Reserves For Losses (Tables)

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

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)	2019		2018		2017
Balance, January 1	$	2,134	$	1,706	$	1,223
Provisions(a)	2,462		2,266		1,868
Net write-offs (b)
Principal	(1,860)		(1,539)		(1,181)
Interest and fees	(375)		(304)		(227)
Other(c)	22		5		23
Balance, December 31	$	2,383	$	2,134	$	1,706

(a)Provisions for principal, interest and fee reserve components.

(b)Principal write-offs are presented less recoveries of $525 million, $444 million and $409 million for the years ended December 31, 2019, 2018 and 2017, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(79) million, $(33) million and $(30) million for the years ended December 31, 2019, 2018 and 2017, respectively.

(c)Includes foreign currency translation adjustments of $4 million, $(11) million and $8 million, and other adjustments of $18 million, $16 million and $15 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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)	2019		2018		2017
Card Member loans evaluated individually for impairment (a)	$	810	$	532	$	367
Related reserves(a)	$	159	$	94	$	57
Card Member loans evaluated collectively for impairment (b)	$	86,571	$	81,322	$	73,032
Related reserves(b)	$	2,224	$	2,040	$	1,649

(a)Represents loans modified as a TDR and related reserves.

(b)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 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)	2019		2018		2017
Balance, January 1	$	573	$	521	$	467
Provisions(a)	963		937		795
Net write-offs(b)	(900)		(859)		(736)
Other(c)	(17)		(26)		(5)
Balance, December 31	$	619	$	573	$	521

(a)Provisions for principal and fee reserve components.

(b)Net write-offs are presented less recoveries of $374 million, $367 million and $366 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amounts include net recoveries (write-offs) from TDRs of $(16) million, nil and $2 million, for the years ended December 31, 2019, 2018 and 2017, respectively.

(c)Includes foreign currency translation adjustments of nil, $(6) million and $12 million, and other adjustments of $(17) million, $(20) million and $(17) million for the years ended December 31, 2019, 2018 and 2017, 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)	2019		2018		2017
Card Member receivables evaluated individually for impairment(a)	$	211	$	128	$	80
Related reserves(a)	$	9	$	7	$	3
Card Member receivables evaluated collectively for impairment	$	57,202	$	55,765	$	53,967
Related reserves(b)	$	610	$	566	$	518

(a)Represents receivables modified as a TDR and related reserves.

(b)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.