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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 2011 were 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 of both December 31, 2012 and 2011.
  • Includes $476 million and $459 million of gross cardmember receivables available to settle obligations of a consolidated VIE as of December 31, 2012 and 2011, respectively. Also includes $913 million and $563 million due from airlines, of which Delta Air Lines (Delta) comprises $676 million 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 $12.9 billion and $12.8 billion of cardmember receivables outside the United States as of December 31, 2012 and 2011, respectively.
  • Other receivables primarily represent amounts related 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, 2012 and 2011 consisted 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 $33.8 billion of gross cardmember loans available to 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 cardmember loans 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 $410 million that are non-accrual and $6 million and $4 million 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 after one 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.