Accounts Receivable and Loans

3 Months Ended

Mar. 31, 2016

Loans Notes Trade And Other Receivables Disclosure [Abstract]

Accounts Receivable and Loans

3.Accounts Receivable and Loans

The Company’s charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively. This Note is presented excluding amounts associated with the Card Member loans and receivables HFS as of March 31, 2016 and December 31, 2015.

Card Member accounts receivable by segment and Other receivables as of March 31, 2016 and December 31, 2015 consisted of:

(Millions)	2016		2015
U.S. Consumer Services (a)	$	10,332	$	11,807
International Consumer and Network Services		5,563		5,599
Global Commercial Services		28,578		26,727
Card Member receivables (b)		44,473		44,133
Less: Reserve for losses		446		462
Card Member receivables, net	$	44,027	$	43,671
Other receivables, net (c)	$	2,633	$	3,024

• Includes $5.8 billion and $6.6billion of gross Card Member receivables available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2016 and December 31, 2015, respectively.
• Includes approximately $12.4 billion and $11.9 billionof Card Member receivables outside the United States as of March 31, 2016 and December 31, 2015, respectively.
• Other receivables primarily represent amounts related to (i) certain merchants for billed discount revenue, (ii) GNS partner banks for items such as royalty and franchise fees and (iii) loyalty coalition partners for points issued, as well as program participation and servicing fees. Other receivables are presented net of reserves for losses of $44 million and $43 million as of March 31, 2016 and December 31, 2015, respectively.

Card Member loans by segment and Other loans as of March 31, 2016 and December 31, 2015 consisted of:

(Millions)		2016		2015
U.S. Consumer Services(a)	$	42,432	$	43,495
International Consumer and Network Services		6,646		7,072
Global Commercial Services		8,328		8,006
Card Member loans		57,406		58,573
Less: Reserve for losses		1,012		1,028
Card Member loans, net	$	56,394	$	57,545
Other loans, net(b)	$	1,186	$	1,254

• Includes approximately $22.2 billion and $23.6billion of gross Card Member loans availableto settle obligations of a consolidated VIE as of March 31, 2016 and December 31, 2015, respectively.
• Other loans primarily represent loans to merchants. Other loans arepresented net of reserves for losses of $35 millionand $20 million as ofMarch 31, 2016 and December 31, 2015, respectively.

Card Member Loans and Card Member Receivables Aging

Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of March 31, 2016 and December 31, 2015:

				30-59		60-89		90+
				Days		Days		Days
				Past		Past		Past
2016 (Millions)		Current		Due		Due		Due		Total
Card Member Loans:
U.S. Consumer Services	$	42,006	$	122	$	93	$	211	$	42,432
International Consumer and Network Services		6,529		37		26		54		6,646
Global Commercial Services
Global Small Business Services		8,183		27		19		39		8,268
Global Corporate Payments(a)		(b)		(b)		(b)		1		60
Card Member Receivables:
U.S. Consumer Services	$	10,187	$	48	$	33	$	64	$	10,332
International Consumer and Network Services		5,478		27		16		42		5,563
Global Commercial Services
Global Small Business Services		12,997		68		49		94		13,208
Global Corporate Payments(a)		(b)		(b)		(b)		115		15,370
				30-59		60-89		90+
				Days		Days		Days
				Past		Past		Past
2015 (Millions)		Current		Due		Due		Due		Total
Card Member Loans:
U.S. Consumer Services	$	43,063	$	128	$	94	$	210	$	43,495
International Consumer and Network Services		6,961		34		25		52		7,072
Global Commercial Services
Global Small Business Services		7,867		26		18		40		7,951
Global Corporate Payments(a)		(b)		(b)		(b)		1		55
Card Member Receivables:
U.S. Consumer Services	$	11,646	$	54	$	32	$	75	$	11,807
International Consumer and Network Services		5,515		24		18		42		5,599
Global Commercial Services
Global Small Business Services		12,734		69		45		102		12,950
Global Corporate Payments(a)		(b)		(b)		(b)		124		13,777

• For GCP Card Member receivables in 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 classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes.
• Delinquency data for periods other than 90 days past billing is not available due to system constraints. Therefore, such data has not been utilized 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 Card Member Loans and Receivables

The following tables present the key credit quality indicators as of or for the three months endedMarch 31:

	2016						2015
	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. Consumer Services	1.5	%	1.7	%	1.0	%	1.5	%	1.7	%	0.9	%
International Consumer and
Network Services	1.9	%	2.4	%	1.8	%	2.0	%	2.5	%	1.8	%
Global Small Business Services	1.4	%	1.6	%	1.0	%	1.3	%	1.6	%	1.0	%
Card Member Receivables:
U.S. Consumer Services	1.8	%	2.0	%	1.4	%	2.1	%	2.3	%	1.5	%
International Consumer and
Network Services	2.2	%	2.4	%	1.5	%	1.9	%	2.1	%	1.6	%
Global Small Business Services	1.8	%	2.1	%	1.6	%	2.2	%	2.4	%	1.8	%
					2016				2015
					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:
Global Corporate Payments					0.08	%	0.7	%	0.10	%	0.7	%

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 considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

Impaired Card Member Loans and Receivables

Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the Card Member agreement.In certain cases, these Card Member loans and receivables are included in one of the Company’s various Troubled Debt Restructuring (TDR)modification programs.

