Accounts Receivable and Loans (Tables)

12 Months Ended

Dec. 31, 2012

Accounts Receivable and Loans (Tables) [Abstract]

Cardmember receivables segment detail

Accounts receivable as of December 31,2012 and 2011were as follows:

(Millions)	2012		2011
U.S. Card Services(a)	$	21,124	$	20,645
International Card Services		7,778		7,222
Global Commercial Services(b)		13,671		12,829
Global Network & Merchant Services(c)		193		194
Cardmember receivables(d)		42,766		40,890
Less: Reserve for losses		428		438
Cardmember receivables, net	$	42,338	$	40,452
Other receivables, net(e)	$	3,576	$	3,657

• Includes $7.5 billion of gross cardmember receivables available to settle obligations of a consolidated VIE as ofboth December 31, 2012 and 2011.
• Includes $476million and $459million of gross cardmember receivablesavailable tosettle obligations of a consolidated VIE as ofDecember 31, 2012 and 2011, respectively.Also includes $913million and $563million due from airlines, of which Delta Air Lines (Delta) comprises $676million and $340 million as of December 31, 2012 and 2011, respectively.
• Includes receivables primarily related to the Company's International Currency Card portfolios.
• Includes approximately $12.9billion and $12.8billion of cardmember receivables outside the United States as of December 31, 2012 and 2011, respectively.
• Other receivables primarily represent amountsrelated to (i) purchased joint venture receivables,(ii)certain merchants for billed discount revenue, (iii) the Company's travel customers and suppliers, and (iv) other receivables due to the Company in the ordinary course of business. As of December 31, 2011, other receivables also included investments that matured on December 31, 2011, but which did not settle until January 3, 2012. Other receivables are presented net of reserves for losses of $86 million and $102 million as of December 31, 2012 and 2011, respectively.

Cardmember loans segment detail

Loans as of December 31, 2012and 2011consisted of:

(Millions)		2012		2011
U.S. Card Services(a)	$	55,953	$	53,686
International Card Services		9,236		8,901
Global Commercial Services		40		34
Cardmember loans		65,229		62,621
Less: Reserve for losses		1,471		1,874
Cardmember loans, net	$	63,758	$	60,747
Other loans, net(b)	$	551	$	419

• Includes approximately $32.7 billion and $33.8billion of gross cardmember loans availableto settle obligations of a consolidated VIE as of December 31, 2012 and 2011, respectively.
• Other loans primarily represent loans to merchants and a store card loan portfolio whose billed business is not processed on the Company's network. Other loans are presented net of reserves for losses of $20 million and $18 million as of December 31, 2012 and 2011, respectively.

Aging of cardmember loans and receivables

The following table represents the aging of cardmember loans and receivables as of December 31, 2012 and 2011:

					30-59		60-89		90+
					Days		Days		Days
					Past		Past		Past
2012(Millions)			Current		Due		Due		Due		Total
Cardmember
	Loans:
U.S. Card Services		$	55,281	$	200	$	147	$	325	$	55,953
International Card
	Services		9,099		47		30		60		9,236
Cardmember
	Receivables:
U.S. Card Services		$	20,748	$	116	$	76	$	184	$	21,124
International Card
	Services(a)		(b)		(b)		(b)		74		7,778
Global Commercial
	Services(a)		(b)		(b)		(b)		112		13,671
					30-59		60-89		90+
					Days		Days		Days
					Past		Past		Past
2011 (Millions)			Current		Due		Due		Due		Total
Cardmember
	Loans:
U.S. Card Services		$	52,930	$	218	$	165	$	373	$	53,686
International Card
	Services		8,748		52		32		69		8,901
Cardmember
	Receivables:
U.S. Card Services		$	20,246	$	122	$	81	$	196	$	20,645
International Card
	Services(a)		(b)		(b)		(b)		63		7,222
Global Commercial
	Services(a)		(b)		(b)		(b)		109		12,829

