Credit Loss Reserves

A rollforward of credit loss reserves for receivables in continuing operations for the three months ended March 31, 2013 and 2012 was as follows:



	2013			2012
	(in millions)
Credit loss reserves at beginning of period	$	4,607		$	5,952
Provision for credit losses	24			791
Net charge-offs:
Charge-offs	(399		)	(979		)
Recoveries	73			101
Total net charge-offs	(326		)	(878		)
Other	8			—
Credit loss reserves at end of period	$	4,313		$	5,865

The following table summarizes the changes in credit loss reserves by product/class and the related receivable balance by product during the three months ended March 31, 2013 and 2012:



	Real Estate Secured						Personal Non- Credit Card			Total
	First Lien			Second Lien			Personal Non- Credit Card			Total
	(in millions)
Three Months Ended March 31, 2013:
Credit loss reserve balances at beginning of period	$	3,867		$	740		$	—		$	4,607
Provision for credit losses	16			40			(32		)	24
Net charge-offs:
Charge-offs	(301		)	(98		)	—			(399		)
Recoveries	29			12			32			73
Total net charge-offs	(272		)	(86		)	32			(326		)
Other	8			—			—			8
Credit loss reserve balance at end of period	$	3,619		$	694		$	—		$	4,313
Reserve components:
Collectively evaluated for impairment	$	615		$	206		$	—		$	821
Individually evaluated for impairment⁽¹⁾	2,846			486			—			3,332
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell	153			1			—			154
Receivables acquired with deteriorated credit quality	5			1			—			6
Total credit loss reserves	$	3,619		$	694		$	—		$	4,313
Receivables:
Collectively evaluated for impairment	$	15,241		$	2,275		$	—		$	17,516
Individually evaluated for impairment⁽¹⁾	10,968			1,125			—			12,093
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell	2,240			66			—			2,306
Receivables acquired with deteriorated credit quality	12			3			—			15
Total receivables	$	28,461		$	3,469		$	—		$	31,930
Three Months Ended March 31, 2012:
Credit loss reserve balances at beginning of period	$	4,089		$	823		$	1,040		$	5,952
Provision for credit losses	642			131			18			791
Net charge-offs:
Charge-offs	(568		)	(190		)	(221		)	(979		)
Recoveries	8			15			78			101
Total net charge-offs	(560		)	(175		)	(143		)	(878		)
Credit loss reserve balance at end of period	$	4,171		$	779		$	915		$	5,865
Reserve components:
Collectively evaluated for impairment	$	679		$	228		$	259		$	1,166
Individually evaluated for impairment⁽¹⁾	3,074			549			656			4,279
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell	410			1			—			411
Receivables acquired with deteriorated credit quality	8			1			—			9
Total credit loss reserves	$	4,171		$	779		$	915		$	5,865
Receivables:
Collectively evaluated for impairment	$	19,855		$	3,037		$	3,455		$	26,347
Individually evaluated for impairment⁽¹⁾	10,999			1,108			1,339			13,446
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell	6,132			72			—			6,204
Receivables acquired with deteriorated credit quality	35			5			—			40
Total receivables	$	37,021		$	4,222		$	4,794		$	46,037

⁽¹⁾

These amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow impairment analysis is then applied to these groups of TDR Loans. The receivable balance above excludes TDR Loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $1.7 billion and $3.1 billion at March 31, 2013 and 2012, respectively. The reserve component above excludes credit loss reserves for TDR Loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $107 million and $204 million at March 31, 2013 and 2012, respectively. These credit loss reserves are reflected within receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell in the table above.