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Accounts Receivable and Loans | 3 Months Ended
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Mar. 31, 2014
Loans Notes Trade And Other Receivables Disclosure [Abstract] |
Accounts Receivable and Loans | 3. Accounts Receivable and Loans T he Company's charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively. For information on the Company's accounts receivable and loans and the related accounting policies, refer to Note 4 on pages 7 2 – 76 of the Annual Report. Accounts receivable as of March 31, 2014 and December 31, 2013 consisted of:
(Millions) |  | 2014 |  | 2013
U.S. Card Services(a) |  | $ | 20,726 |  | $ | 21,842
International Card Services |  |  | 7,153 |  |  | 7,771
Global Commercial Services(b) |  |  | 16,638 |  |  | 14,391
Global Network & Merchant Services(c) |  |  | 137 |  |  | 159
Card Member receivables(d) |  |  | 44,654 |  |  | 44,163
Less: Reserve for losses |  |  | 414 |  |  | 386
Card Member receivables, net |  |  | 44,240 |  |  | 43,777
Other receivables, net(e) |  | $ | 3,134 |  | $ | 3,408
Includes $6.4 b illion and $7.3 billion of gross Card Member receivables available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2014 and December 31, 2013, respectively. Includes $885 m illion and $836 m illion due from airlines, of which Delta Air Lines (Delta) comprises $653 m illion and $628 m illion as of March 31, 2014 and December 31, 2013, respectively. Includes receivables primarily related to the Company's International Currency Card portfolios. Includes approximately $13.9 billion and $13.8 billion of Card Member receivables outside the U.S. as of March 31, 2014 and December 31, 2013, respectively. Other receivables primarily represent amounts related to (i) purchased joint venture receivables, (ii) Global Network Services (GNS) partner banks for items such as royalty and franchise fees, and (iii) certain merch ants for billed discount revenu e. Other receivables are presented net of reserves for losses of $66 million and $71 million as of March 31, 2014 and December 31, 2013, respectively. Loans as of March 31, 2014 and December 31, 2013 consisted of:
(Millions) |  |  | 2014 |  |  | 2013
U.S. Card Services(a) |  | $ | 55,801 |  | $ | 58,395
International Card Services |  |  | 8,154 |  |  | 8,790
Global Commercial Services |  |  | 61 |  |  | 53
Card Member loans |  |  | 64,016 |  |  | 67,238
Less: Reserve for losses |  |  | 1,191 |  |  | 1,261
Card Member loans, net |  |  | 62,825 |  |  | 65,977
Other loans, net(b) |  | $ | 651 |  | $ | 608
I ncludes approximately $28.7 billion and $31.2 billion of gross Card Member loans available to settle obligations o f a consolidated VIE as of March 31, 2014 and December 31, 2013, respectively. Other loans primarily represent loans to merchants and a store card loan portfolio. Other loans are presented net of reserves for losses of $9 million and $13 million as of March 31, 2014 and December 31, 2013, respectively. Card Member Loans and Card Member Receivables A ging Generally, a Card Member account is considered past due if payment is not received within 30 days af ter the billing statement date. T he following table represents the aging of Card Member loans and receivables as of March 31, 2014 and December 31, 2013:
|  |  |  |  |  | 30-59 |  |  | 60-89 |  |  | 90+ |  |  |
|  |  |  |  |  | Days |  |  | Days |  |  | Days |  |  |
|  |  |  |  |  | Past |  |  | Past |  |  | Past |  |  |
2014 (Millions) |  |  | Current |  |  | Due |  |  | Due |  |  | Due |  |  | Total
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 55,193 |  | $ | 175 |  | $ | 134 |  | $ | 299 |  | $ | 55,801
International Card Services |  |  | 8,013 |  |  | 48 |  |  | 30 |  |  | 63 |  |  | 8,154
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 20,355 |  | $ | 119 |  | $ | 84 |  | $ | 168 |  | $ | 20,726
International Card Services(a) |  |  | 7,050 |  |  | 34 |  |  | 21 |  |  | 48 |  |  | 7,153
Global Commercial Services |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 122 |  |  | 16,638
|  |  |  |  |  | 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 |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 83 |  |  | 7,771
Global Commercial Services |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 132 |  |  | 14,391
