Loan Receivables and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

At December 31 ($ in millions)	2016		2015
Credit cards	$	73,580	$	65,773
Consumer installment loans	1,384		1,154
Commercial credit products	1,333		1,323
Other	40		40
Total loan receivables, before allowance for losses(a)(b)	$	76,337	$	68,290

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(a) Total loan receivables include$24.0 billion and $25.5 billionof restricted loans of consolidated securitization entities atDecember 31, 2016 and 2015, respectively. See Note 5. Variable Interest Entitiesfor further information on these restricted loans.

(b) At December 31, 2016 and 2015, loan receivables included deferred expense, net of deferred income, of$82 million and $63 million, respectively.

Allowance for Credit Losses on Financing Receivables

Allowance for Loan Losses

($ in millions)	Balance at January 1, 2016		Provision charged to operations		Gross charge-offs			Recoveries		Balance at December 31, 2016
Credit cards	$	3,420	$	3,898	$	(3,873	)	$	809	$	4,254
Consumer installment loans	26		43		(45		)	13		37
Commercial credit products	50		45		(51		)	8		52
Other	1		—		—			—		1
Total	$	3,497	$	3,986	$	(3,969	)	$	830	$	4,344

($ in millions)	Balance at January 1, 2015		Provision charged to operations		Gross charge-offs			Recoveries		Balance at December 31, 2015
Credit cards	$	3,169	$	2,880	$	(3,289	)	$	660	$	3,420
Consumer installment loans	22		25		(35		)	14		26
Commercial credit products	45		46		(47		)	6		50
Other	—		1		—			—		1
Total	$	3,236	$	2,952	$	(3,371	)	$	680	$	3,497

($ in millions)	Balance at January 1, 2014		Provision charged to operations		Gross charge-offs			Recoveries		Balance at December 31, 2014
Credit cards	$	2,827	$	2,858	$	(3,111	)	$	595	$	3,169
Consumer installment loans	19		20		(30		)	13		22
Commercial credit products	46		39		(48		)	8		45
Total	$	2,892	$	2,917	$	(3,189	)	$	616	$	3,236

Past Due Financing Receivables

Delinquent and Non-accrual Loans

At December 31, 2016 ($ in millions)	30-89 days delinquent			90 or more days delinquent			Total past due			90 or more days delinquent and accruing			Total non-accruing
Credit cards	$	1,695		$	1,524		$	3,219		$	1,524		$	—
Consumer installment loans	19			4			23			—			4
Commercial credit products	35			18			53			18			—
Total delinquent loans	$	1,749		$	1,546		$	3,295		$	1,542		$	4
Percentage of total loan receivables	2.3		%	2.0		%	4.3		%	2.0		%	—		%

At December 31, 2015 ($ in millions)	30-89 days delinquent			90 or more days delinquent			Total past due			90 or more days delinquent and accruing			Total non-accruing
Credit cards	$	1,451		$	1,257		$	2,708		$	1,257		$	—
Consumer installment loans	16			3			19			—			3
Commercial credit products	32			13			45			13			—
Total delinquent loans	$	1,499		$	1,273		$	2,772		$	1,270		$	3
Percentage of total loan receivables	2.2		%	1.9		%	4.1		%	1.9		%	—		%

Troubled Debt Restructurings on Financing Receivables

and reducing the interest rate on the loan. The permanent program does not normally provide for the forgiveness of unpaid principal but may allow for the reversal of certain unpaid interest or fee assessments. We also make loan modifications for customers who request financial assistance through external sources, such as consumer credit counseling agency programs. These loans typically receive a reduced interest rate but continue to be subject to the original minimum payment terms and do not normally include waiver of unpaid principal, interest or fees. The following table provides information on loans that entered a loan modification program during the periods presented:

For the years ended December 31 ($ in millions)	2016		2015
Credit cards	$	581	$	499
Consumer installment loans	—		—
Commercial credit products	4		5
Total	$	585	$	504

Impaired Financing Receivables

The following table provides information about loans classified as TDRs and specific reserves. We do not evaluate credit card loans for impairment on an individual basis but instead estimate an allowance for loan losses on a collective basis. As a result, there are no impaired loans for which there is no allowance.

