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Accounts Receivable and Loans (Tables)
 12 Months Ended
Dec. 31, 2013
Accounts Receivable and Loans (Tables) [Abstract]  
Card Member receivables segment detail

Accounts receivable as of December 31, 2013 and 2012 consisted of:

(Millions) 2013 2012
U.S. Card Services(a) $21,842 $21,124
International Card Services  7,771  7,778
Global Commercial Services(b)  14,391  13,671
Global Network & Merchant Services(c)  159  193
Card Member receivables(d)  44,163  42,766
Less: Reserve for losses  386  428
Card Member receivables, net  43,777  42,338
Other receivables, net(e) $3,408 $3,576

  • Includes $7.3 billion and $7.5 billion of gross Card Member receivables available to settle obligations of consolidated VIEs as of December 31, 2013 and 2012, respectively.
  • Includes $476 million of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2012. Also includes $836 million and $913 million due from airlines, of which Delta Air Lines (Delta) comprises $628 million and $676 million as of December 31, 2013 and 2012, respectively.
  • Includes receivables primarily related to the Company's International Currency Card portfolios.
  • Includes approximately $13.8 billion and $13.7 billion of Card Member receivables outside the U.S. as of December 31, 2013 and 2012, respectively.
  • Other receivables primarily represent amounts related to (i) purchased joint venture receivables, (ii) certain merchants for billed discount revenue, and (iii) GNS partner banks for items such as royalty and franchise fees. Other receivables are presented net of reserves for losses of $71 million and $86 million as of December 31, 2013 and 2012, respectively.

 
Card Member loans segment detail

Loans as of December 31, 2013 and 2012 consisted of:

(Millions)  2013  2012
U.S. Card Services(a) $58,395 $55,953
International Card Services  8,790  9,236
Global Commercial Services  53  40
Card Member loans  67,238  65,229
Less: Reserve for losses  1,261  1,471
Card Member loans, net  65,977  63,758
Other loans, net(b) $608 $551

  • Includes approximately $31.2 billion and $32.7 billion of gross Card Member loans available to settle obligations of consolidated VIEs as of December 31, 2013 and 2012, respectively.
  • Other loans primarily represent loans to merchants and a store card loan portfolio. Other loans are presented net of reserves for losses of $13 million and $20 million as of December 31, 2013 and 2012, respectively.

 
Aging of Card Member loans and receivables

The following table represents the aging of Card Member loans and receivables as of December 31, 2013 and 2012:

       30-59  60-89  90+   
       Days  Days  Days   
       Past  Past  Past   
2013 (Millions)  Current  Due  Due  Due  Total
Card Member               
 Loans:               
U.S. Card Services $57,772 $183 $134 $306 $58,395
International Card                
 Services  8,664  43  28  55  8,790
Card Member                
 Receivables:               
U.S. Card Services $21,488 $125 $69 $160 $21,842
International Card                
 Services(a)  (b)  (b)  (b)  83  7,771
Global Commercial                
 Services(a)  (b)  (b)  (b)  132  14,391
                 
       30-59  60-89  90+   
       Days  Days  Days   
       Past  Past  Past   
2012 (Millions)  Current  Due  Due  Due  Total
Card Member               
 Loans:               
U.S. Card Services $ 55,281 $200 $147 $325 $ 55,953
International Card                
 Services   9,099  47  30  60   9,236
Card Member                
 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

  • For Card Member receivables in ICS and GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member'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 Card Member receivable balance is considered as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes.
  • 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:

  2013 2012 
  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 
Card Member Loans:             
U.S. Card Services 1.8%2.0%1.1%2.1%2.3%1.2%
International Card Services  1.9%2.3%1.4%1.9%2.4%1.5%
Card Member Receivables:             
U.S. Card Services  1.7%1.9%1.6%1.9%2.1%1.8%
              
      2013 2012 
      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 
Card Member Receivables:             
International Card Services      0.20%1.1%0.16%0.9%
Global Commercial Services      0.08%0.9%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 Card Member loans and receivables

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

   As of December 31, 2013 For the Year Ended December 31, 2013 
   Loans over                 
   90 Days     Loans &  Total    Average   
   Past Due  Non-  Receivables  Impaired  Unpaid     Balance of Interest  
  & Accruing  Accrual  Modified  Loans &  Principal  Allowance  Impaired Income 
2013 (Millions)  Interest (a) Loans (b) as a TDR (c) Receivables  Balance (d) for TDRs (e) Loans Recognized 
Card Member Loans:                        
U.S. Card Services  $ 170 $ 244 $ 373 $ 787 $ 731 $ 84 $ 943$ 46 
International Card Services    54   4   5   63   62   ―   67  16 
Card Member Receivables:                        
U.S. Card Services    ―   ―   50   50   49   38   81  ― 
Total $ 224 $ 248 $ 428 $ 900 $ 842 $ 122 $ 1,091$ 62 
                         