Effective March 31, 2014, as a result of system enhancements, delinquency data is now available and presented on a prospective basis for the indicated aging categories. Comparable data for prior periods is not available. F or risk management purposes, the Company has historically utilized 90 days past billing for the International Card Services (ICS) segment, as described below in (b). Data for periods prior to 90 days past billing are not available due to system constraints. Therefore, such data have 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. For Card Member receivables in Global Commercial Services (GCS) as of March 31, 2014 and ICS and GCS as of December 31, 2013, 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. Credit Quality Indicators for Card Member Loans and R eceivables The following table s prese nt the key credit quality indicators as of or for the three months ended March 31:
|  | 2014 |  | 2013 |
|  | 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 |  | 1.7 | % | 1.9 | % | 1.1 | % | 2.0 | % | 2.2 | % | 1.2 | %
International Card Services(b) |  | 2.2 | % | 2.7 | % | 1.7 | % | 1.8 | % | 2.3 | % | 1.7 | %
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | 1.8 | % | 2.0 | % | 1.8 | % | 2.0 | % | 2.2 | % | 1.9 | %
International Card Services(b) |  | 1.9 | % | 2.0 | % | 1.4 | % | (c) |  | (c) |  | (c) |
|  |  |  |  |  | 2014 |  | 2013 |
|  |  |  |  |  | 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 | (c) |  | (c) |  | 0.18 | % | 1.1 | %
Global Commercial Services | 0.09 | % | 0.7 | % | 0.08 | % | 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, b ecause 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 includi ng principal, interest and/or fees is also presented. For the period ending March 31, 2014, write-offs for certain installment loan products have been reclassified from C ard M ember r eceivable s to C ard M ember loans. Historically, net loss ratio as a % of charge volume and 90 days past billings as a % of receivables were presented. Effective March 31, 2014, as a result of system enhancements, 30 days past due as a % of total, Net write-off rate (principal only) and Net write-off rate (principal and fees) have been presented. Refer to Note 5 on pages 77 – 78 of the Annual Report for additional indicators, including external environmental qualitative factors, management considers in its monthly evaluation process for reserves for losses. Impaired Card Member Loans and R eceivables Impaired loans and receivables are defined by GAAP as 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. For information on impaired Ca rd Member loans and receivables and the related accounting policies, refer to Note 4 on pages 7 4 – 76 of the Annual Report. The following table provide s 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 March 31, 2014 and December 31, 2013 or for the three months ended March 31, 2014 and 2013:
|  | As of March 31, 2014 |  |  | For the Three Months Ended March 31, 2014
|  |  | Loans over |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 90 Days |  |  |  |  |  | Loans & |  |  | Total |  |  |  |  | Average |  |  |
|  |  | Past Due |  |  | Non- |  |  | Receivables |  |  | Impaired |  |  | Unpaid |  |  |  |  | Balance of |  |  | Interest
|  | & Accruing |  |  | Accrual |  |  | Modified |  |  | Loans & |  | Principal |  |  | Allowance |  |  | Impaired |  |  | Income
2014 (Millions) |  |  | Interest | (a) |  | Loans | (b) |  | as a TDR | (c) |  | Receivables |  |  | Balance | (d) |  | for TDRs | (e) |  | Loans |  |  | Recognized
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 181 |  | $ | 220 |  | $ | 337 |  | $ | 738 |  | $ | 687 |  | $ | 80 |  | $ | 793 |  | $ | 16
International Card Services |  |  | 62 |  |  | 2 |  |  | ― |  |  | 64 |  |  | 64 |  |  | ― |  |  | 63 |  |  | 4
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | ― |  |  | ― |  |  | 49 |  |  | 49 |  |  | 48 |  |  | 36 |  |  | 50 |  |  | ―
Total |  | $ | 243 |  | $ | 222 |  | $ | 386 |  | $ | 851 |  | $ | 799 |  | $ | 116 |  | $ | 906 |  | $ | 20
|  | As of December 31, 2013 |  |  | For the Three Months Ended March 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 |  | $ | 1,105 |  | $ | 12
International Card Services |  |  | 54 |  |  | 4 |  |  | 5 |  |  | 63 |  |  | 62 |  |  | ― |  |  | 70 |  |  | 4
