XML 32 R13.htm IDEA: XBRL DOCUMENT

Credit Loss Reserves

3 Months Ended

Mar. 31, 2012

Receivables, Credit Loss Reserves [Abstract]

5. Credit Loss Reserves

An analysis of credit loss reserves was as follows:


Three Months Ended March 31,	2012			2011
	(in millions)
Credit loss reserves at beginning of period	$	5,952		$	5,512
Provision for credit losses		791			708
Charge-offs		(979	)		(1,417	)
Recoveries		101			141

Credit loss reserves at end of period	$	5,865		$	4,944

During the third quarter of 2011, we adopted an Accounting Standards Update which provided additional guidance to determine whether a restructuring of a receivable meets the criteria to be considered a troubled debt restructuring for purposes of the identification and disclosure of TDR Loans as well as for recording impairment. This new accounting guidance continues to impact our provision for credit loss in periods post-adoption, as loans that otherwise would not have qualified for such reporting in the past are now meeting the criteria under the new accounting guidance to be reported and reserved for as TDR Loans which will continue in future periods. Therefore, credit loss reserves at March 31, 2012 and the provision for credit losses during the three months ended March 31, 2012 are not comparable to the three months ended March 31, 2011.

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, 2012 and 2011:


	Real Estate Secured						Personal Non- Credit Card			Comm’l and Other		Total
	First Lien			Second Lien			Personal Non- Credit Card			Comm’l and Other		Total
	(in millions)
Three Months Ended March 31, 2012:
Credit loss reserve analysis:
Credit loss reserve balances at beginning of period	$	4,089		$	823		$	1,040		$	-	$	5,952
Provision for credit losses		642			131			18			-		791
Charge-offs		(568	)		(190	)		(221	)		-		(979	)
Recoveries		8			15			78			-		101

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 less cost to sell		410			1			-			-		411
Loans 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		$	4	$	26,351
Individually evaluated for impairment⁽¹⁾		10,999			1,108			1,339			-		13,446
Receivables carried at the lower of amortized cost or fair value 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		$	4	$	46,041

Three Months Ended March 31, 2011:
Credit loss reserve analysis:
Credit loss reserve balances at beginning of period	$	3,355		$	832		$	1,325		$	-	$	5,512
Provision for credit losses		585			105			18			-		708
Charge-offs		(783	)		(260	)		(374	)		-		(1,417	)
Recoveries		10			17			114			-		141

Net charge-offs		(773	)		(243	)		(260	)		-		(1,276	)

Credit loss reserve balance at end of period	$	3,167		$	694		$	1,083		$	-	$	4,944

Reserve components:
Collectively evaluated for impairment	$	1,189		$	440		$	717		$	-	$	2,346
Individually evaluated for impairment⁽¹⁾		1,847			249			366			-		2,462
Receivables carried at the lower of amortized cost or fair value less cost to sell		116			2			-			-		118
Loans acquired with deteriorated credit quality		15			3			-			-		18

Total credit loss reserves	$	3,167		$	694		$	1,083		$	-	$	4,944

Receivables:
Collectively evaluated for impairment	$	29,747		$	4,440		$	5,857		$	26	$	40,070
Individually evaluated for impairment⁽¹⁾		6,986			598			649			-		8,233
Receivables carried at the lower of amortized cost or fair value less cost to sell		5,299			106			-			-		5,405
Receivables acquired with deteriorated credit quality		34			6			-			-		40

Total receivables	$	42,066		$	5,150		$	6,506		$	26	$	53,748

⁽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 less cost to sell which totaled $3.1 billion and $1.6 billion at March 31, 2012 and 2011, respectively. The reserve component above excludes credit loss reserves for TDR Loans that are carried at the lower of amortized cost or fair value less cost to sell which totaled $204 million and $27 million at March 31, 2012 and 2011, respectively.