The following tables provide additional information with respect to the Company’s impaired Card Member loans and receivables. Impaired Card Member receivables are not significant for ICNS as ofMarch 31,2016 and December 31,2015; therefore,the segment’s receivables are not included in the following tables.

		As of March 31, 2016
	Over 90 days						Accounts Classified
	Past Due &						as a TDR(c)				Total		Unpaid
	Accruing			Non-					Out of		Impaired		Principal		Allowance
2016 (Millions)	Interest		(a)	Accruals		(b)	In Program(d)		Program(e)		Balance		Balance		for TDRs
Card Member Loans:
U.S. Consumer Services	$	139		$	123		$	147	$	99	$	508	$	469	$	44
International Consumer and
Network Services		54			―			―		―		54		53		―
Global Commercial Services		24			26			23		19		92		85		8
Card Member Receivables:
U.S. Consumer Services		―			―			9		4		13		13		6
Global Commercial Services		―			―			20		5		25		24		14
Total	$	217		$	149		$	199	$	127	$	692	$	644	$	72
		As of December 31, 2015
	Over 90 days						Accounts Classified
	Past Due &						as a TDR(c)				Total		Unpaid
	Accruing			Non-					Out of		Impaired		Principal		Allowance
2015 (Millions)	Interest		(a)	Accruals		(b)	In Program(d)		Program(e)		Balance		Balance		for TDRs
Card Member Loans:
U.S. Consumer Services	$	140		$	124		$	149	$	89	$	502	$	463	$	44
International Consumer and
Network Services		52			―			―		―		52		51		―
Global Commercial Services		24			26			23		18		91		85		9
Card Member Receivables:
U.S. Consumer Services		―			―			11		3		14		14		8
Global Commercial Services		―			―			16		3		19		19		12
Total	$	216		$	150		$	199	$	113	$	678	$	632	$	73

• The Company’s policy is generally to accrue interest through the date of write-off (typically 180 days past due). The Company establishes reserves for interest that it believes will not be collected. Amounts presented exclude loans classified 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.
• Accounts classified asa TDR include $18 million and $20 million that are over 90 days past due and accruing interest and $15 million and $18 million as ofMarch 31, 2016 and December 31, 2015, respectively.
• In Program TDRs include Card Member accounts that are currently enrolled in a modification program.
• Out of Program TDRs include $98 million and $84 million of Card Member accounts that have successfully completed a modification program and $29 million and $29 million of Card Member accounts that were not in compliance with the terms of the modification programs as of March 31, 2016 and December 31, 2015, respectively.

The following table provides information with respect to the Company’s average balances of, and interest income recognized from, impaired Card Member loans and the average balances of impaired Card Member receivables for the three months ended March 31:

		2016			2015
			Interest				Interest
	Average		Income		Average		Income
(Millions)		Balance	Recognized			Balance	Recognized
Card Member Loans:
U.S. Consumer Services	$	505	$	12	$	587	$	10
International Consumer and Network Services		53		4		56		4
Global Commercial Services		92		3		105		3
Card Member Receivables:
U.S. Consumer Services		14		―		14		―
Global Commercial Services		22		―		24		―
Total	$	686	$	19	$	786	$	17

Card Member Loans and Receivables Modified as TDRs

The following table provides additional information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs for the three months endedMarch 31, 2016 and 2015. The ICNS Card Member loans and receivables modifications were not significant; therefore, this segment is not included in the following TDR disclosures.

		Three Months Ended March 31, 2016
		Number of		Outstanding			Average Interest		Average Payment
		Accounts		Balances		(a)	Rate Reduction		Term Extensions
		(in thousands)		($ in millions)			(% points)		(# of months)
Troubled Debt Restructurings:
	Card Member Loans		8	$	57			13		(b)
	Card Member Receivables		3		38			(c)		16
Total			11	$	95
		Three Months Ended March 31, 2015
		Number of		Outstanding			Average Interest		Average Payment
		Accounts		Balances		(a)	Rate Reduction		Term Extensions
		(in thousands)		($ in millions)			(% points)		(# of months)
Troubled Debt Restructurings:
	Card Member Loans		11	$	80			12		(b)
	Card Member Receivables		3		40			(c)		12
Total			14	$	120

• Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. Modifications did not reduce the principal balance.
• For Card Member loans, there have been no payment term extensions.
• The Company does not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.

The following table provides information for the three months ended March 31, 2016 and 2015, with respect to the USCS and GCSCard Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification.ACard Memberis considered in default of 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.

		2016			2015
			Outstanding			Outstanding
		Number of	Balances		Number of	Balances
		Accounts		Upon Default	Accounts		Upon Default
(Accounts in thousands, Dollars in millions)		(thousands)	(millions)(a)		(thousands)	(millions)(a)
Troubled Debt Restructurings That
	Subsequently Defaulted:
	Card Member Loans	1	$	9	2	$	10
	Card Member Receivables	1		1	1		1
Total		2	$	10	3	$	11

The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables.