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Reserves For Losses (Tables)
 3 Months Ended
Mar. 31, 2013
Reserves For Losses Tables [Abstract]  
Changes in the cardmember receivable reserve for losses

The following table presents changes in the cardmember receivables reserve for losses for the three months ended March 31:

(Millions) 2013 2012
Balance, January 1 $428 $438
Additions:      
 Provisions(a)  154  149
 Other(b)  41  29
  Total provision  195  178
Deductions:      
 Net write-offs(c)  (178)  (182)
 Other(d)  (35)  (10)
Balance, March 31 $410 $424

  • Provisions for principal (resulting from authorized transactions) and fee reserve components.
  • Provisions for unauthorized transactions.
  • Consists of principal (resulting from authorized transactions) and fee components, less recoveries of $99 million and $93 million for the three months ended March 31, 2013 and 2012, respectively.
  • Includes net write-offs resulting from unauthorized transactions of $(40) million and $(33) million for the three months ended March 31, 2013 and 2012, respectively; foreign currency translation adjustments of $(2) million and $3 million for the three months ended March 31, 2013 and 2012, respectively; reclassified cardmember bankruptcy reserves of $18 million for the three months ended March 31, 2012 only (cardmember bankruptcy reserves were classified as other liabilities in periods prior to March 31, 2012); and other items of $7 million and $2 million for the three months ended March 31, 2013 and 2012, respectively.
Cardmember receivables and related reserves evaluated separately and collectively for impairment

The following table presents cardmember receivables evaluated individually and collectively for impairment and related reserves as of March 31, 2013 and December 31, 2012:

(Millions) 2013 2012
Cardmember receivables evaluated individually for impairment(a) $113 $117
Related reserves(a) $88 $91
Cardmember receivables evaluated collectively for impairment $43,258 $42,649
Related reserves  $322 $337

  • Represents receivables modified in a TDR and related reserves. Refer to the Impaired Cardmember Loans and Receivables discussion in Note 3 for further information.
Changes in the cardmember loans reserve for losses

The following table presents changes in the cardmember loans reserve for losses for the three months ended March 31:

(Millions) 2013 2012
Balance, January 1 $1,471 $1,874
Additions:      
 Provisions(a)  243  185
 Other(b)  32  27
  Total provision  275  212
Deductions:      
 Net write-offs      
  Principal(c)  (304)  (349)
  Interest and fees(c)  (38)  (44)
 Other(d)  (37)  (13)
Balance, March 31 $1,367 $1,680

  • Provisions for principal (resulting from authorized transactions), interest and fee reserves components.
  • Provisions for unauthorized transactions.
  • Consists of principal write-offs (resulting from authorized transactions), less recoveries of $114 million and $133 million for the three months ended March 31, 2013 and 2012, respectively. Recoveries of interest and fees were de minimis.
  • Includes net write-offs resulting from unauthorized transactions of $(32) million and $(28) million for the three months ended March 31, 2013 and 2012, respectively; foreign currency translation adjustments of $(1) million and $10 million for the three months ended March 31, 2013 and 2012, respectively; reclassified cardmember bankruptcy reserves of $4 million for the three months ended March 31, 2012 only (cardmember bankruptcy reserves were classified as other liabilities in periods prior to March 31, 2012); and other items of $(4) million and $1 million for the three months ended March 31, 2013 and 2012, respectively.
Cardmember loans and related reserves evaluated separately and collectively for impairment

The following table presents cardmember loans evaluated individually and collectively for impairment and related reserves as of March 31, 2013 and December 31, 2012:

(Millions) 2013 2012
Cardmember loans evaluated individually for impairment(a) $578 $633
Related reserves (a) $144 $153
Cardmember loans evaluated collectively for impairment(b) $61,708 $64,596
Related reserves (b) $1,223 $1,318

  • Represents loans modified in a TDR and related reserves. Refer to the Impaired Cardmember Loans and Receivables discussion in Note 3 for further information.
  • Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of loans and reserves for external environmental qualitative factors that apply to loans in geographic markets that are collectively evaluated for impairment and are not specific to any individual pool of loans.