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | ― |  |  | ― |  |  | 50 |  |  | 50 |  |  | 49 |  |  | 38 |  |  | 115 |  |  | ―
Total |  | $ | 224 |  | $ | 248 |  | $ | 428 |  | $ | 900 |  | $ | 842 |  | $ | 122 |  | $ | 1,290 |  | $ | 16
The Company's policy is generally to accrue inte rest through the date of write-off (i.e., at 180 days past due). The Company establishes reserves for interest that the Company believes will not be collected. Amounts presented e xclude loans modified as a troubled debt restructuring (TDR). Non-accrual loans not in modification programs include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest. Total loans and receivable s modified as a TDR include s $91 million and $92 mil lion that are non-accrual and $27 million and $26 million that are past due 90 days and still accruing interest as of March 31, 2014 and December 31, 2013, respectively. Unpaid principal balance consists of Card Member charges billed and excludes other amounts charged directly by the Company such as interest and fees. Represents the reserve for losses for TDRs, which are evaluated individually fo r impairment. The Company record s a reserve for losses for all impaired loans. Refer to Card Member Loans Evaluated Individually and Collectively for Impairment in Note 4 for further information regarding the reserve for losses on loans over 90 days past due and accruing interest and non-accrual loans, which are evaluated collectively for impairment. Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to the U.S. Card Services (USCS) Card Member loans and receivables modified as TDRs during the three months ended March 31. The ICS and GCS Card Member loans and receivables modifications were not significan t. For information on TDRs and the related accounting policies, refer to Note 4 on pages 74 – 76 of the Annual Report.
|  | Three Months Ended
|  | March 31, 2014
|  |  |  |  |  |  |  |  | Average
|  |  |  |  |  |  | Average |  | Payment
|  | Number of |  | Outstanding |  | Interest Rate |  | Term
|  | Accounts |  | Balances(a)(b) |  | Reduction |  | Extension
|  | (in thousands) |  |  | ($ in millions) |  | (% Points) |  | (# of Months)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |
Card Member Loans |  | 12 |  | $ | 96 |  | 14 |  | (c)
Card Member Receivables |  | 4 |  |  | 47 |  | (c) |  | 12
Total |  | 16 |  | $ | 143 |  |  |  |
|  | Three Months Ended
|  | March 31, 2013
|  |  |  |  |  |  |  |  | Average
|  |  |  |  |  |  | Average |  | Payment
|  | Number of |  | Outstanding |  | Interest Rate |  | Term
|  | Accounts |  | Balances(a)(b) |  | Reduction |  | Extension
|  | (in thousands) |  |  | ($ in millions) |  | (% Points) |  | (# of Months)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |
Card Member Loans |  | 23 |  | $ | 172 |  | 13 |  | (c)
Card Member Receivables |  | 8 |  |  | 104 |  | (c) |  | 12
Total |  | 31 |  | $ | 276 |  |  |  |
Represents the outstanding balance immediately prior to modification. For the three months ended March 31, 2014 and 2013 modifications reduced the aggregate principal balance by nil and $4 million, respectively. The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. 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, 2014 and 2013, with respect to the USCS Card Member loans and receivables modif ied as TDRs that subsequently defaulted w ithin 12 months of modification. A Card Member is considered to have been in default from a modific ation 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.
|  | 2014 |  | 2013
|  |  |  |  |  | Aggregated |  |  |  |  |  | Aggregated
|  |  |  |  | Outstanding |  |  |  |  | Outstanding
|  |  | Number of |  |  | Balances |  |  | Number of |  |  | Balances
(Accounts in thousands, Dollars in millions) |  |  | Accounts |  | Upon Default(a) |  |  | Accounts |  | Upon Default(a)
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  |  | 2 |  | $ | 20 |  |  | 5 |  | $ | 48
Card Member Receivables |  |  | 1 |  |  | 7 |  |  | 1 |  |  | 12
Total |  |  | 3 |  | $ | 27 |  |  | 6 |  | $ | 60
The outstanding balance include s principal, fees and accrued interest on Card Member l oans and principal and fees on Card Member r eceivables.

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953791-111525 + Details
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