Reserves For Losses (Tables)

12 Months Ended

Dec. 31, 2017

The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31:

Provisions for principal and fee reserve components.
Principal and fee write-offs are presented less recoveries of $359 million, $391 million and $401 million, including net write-offs from TDRs of $(2) million, $16 million and $60 million, for the years ended December 31, 2017, 2016 and 2015, respectively.
Includes foreign currency translation adjustments of $12 million, $(12) million and $(16) million, and other adjustments of $(17) million, $(5) million and $(11) million for the years ended December 31, 2017, 2016 and 2015, respectively. Additionally, 2015 included the impact of the transfer of the HFS receivables portfolio, which was not significant.

The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of December 31:

(Millions)	2017		2016		2015
Card Member receivables evaluated individually for impairment^(a)	$	80	$	55	$	33
Related reserves^(a)	$	3	$	28	$	20
Card Member receivables evaluated collectively for impairment	$	53,967	$	47,253	$	44,100
Related reserves^(b)	$	518	$	439	$	442

Represents receivables modified as a TDR and related reserves.
The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment.

The following table presents changes in the Card Member loans reserve for losses for the years ended December 31:

(Millions)				2017		2016		2015
Balance, January 1			$	1,223	$	1,028	$	1,201
	Provisions^(a)			1,868		1,235		1,190
	Net write-offs
		Principal^(b)		(1,181)		(930)		(967)
		Interest and fees^(b)		(227)		(175)		(162)
	Transfer of reserves on HFS loan portfolios			―		―		(224)
	Other^(c)			23		65		(10)
Balance, December 31			$	1,706	$	1,223	$	1,028

Provisions for principal, interest and fee reserve components.
Principal write-offs are presented less recoveries of $409 million, $379 million and $418 million, and include net write-offs from TDRs of $30 million, $34 million and $41 million, for the years ended December 31, 2017, 2016 and 2015, respectively. Recoveries of interest and fees were not significant.
Includes foreign currency translation adjustments of $8 million, $(10) million and $(20) million, and other adjustments of $15 million, $8 million and $10 million for the years ended December 31, 2017, 2016 and 2015, respectively. The year ended December 31, 2016 included reserves of $67 million associated with $265 million of retained Card Member loans reclassified from HFS to held for investment as a result of retaining certain loans in connection with the respective sales of JetBlue and Costco cobrand card portfolios.

The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of December 31:

(Millions)	2017		2016		2015
Card Member loans evaluated individually for impairment ^(a)	$	367	$	346	$	279
Related reserves^(a)	$	57	$	60	$	53
Card Member loans evaluated collectively for impairment ^(b)	$	73,032	$	64,919	$	58,294
Related reserves^(b)	$	1,649	$	1,163	$	975

Represents loans modified as a TDR and related reserves.
Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans, and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment.