facilities | 2015-2016 | 4,012 | 4.18 | ― | 4,672 | 4.87 | ― | |||||||||||
| American Express Centurion Bank | ||||||||||||||||||
| Fixed Rate Senior Notes | 2015-2017 | 2,102 | 4.12 | 3.32 | 2,120 | 4.12 | 3.32 | |||||||||||
| Floating Rate Senior Notes | 2015-2018 | 675 | 0.67 | ― | 550 | 0.76 | ― | |||||||||||
| American Express Bank, FSB | ||||||||||||||||||
| Fixed Rate Senior Notes | 2017 | 999 | 6.00 | ― | 2,764 | 5.68 | 3.68 | |||||||||||
| Floating Rate Senior Notes | 2017 | 300 | 0.47 | ― | 300 | 0.51 | ― | |||||||||||
| American Express Charge Trust II | ||||||||||||||||||
| Floating Rate Senior Notes | 2016-2018 | 4,200 | 0.49 | ― | 3,000 | 0.49 | ― | |||||||||||
| Floating Rate Subordinated Notes | 2016-2018 | 87 | 0.80 | ― | ― | ― | ― | |||||||||||
| American Express Lending Trust | ||||||||||||||||||
| Fixed Rate Senior Notes | 2015-2016 | 2,600 | 0.72 | ― | 2,100 | 0.65 | ― | |||||||||||
| Floating Rate Senior Notes | 2014-2018 | 10,685 | 0.81 | ― | 12,810 | 0.90 | ― | |||||||||||
| Fixed Rate Subordinated Notes | 2015 | 300 | 1.08 | ― | 300 | 1.08 | ― | |||||||||||
| Floating Rate Subordinated Notes | 2014-2018 | 847 | 0.81 | ― | 1,091 | 0.93 | ― | |||||||||||
| Other | ||||||||||||||||||
| Fixed Rate Instruments(e) | 2014-2030 | 239 | 3.95 | ― | 123 | 5.94 | ― | |||||||||||
| Floating Rate Borrowings | 2014-2016 | 276 | 0.62 | ― | % | 292 | 0.65 | ― | % | |||||||||
| Unamortized Underwriting Fees | (105) | (112) | ||||||||||||||||
| Total Long-Term Debt | $ | 55,330 | 2.56 | % | $ | 58,973 | 3.04 | % | ||||||||||
As of December 31, 2013 and 2012, the Parent Company had $750 million principal outstanding of Subordinated Debentures that accrue interest at an annual rate of 6.8 percent until September 1, 2016, and at an annual rate of three-month LIBOR plus 2.23 percent thereafter. At the Company's option, the Subordinated Debentures are redeemable for cash after September 1, 2016 at 100 percent of the principal amount plus any accrued but unpaid interest. If the Company fails to achieve specified performance measures, it will be required to issue common shares and apply the net proceeds to make interest payments on the Subordinated Debentures. No dividends on the Company's common or preferred shares could be paid until such interest payments are made. The Company would fail to meet these specific performance measures if (i) the Company's tangible common equity is less than 4 percent of total adjusted assets for the most recent quarter or (ii) if the trailing two quarters' consolidated net income is equal to or less than zero and tangible common equity as of the trigger determination date, and as of the end of the quarter end six months prior, has in each case declined by 10 percent or more from tangible common equity as of the end of the quarter 18 months prior to the trigger determination date. The Company met the specified performance measures in 2013.
Aggregate annual maturities on long-term debt obligations (based on final maturity dates) as of December 31, 2013 were as follows:
| (Millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||
| American Express Company (Parent Company only) | $ | 1,250 | $ | ― | $ | 600 | $ | 1,500 | $ | 3,850 | $ | 3,939 | $ | 11,139 | |||||||
| American Express Credit Corporation | 4,420 | 7,010 | 7,293 | 1,500 | 1,340 | ― | 21,563 | ||||||||||||||
| American Express Centurion Bank | ― | 1,305 | ― | 1,300 | 125 | 1 | 2,731 | ||||||||||||||
| American Express Bank, FSB | ― | ― | ― | 1,300 | ― | ― | 1,300 | ||||||||||||||
| American Express Charge Trust II | ― | ― | 3,000 | ― | 1,287 | ― | 4,287 | ||||||||||||||
| American Express Lending Trust | 4,000 | 5,423 | 500 | 1,623 | 2,886 | ― | 14,432 | ||||||||||||||
| Other | 179 | 143 | 161 | ― | ― | 32 | 515 | ||||||||||||||
| $ | 9,849 | $ | 13,881 | $ | 11,554 | $ | 7,223 | $ | 9,488 | $ | 3,972 | 55,967 | |||||||||
| Unamortized Underwriting Fees | (105) | ||||||||||||||||||||
| Unamortized Discount and Premium | (960) | ||||||||||||||||||||
| Impacts due to Fair Value Hedge Accounting | 428 | ||||||||||||||||||||
| Total Long-Term Debt | $ | 55,330 | |||||||||||||||||||
As of December 31, 2013 and 2012, the Company maintained total bank lines of credit of $7.0 billion and $7.7 billion, respectively. Of the total credit lines, $3.0 billion was undrawn as of both December 31, 2013 and 2012. Undrawn amounts support commercial paper borrowings and contingent funding needs. $4.8 billion and $2.2 billion of these credit facilities will expire in 2015 and 2016, respectively. The availability of these credit lines is subject to the Company's compliance with certain financial covenants, principally, the maintenance by American Express Credit Corporation (Credco) of a 1.25 ratio of combined earnings and fixed charges to fixed charges. As of December 31, 2013 and 2012, the Company was not in violation of any of its debt covenants.
Additionally, the Company maintained a 3-year committed, revolving, secured borrowing facility that gives the Company the right to sell up to $3.0 billion face amount of eligible notes issued from the Charge Trust II at any time through July 15, 2016. As of December 31, 2013, $3.0 billion was drawn on this facility. This facility was repaid on January 15, 2014.
The Company paid $44.9 million and $46.7 million in fees to maintain these lines in 2013 and 2012, respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are they dependent on the Company's credit rating.
The Company paid total interest primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits of $2.0 billion, $2.2 billion and $2.4 billion in 2013, 2012 and 2011, respectively.