Reserves For Losses (Tables)
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12 Months Ended |
Dec. 31, 2015 |
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| Table Text Block [Abstract] |
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| Changes in the Card Member receivable reserve for losses |
The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31: | (Millions) | | | 2015 | | | 2014 | | | 2013 | | Balance, January 1 | | $ | 465 | | $ | 386 | | $ | 428 | | Provisions(a) | | | 737 | | | 792 | | | 648 | | Net write-offs(b) | | | (713) | | | (683) | | | (669) | | Other(c) | | | (27) | | | (30) | | | (21) | | Balance, December 31 | | $ | 462 | | $ | 465 | | $ | 386 |
- Provisions for principal and fee reserve components.
- Consists of principal and fee components, less recoveries of $401 million, $358 million and $402 million, including net write-offs from TDRs of $60 million, $15 million and $12 million, for the years ended December 31, 2015, 2014 and 2013, respectively.
- Includes foreign currency translation adjustments of $(16) million, $(15) million and $(4) million for the years ended December 31, 2015, 2014 and 2013, respectively; and other adjustments of $(11) million, $(8) million and $(17) million for the years ended December 31, 2015, 2014 and 2013, respectively. Additionally, 2015 includes the impact of the transfer of the HFS receivables portfolio, which was not significant, and 2014 includes an adjustment related to reserves for card-related fraud losses of $(7) million, which was reclassified to Other liabilities.
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| Card Member receivables and related reserves evaluated separately and collectively for impairment |
The following table presents Card Member receivables evaluated individually and collectively for impairment, and related reserves, as of December 31: | (Millions) | | 2015 | | 2014 | | 2013 | | Card Member receivables evaluated individually for impairment(a) | | $ | 33 | | $ | 48 | | $ | 50 | | Related reserves(a) | | $ | 20 | | $ | 35 | | $ | 38 | | Card Member receivables evaluated collectively for impairment | | $ | 44,100 | | $ | 44,803 | | $ | 44,113 | | Related reserves(b) | | $ | 442 | | $ | 430 | | $ | 348 |
- Represents receivables modified as a TDR and related reserves.
- The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment.
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| Changes in the Card Member loans reserve for losses |
The following table presents changes in the Card Member loans reserve for losses for the years ended December 31: | (Millions) | | | 2015 | | | 2014 | | | 2013 | | Balance, January 1 | | $ | 1,201 | | $ | 1,261 | | $ | 1,471 | | Provisions(a) | | | 1,190 | | | 1,138 | | | 1,115 | | Net write-offs | | | | | | | | | | | | Principal(b) | | | (967) | | | (1,023) | | | (1,141) | | | Interest and fees(b) | | | (162) | | | (164) | | | (150) | | Transfer of reserves on HFS loan portfolios | | | (224) | | | ― | | | ― | | Other(c) | | | (10) | | | (11) | | | (34) | | Balance, December 31 | | $ | 1,028 | | $ | 1,201 | | $ | 1,261 |
- Provisions for principal interest and fee reserve components.
- Consists of principal write-offs, less recoveries of $418 million, $428 million and $452 million, including net write-offs/(recoveries) from TDRs of $41 million, $(10) million and $(1) million, for the years ended December 31, 2015, 2014 and 2013, respectively. Recoveries of interest and fees were de minimis.
- Includes foreign currency translation adjustments of $(20) million, $(17) million and $(12) million for the years ended December 31, 2015, 2014 and 2013, respectively, and other adjustments of $10 million, $12 million and $(22) million for the years ended December 31, 2015, 2014 and 2013, respectively. Additionally, 2014 includes an adjustment related to reserves for card-related fraud losses of $(6) million, which were reclassified to Other liabilities.
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| Card Member loans and related reserves evaluated separately and collectively for impairment |
The following table presents Card Member loans evaluated individually and collectively for impairment, and related reserves, as of December 31: | (Millions) | | 2015 | | 2014 | | 2013 | | Card Member loans evaluated individually for impairment (a) | | $ | 279 | | $ | 286 | | $ | 356 | | Related reserves(a) | | $ | 53 | | $ | 67 | | $ | 78 | | Card Member loans evaluated collectively for impairment (b) | | $ | 58,294 | | $ | 70,099 | | $ | 66,882 | | Related reserves(b) | | $ | 975 | | $ | 1,134 | | $ | 1,183 |
- Represents loans modified as a TDR and related reserves.
- Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans, and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment.
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