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Receivables Held for Sale (Tables)
 12 Months Ended
Dec. 31, 2012
Receivables Held-for-sale [Abstract]  
Summary of Receivables Held for Sale
The following table summarizes receivables held for sale which are carried at the lower of amortized cost or fair value:

At December 31,
2012
 
2011
 
(in millions)
First lien real estate secured
$
3,022

 
$
—

Personal non-credit card
3,181

 
—

Total receivables held for sale
$
6,203

 
$
—
Summary of Activity in Receivables Held for Sale
The table below summarizes the activity in receivables held for sale during 2012, 2011 and 2010.

Year ended December 31,
2012
 
2011
 
2010
 
(in millions)
Receivables held for sale at beginning of period
$
—


$
4

 
$
3

Transfers into receivables held for sale at the lower of amortized cost or fair value:
 
 
 
 
 
First lien real estate secured
3,287

 
—

 
—

Personal non-credit card
3,469

 
—

 
—

Additional lower of amortized cost or fair value adjustment subsequent to transfer to receivables held for sale
18

  
1

 
2

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(264
)
 
—

 
—

Transfer into receivables held for investment at the lower of amortized cost or fair value
—

 
(5
)
 
—

Change in receivable balance
(307
)
 
—

 
(1
)
Receivables held for sale at end of period(1)
$
6,203

  
$
—

 
$
4

 
(1) 
Net of a valuation allowance of $1.5 billion at December 31, 2012
Summary of Components of Cumulative Lower of Amortized Cost or Fair Value Adjustment
The following table summarizes the components of the cumulative lower of amortized cost or fair value adjustment recorded during 2012:
 
Lower of Amortized Cost or Fair Value Adjustments Associated With
 
 
 
Fair Value
 
REO
 
Short Sales
 
Total
 
(in millions)
Lower of amortized cost or fair value adjustments recorded as a component of:
 
 
 
 
 
 
 
Provision for credit losses(1)
$
112

 
$
—

 
$
—

 
$
112

Other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment(2)
1,547

 
—

 
—

 
1,547

Subsequent to initial transfer to held for sale(3)
52

 
(50
)
 
(20
)
 
(18
)
Total recorded through other revenues
1,599

 
(50
)
 
(20
)
 
1,529

Lower of amortized cost or fair value adjustment
$
1,711

 
$
(50
)
 
$
(20
)
 
$
1,641

 
(1) 
The portion of the initial lower of amortized cost or fair value adjustment attributable to credit for personal non-credit card receivables which was recorded as a provision for credit losses in the consolidated statement of income (loss). This was determined by giving consideration to the impact of over-the-life credit loss estimates as compared to the existing credit loss reserves prior to our decision to transfer to receivables held for sale. There was no lower of cost or fair value adjustment allocated to credit for the real estate secured receivables as these receivables were previously carried at the lower of amortized cost or fair value of the collateral less cost to sell prior to the transfer of the loans to held for sale.
(2) 
The portion of the lower of amortized cost or fair value adjustment which reflects the impact on value caused by current marketplace conditions including changes in interest rates and illiquidity and is recorded as a component of total other revenues in the consolidated statement of income (loss).
(3) 
The additional lower of amortized cost or fair value adjustments subsequent to the transfer to receivable held for sale associated with fair value reflects the change in the fair value of the receivables held for sale, net of reversals associated with liquidations other than REO and short sales.