At December 31, 2016 ($ in millions)	Total recorded investment		Related allowance			Net recorded investment		Unpaid principal balance
Credit cards	$	862	$	(321	)	$	541	$	761
Consumer installment loans	—		—			—		—
Commercial credit products	6		(3		)	3		5
Total	$	868	$	(324	)	$	544	$	766

At December 31, 2015 ($ in millions)	Total recorded investment		Related allowance			Net recorded investment		Unpaid principal balance
Credit cards	$	756	$	(256	)	$	500	$	659
Consumer installment loans	—		—			—		—
Commercial credit products	7		(3		)	4		6
Total	$	763	$	(259	)	$	504	$	665

Financial Effect of TDRs

As part of our loan modifications for borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. The following table presents the types and financial effects of loans modified and accounted for as TDRs during the periods presented:

Years ended December 31,	2016						2015						2014
($ in millions)	Interest income recognized during period when loans were impaired		Interest income that would have been recorded with original terms		Average recorded investment		Interest income recognized during period when loans were impaired		Interest income that would have been recorded with original terms		Average recorded investment		Interest income recognized during period when loans were impaired		Interest income that would have been recorded with original terms		Average recorded investment
Credit cards	$	48	$	178	$	805	$	49	$	151	$	727	$	56	$	140	$	745
Consumer installment loans	—		—		—		—		—		—		—		—		—
Commercial credit products	—		1		6		—		2		7		—		2		10
Total	$	48	$	179	$	811	$	49	$	153	$	734	$	56	$	142	$	755

Troubled Debt Restructurings on Financing Receivables, Subsequent Default

The following table presents the type, number and amount of loans accounted for as TDRs that enrolled in a modification plan within the previous 12 months from the applicable balance sheet date and experienced a payment default during the periods presented. A customer defaults from a modification program after two consecutive missed payments.

Years ended December 31,	2016			2015			2014
($ in millions)	Accounts defaulted	Loans defaulted		Accounts defaulted	Loans defaulted		Accounts defaulted	Loans defaulted
Credit cards	35,648	$	72	28,126	$	56	29,313	$	60
Consumer installment loans	—	—		—	—		—	—
Commercial credit products	84	1		95	1		159	1
Total	35,732	$	73	28,221	$	57	29,472	$	61

Financing Receivable Credit Quality Indicators

Our loan receivables portfolio includes both secured and unsecured loans. Secured loan receivables are largely comprised of consumer installment loans secured by equipment. Unsecured loan receivables are largely comprised of our open-ended consumer and commercial revolving credit card loans. As part of our credit risk management activities, on an ongoing basis, we assess overall credit quality by reviewing information related to the performance of a customer’s account with us, as well as information from credit bureaus, such as a Fair Isaac Corporation (“FICO”) or other credit scores, relating to the customer’s broader credit performance. FICO scores are generally obtained at origination of the account and are refreshed, at a minimum quarterly, but could be as often as weekly, to assist in predicting customer behavior. We categorize these credit scores into the following three credit score categories: (i) 661 or higher, which are considered the strongest credits; (ii) 601 to 660, considered moderate credit risk; and (iii) 600 or less, which are considered weaker credits. There are certain customer accounts for which a FICO score is not available where we use alternative sources to assess their credit and predict behavior. The following table provides the most recent FICO scores available for our customers atDecember 31, 2016 and 2015, respectively, as a percentage of each class of loan receivable. The table below excludes0.7% and 0.9%of our total loan receivables balance atDecember 31, 2016 and 2015, respectively, which represents those customer accounts for which a FICO score is not available.

At December 31	2016						2015
	661 or		601 to		600 or		661 or		601 to		600 or
	higher		660		less		higher		660		less
Credit cards	72.6	%	19.7	%	7.7	%	73.0	%	19.8	%	7.2	%
Consumer installment loans	77.9	%	16.3	%	5.8	%	77.7	%	16.6	%	5.7	%
Commercial credit products	87.1	%	8.5	%	4.4	%	86.8	%	8.7	%	4.5	%

Interest Income and Interest Expense Disclosure

The following table provides additional information about our interest and fees on loans from our loan receivables, including held for sale:

For the years ended December 31 ($ in millions)	2016		2015		2014
Credit cards	14,424		$	12,932	$	11,967
Consumer installment loans	117		104		99
Commercial credit products	139		142		149
Other	2		1		1
Total	$	14,682	$	13,179	$	12,216