• For cardmember receivables in International Card Services (ICS) and Global Commercial Services (GCS), delinquency data is tracked based on days past billing status rather than days past due. A cardmember account is considered 90 days past billing if payment has not been received within 90 days of the cardmember's billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 90 days past billing the associated cardmember receivable balance is considered as 90 days past billing. These amounts are shown above as 90+Days Past Due for presentation purposes.
• Historically, data for periods prior to 90 days past billing are not available due to financial reporting system constraints. Therefore, it has not been relied upon for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

Credit quality indicators for loans and receivables

The following tables present the key credit quality indicators as of or for the years ended December 31:

	2012						2011
	Net Write-Off Rate						Net Write-Off Rate
					30 Days						30 Days
			Principal,		Past Due				Principal,		Past Due
	Principal		Interest, &		as a % of		Principal		Interest, &		as a % of
	Only	(a)	Fees	(a)	Total		Only	(a)	Fees	(a)	Total
Cardmember Loans:
U.S. Card Services	2.1	%	2.3	%	1.2	%	2.9	%	3.2	%	1.4	%
International Card Services	1.9	%	2.4	%	1.5	%	2.7	%	3.3	%	1.7	%
Cardmember Receivables:
U.S. Card Services	1.9	%	2.1	%	1.8	%	1.7	%	1.9	%	1.9	%
					2012				2011
					Net Loss				Net Loss
					Ratio as		90 Days		Ratio as		90 Days
					a % of		Past Billing		a % of		Past Billing
					Charge		as a % of		Charge		as a % of
					Volume		Receivables		Volume		Receivables
Cardmember Receivables:
International Card Services					0.16	%	0.9	%	0.15	%	0.9	%
Global Commercial Services					0.06	%	0.8	%	0.06	%	0.8	%

• The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company's practice is to include uncollectible interest and/or fees as part of its total provision for losses, a net write-off rate including principal, interest and/or fees is also presented.

Impaired cardmember loans and receivables

The following table provides additional information with respect to the Company's impaired cardmemberloans and receivables, which are not significant for ICS and GCS,as of December 31:

		Loans over
		90 Days						Loans &			Total
		Past Due			Non-			Receivables			Impaired		Unpaid
	& Accruing				Accrual			Modified			Loans &		Principal			Allowance
2012 (Millions)		Interest	(a)		Loans	(b)		as a TDR	(c)		Receivables		Balance	(d)		for TDRs	(e)
Cardmember Loans:
U.S. Card Services	$	73		$	426		$	627		$	1,126	$	1,073		$	152
International Card Services		59			5			6			70		69			1
Cardmember Receivables:
U.S. Card Services		―			―			117			117		111			91
Total	$	132		$	431		$	750		$	1,313	$	1,253		$	244
		Loans over
		90 Days						Loans &			Total
		Past Due			Non-			Receivables			Impaired		Unpaid
	& Accruing				Accrual			Modified			Loans &		Principal			Allowance
2011 (Millions)		Interest	(a)		Loans	(b)		as a TDR	(c)		Receivables		Balance	(d)	for TDRs		(e)
Cardmember Loans:
U.S. Card Services	$	64		$	529		$	736		$	1,329	$	1,268		$	174
International Card Services		67			6			8			81		80			2
Cardmember Receivables:
U.S. Card Services		―			―			174			174		165			118
Total	$	131		$	535		$	918		$	1,584	$	1,513		$	294

