Reserves For Losses (Tables)

12 Months Ended

Dec. 31, 2018

Table Text Block [Abstract]

Changes in the Card Member receivable reserve for losses

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

(Millions)			2018		2017		2016
Balance, January 1		$	521	$	467	$	462
	Provisions(a)		937		795		696
	Net write-offs(b)		(859)		(736)		(674)
	Other(c)		(26)		(5)		(17)
Balance, December 31		$	573	$	521	$	467

• Provisions for principal and fee reserve components.
• Netwrite-offs are presented less recoveries of $367 million, $366 million and $394 million for the years ended December 31, 2018, 2017 and 2016, respectively. Amounts include net recoveries (write-offs) from TDRs of nil, $2 million and $(16) million, for the years ended December 31, 2018, 2017 and 2016, respectively.
• Includes foreign currency translation adjustments of $(6) million, $12 million and $(12) million, and other adjustments of $(20) million, $(17) million and $(5) million for the years ended December 31, 2018, 2017 and 2016, respectively.

Card Member receivables and related reserves evaluated separately and collectively for impairment

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

(Millions)	2018		2017		2016
Card Member receivables evaluated individually for impairment(a)	$	128	$	80	$	55
Related reserves(a)	$	7	$	3	$	28
Card Member receivables evaluated collectively for impairment	$	55,765	$	53,967	$	47,253
Related reserves(b)	$	566	$	518	$	439

• 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.

Changes in the Card Member loans reserve for losses

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

(Millions)				2018		2017		2016
Balance, January 1			$	1,706	$	1,223	$	1,028
	Provisions(a)			2,266		1,868		1,235
	Net write-offs (b)
		Principal		(1,539)		(1,181)		(930)
		Interest and fees		(304)		(227)		(175)
	Other(c)			5		23		65
Balance, December 31			$	2,134	$	1,706	$	1,223

• Provisions for principal, interest and fee reserve components.
• Principal write-offs are presented less recoveries of $444 million, $409 million and $379 million for the years ended December 31, 2018, 2017 and 2016, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(33) million, $(30) million and $(34) million, for the years ended December 31, 2018, 2017 and 2016, respectively.
• Includes foreign currency translation adjustments of $(11) million, $8 million and $(10) million, and other adjustments of $16 million, $15 million and $8 million for the years ended December 31, 2018, 2017 and 2016, 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.

Card Member loans and related reserves evaluated separately and collectively for impairment

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

(Millions)	2018		2017		2016
Card Member loans evaluated individually for impairment (a)	$	532	$	367	$	346
Related reserves(a)	$	94	$	57	$	60
Card Member loans evaluated collectively for impairment (b)	$	81,322	$	73,032	$	64,919
Related reserves(b)	$	2,040	$	1,649	$	1,163

• 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.