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Condensed Consolidated Statements of Earnings (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Interest income:    
Interest and fees on loans (Note 4) $ 4,340 $ 4,687
Interest on cash and debt securities 67 99
Total interest income 4,407 4,786
Interest expense:    
Interest on deposits 356 375
Interest on senior unsecured notes 88 85
Total interest expense 517 560
Net interest income 3,890 4,226
Retailer share arrangements (926) (954)
Provision for credit losses (Note 4) 1,677 [1] 859 [2]
Net interest income, after retailer share arrangements and provision for credit losses 1,287 2,413
Other income:    
Interchange revenue 161 165
Debt cancellation fees 69 68
Loyalty programs (158) (167)
Other 25 26
Total other income 97 92
Other expense:    
Employee costs 324 353
Professional fees 197 232
Marketing and business development 111 123
Information processing 123 113
Other 247 222
Total other expense 1,002 1,043
Earnings before provision for income taxes 382 1,462
Provision for income taxes (Note 12) 96 355
Net earnings 286 1,107
Net earnings available to common stockholders $ 275 $ 1,107
Earnings per share    
Basic (in usd per share) $ 0.45 $ 1.57
Diluted (in usd per share) $ 0.45 $ 1.56
Variable Interest Entity, Primary Beneficiary    
Interest income:    
Interest and fees on loans (Note 4) $ 1,300 $ 1,200
Interest expense:    
Interest on borrowings of consolidated securitization entities 73 100
Provision for credit losses (Note 4) $ 536 $ 188
[1]
The allowance for credit losses at March 31, 2020 reflects our estimate of expected credit losses for the life of the loan receivables on our condensed consolidated statement of financial position at March 31, 2020, which includes the consideration of current and expected macroeconomic conditions that existed at that date.
[2]
Comparative information is presented in accordance with applicable accounting standards in effect prior to the adoption of ASU 2016-13.