   As of December 31, 2012 For the Year Ended December 31, 2012 
   Loans over                 
   90 Days     Loans &  Total    Average   
   Past Due  Non-  Receivables  Impaired  Unpaid     Balance of Interest  
  & Accruing  Accrual  Modified  Loans &  Principal  Allowance  Impaired Income 
2012 (Millions)  Interest (a) Loans (b) as a TDR (c) Receivables  Balance (d)for TDRs (e) Loans Recognized 
Card Member Loans:                        
U.S. Card Services  $ 73 $ 426 $ 627 $ 1,126 $ 1,073 $ 152 $ 1,221$ 47 
International Card Services    59   5   6   70   69   1   75  16 
Card Member Receivables:                        
U.S. Card Services    ―   ―   117   117   111   91   135  ― 
Total $ 132 $ 431 $ 750 $ 1,313 $ 1,253 $ 244 $ 1,431$ 63 
                         
   As of December 31, 2011 For the Year Ended December 31, 2011 
   Loans over                 
   90 Days     Loans &  Total    Average   
   Past Due  Non-  Receivables  Impaired  Unpaid     Balance of Interest  
  & Accruing  Accrual  Modified  Loans &  Principal  Allowance  Impaired Income 
2011 (Millions)  Interest (a) Loans (b) as a TDR (c) Receivables  Balance (d)for TDRs (e) Loans Recognized 
Card Member Loans:                        
U.S. Card Services  $ 64 $ 529 $ 736 $ 1,329 $ 1,268 $ 174 $ 1,498$ 52 
International Card Services    67   6   8   81   80   2   98  26 
Card Member Receivables:                        
U.S. Card Services    ―   ―   174   174   165   118   145  ― 
Total $ 131 $ 535 $ 918 $ 1,584 $ 1,513 $ 294 $ 1,741$ 78 

  • 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 primarily include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest.
  • Total loans and receivables modified as a TDR includes $92 million, $320 million and $410 million that are non-accrual and $26 million, $6 million and $4 million that are past due 90 days and still accruing interest as of December 31, 2013, 2012 and 2011, respectively.
  • Unpaid principal balance consists of Card Member 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 individually for impairment. The Company records a reserve for losses for all impaired loans. Refer to Card Member Loans Evaluated Individually 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.
Troubled debt restructurings

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

2013   Aggregated
(Accounts in thousands,  Number of Outstanding
Dollars in millions) Accounts  Balances(a,b)
Troubled Debt Restructurings:     
U.S. Card Services ―      
 Card Member Loans  60 $ 448
U.S. Card Services ―      
 Card Member Receivables  20   247
Total  80 $ 695
       
2012   Aggregated
(Accounts in thousands,  Number of Outstanding
Dollars in millions) Accounts  Balances(a,b)
Troubled Debt Restructurings:     
U.S. Card Services ―      
 Card Member Loans  106 $ 779
U.S. Card Services ―      
 Card Member Receivables  37   425
Total  143 $ 1,204
       
2011   Aggregated
(Accounts in thousands,  Number of Outstanding
Dollars in millions) Accounts  Balances(a,b)
Troubled Debt Restructurings:     
U.S. Card Services ―      
 Card Member Loans  147 $ 1,110
U.S. Card Services ―      
 Card Member Receivables  50   402
Total  197 $ 1,512

  • Represents the outstanding balance immediately prior to modification. In certain modifications the principal balance was reduced in the aggregate amount of $4 million, $24 million and $59 million for the years ended December 31, 2013, 2012 and 2011, respectively.
  • Includes principal and accrued interest.

 
Troubled debt restructurings that subsequently defaulted

The following table provides information for the years ended December 31, 2013, 2012, and 2011, with respect to the Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A Card Member will default from a modification program after one and up to two consecutive missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. The defaulted ICS Card Member loan and receivable modifications were not significant.

      Aggregated
2013    Outstanding
(Accounts in thousands,   Number of  Balances
Dollars in millions)  Accounts Upon Default(a)
Troubled Debt Restructurings       
That Subsequently Defaulted:      
U.S. Card Services ―       
 Card Member Loans   18 $ 159
U.S. Card Services ―       
 Card Member Receivables   3   38
Total   21 $ 197
        
      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 ―       
 Card Member Loans   23 $ 182
U.S. Card Services ―       
 Card Member 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 ―       
 Card Member Loans   46 $ 343
U.S. Card Services ―       
 Card Member Receivables   6   45
Total   52 $ 388

  • The outstanding balance includes principal, fees, and accrued interest on Card Member Loans and principal and fees on Card Member Receivables.