Reserves for Losses

3 Months Ended

Mar. 31, 2019

Reserves For Losses Card Member Loans and Receivables Disclosure [Abstract]

4. Reserves for Losses

Reserves for losses relating to Card Member loans and receivables represent management’s best estimate of the probable inherent losses in our outstanding portfolio of loans and receivables as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Changes in Card Member Loans Reserve for Losses

The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31:

(Millions)			2019		2018
Balance, January 1			$	2,134	$	1,706
	Provisions^(a)			525		499
	Net write-offs^(b)
		Principal		(457)		(358)
		Interest and fees		(92)		(71)
	Other^(c)			11		10
Balance, March 31			$	2,121	$	1,786

Provisions for principal, interest and fee reserve components.
Principal write-offs are presented less recoveries of $124 million and $106 million for the three months ended March 31, 2019 and 2018, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(15) million and $(7) million for the three months ended March 31, 2019 and 2018, respectively.
Includes foreign currency translation adjustments of $6 million and $6 million and other adjustments of $5 million and $4 million for the three months ended March 31, 2019 and 2018, respectively.

Card Member Loans Evaluated Individually and Collectively for Impairment

The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of March 31, 2019 and December 31, 2018:

(Millions)	2019		2018
Card Member loans evaluated individually for impairment^(a)	$	588	$	532
Related reserves ^(a)	$	108	$	94
Card Member loans evaluated collectively for impairment^(b)	$	80,407	$	81,322
Related reserves ^(b)	$	2,013	$	2,040

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.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31:

(Millions)		2019		2018
Balance, January 1		$	573	$	521
	Provisions^(a)		253		242
	Net write-offs^(b)		(216)		(199)
	Other^(c)		(2)		1
Balance, March 31		$	608	$	565

Provisions for principal and fee reserve components.
Net write-offs are presented less recoveries of $91 million and $90 million for the three months ended March 31, 2019 and 2018, respectively. Amounts include net (write-offs) recoveries from TDRs of $(4) million and $2 million, for the three months ended March 31, 2019 and 2018, respectively.
Includes foreign currency translation adjustments of $3 million and $10 million and other adjustments of $(5) million and $(9) million for the three months ended March 31, 2019 and 2018, respectively.

Card Member Receivables Evaluated Individually and Collectively for Impairment

The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of March 31, 2019 and December 31, 2018:

(Millions)	2019		2018
Card Member receivables evaluated individually for impairment^(a)	$	145	$	128
Related reserves ^(a)	$	7	$	7
Card Member receivables evaluated collectively for impairment	$	56,690	$	55,765
Related reserves ^(b)	$	601	$	566

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.