• The Company's policy is generally to accrue interest through the date of write-off (at 180 days past due). The Company establishes reserves for interest that the Company believes will not be collected. Excludes loans modified as a TDR.
• Non-accrual loans not in modification programs include certain cardmember loans placed with outside collection agencies for which the Company has ceased accruing interest. The Company's policy is generally not to resume the accrual of interest on these loans. Payments received are applied against the recorded loan balance. Interest income is recognized on a cash basis for any payments received after the loan balance has been paid in full.Excludes loans modified as a TDR.
• Total loans and receivables modified as a TDR includes $320 million and $410million that are non-accrual and $6million and $4million that are past due 90 days and still accruing interest as of December 31, 2012 and 2011, respectively.
• Unpaid principal balance consists of cardmember charges billed and excludes other amounts charged directly by the Company such as interest and fees.
• Represents the reserve for losses for TDRs, which are evaluated separately for impairment. The Company records a reserve for losses for all impaired loans. Refer to Cardmember Loans Evaluated Separately and Collectively for Impairment in Note 5 for further discussion of the reserve for losses on loans over 90 days past due and accruing interest and non-accrual loans, which are evaluated collectively for impairment.

Interest income recognized and average balance of impaired cardmember loans and receivables

The following table provides information with respect to the Company's interest income recognized and average balances of impaired cardmember loans and receivables, which are not significant for ICS and GCS, for the years ended December 31:

	2012
		Interest
		Income		Average
(Millions)		Recognized		Balance
Cardmember Loans:
U.S. Card Services	$	60	$	1,221
International Card Services		16		75
Cardmember Receivables:
U.S. Card Services		―		135
Total	$	76	$	1,431
	2011
		Interest
		Income		Average
(Millions)		Recognized		Balance
Cardmember Loans:
U.S. Card Services	$	67	$	1,498
International Card Services		26		98
Cardmember Receivables:
U.S. Card Services		―		145
Total	$	93	$	1,741

Troubled debt restructurings

The following table provides additional information with respect to the cardmember loans and receivables modified as TDRs, which are not significant for ICS,for the years ended December 31:

				Aggregated		Aggregated
				Pre-		Post-
2012			Modification		Modification
(Accounts in thousands,		Number of	Outstanding		Outstanding
Dollars in millions)		Accounts		Balances(a)		Balances(a)
Troubled Debt
Restructurings:
U.S. Card Services ―
	Cardmember Loans	106	$	779	$	762
U.S. Card Services ―
	Cardmember Receivables	37		425		418
Total(b)		143	$	1,204	$	1,180
				Aggregated		Aggregated
				Pre-		Post-
2011			Modification		Modification
(Accounts in thousands,		Number of	Outstanding		Outstanding
Dollars in millions)		Accounts		Balances(a)		Balances(a)
Troubled Debt
Restructurings:
U.S. Card Services ―
	Cardmember Loans	147	$	1,110	$	1,064
U.S. Card Services ―
	Cardmember Receivables	50		402		388
Total(b)		197	$	1,512	$	1,452

• Includes principal and accrued interest.
• The difference between the pre- and post-modification outstanding balances is attributable to amounts charged off for cardmember loans and receivables being resolved through the Company's short-term settlement programs.

Troubled debt restructurings that subsequently defaulted

The following table provides information for the years ended December 31, 2012 and 2011, with respect to the cardmember loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A cardmember will default from a modification program afterone and up to three consecutive missed payments, depending on the terms of the modification program. The defaulted ICS cardmember loan modifications were not significant.

				Aggregated
2012			Outstanding
(Accounts in thousands,		Number of		Balances
Dollars in millions)		Accounts	Upon Default(a)
Troubled Debt Restructurings
That Subsequently Defaulted:
U.S. Card Services ―
	Cardmember Loans	23	$	182
U.S. Card Services ―
	Cardmember Receivables	1		37
Total		24	$	219
				Aggregated
2011			Outstanding
(Accounts in thousands,		Number of		Balances
Dollars in millions)		Accounts	Upon Default(a)
Troubled Debt Restructurings
That Subsequently Defaulted:
U.S. Card Services ―
	Cardmember Loans	46	$	343
U.S. Card Services ―
	Cardmember Receivables	6		45
Total		52	$	388

• The outstanding balance includes principal and accrued interest.