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Accounts Receivable and Loans | 9 Months Ended
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Sep. 30, 2015
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. Accounts receivable by segment as of September 30, 2015 and December 31, 2014, consisted of:
(Millions) |  | 2015 |  | 2014
U.S. Card Services(a) |  | $ | 21,965 |  | $ | 22,468
International Card Services |  |  | 6,511 |  |  | 7,653
Global Commercial Services(b) |  |  | 15,748 |  |  | 14,583
Global Network & Merchant Services(c) |  |  | 107 |  |  | 147
Card Member receivables(d) |  |  | 44,331 |  |  | 44,851
Less: Reserve for losses |  |  | 441 |  |  | 465
Card Member receivables, net |  | $ | 43,890 |  | $ | 44,386
Other receivables, net(e) |  | $ | 2,517 |  | $ | 2,614
Includes $6.0 b illion and $7.0 billion of gross Card Member receivables available to settle obligations of a consolidated variable interest entity (VIE) as of September 30, 2015 and December 31, 2014, respectively. Includes $327 m illion and $636 million due from airlines, of which Delta Air Lines comprises $265 million and $606 million as of September 30, 2015 and December 31, 2014, respectively. Includes receivables primarily related to the Company’s International Currency Card portfolios. Includes approximately $12.3 billion and $13.3 billion of Card Member receivables outside the U.S. as of September 30, 2015 and December 31, 2014, respectively. Other receivables primarily represent amounts related to (i) certain merchants for billed discount revenue and (ii) Global Network Services (GNS) partner banks for items such as royalty and franchise fees. Other receivables are presented net of reserves for losses of $61 million as of both September 30, 2015 and December 31, 2014. Loans by segment as of September 30, 2015 and December 31, 2014, consisted of:
(Millions) |  |  | 2015 |  |  | 2014
U.S. Card Services(a) |  | $ | 62,133 |  | $ | 62,592
International Card Services |  |  | 6,710 |  |  | 7,744
Global Commercial Services |  |  | 52 |  |  | 49
Card Member loans |  |  | 68,895 |  |  | 70,385
Less: Reserve for losses |  |  | 1,164 |  |  | 1,201
Card Member loans, net |  | $ | 67,731 |  | $ | 69,184
Other loans, net(b) |  | $ | 1,054 |  | $ | 920
Includes approximately $27.3 billion and $30.1 billion of gross Card Member loans available to settle obligations o f a consolidated VIE as of September 30, 2015 and December 31, 2014, respectively. Other loans primarily represent loans to merchants. Other loans are presented net of reserves for losses of $18 million and $12 million as of September 30, 2015 and December 31, 2014, 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 September 30, 2015 and D ecember 31, 2014:
|  |  |  |  |  | 30-59 |  |  | 60-89 |  |  | 90+ |  |  |
|  |  |  |  |  | Days |  |  | Days |  |  | Days |  |  |
|  |  |  |  |  | Past |  |  | Past |  |  | Past |  |  |
2015 (Millions) |  |  | Current |  |  | Due |  |  | Due |  |  | Due |  |  | Total
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 61,530 |  | $ | 191 |  | $ | 131 |  | $ | 281 |  | $ | 62,133
International Card Services |  |  | 6,604 |  |  | 35 |  |  | 22 |  |  | 49 |  |  | 6,710
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 21,612 |  | $ | 133 |  | $ | 73 |  | $ | 147 |  | $ | 21,965
International Card Services |  |  | 6,412 |  |  | 29 |  |  | 22 |  |  | 48 |  |  | 6,511
Global Commercial Services(a) |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 112 |  |  | 15,748
|  |  |  |  |  | 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 |  | $ | 61,995 |  | $ | 179 |  | $ | 128 |  | $ | 290 |  | $ | 62,592
International Card Services |  |  | 7,621 |  |  | 39 |  |  | 27 |  |  | 57 |  |  | 7,744
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 22,096 |  | $ | 129 |  | $ | 72 |  | $ | 171 |  | $ | 22,468
International Card Services |  |  | 7,557 |  |  | 29 |  |  | 20 |  |  | 47 |  |  | 7,653
Global Commercial Services(a) |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 120 |  |  | 14,583
For 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 sho wn 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 ar e 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 qual ity indicators as of or for the nine months ended September 30:
|  | 2015 |  | 2014 |
|  | 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 |  | 1.4 | % | 1.6 | % | 1.0 | % | 1.6 | % | 1.8 | % | 1.0 | %
International Card Services |  | 2.0 | % | 2.4 | % | 1.6 | % | 2.0 | % | 2.4 | % | 1.6 | %
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | 1.8 | % | 2.0 | % | 1.6 | % | 1.7 | % | 1.9 | % | 1.6 | %
International Card Services |  | 2.1 | % | 2.2 | % | 1.5 | % | 2.0 | % | 2.1 | % | 1.4 | %
|  |  |  |  |  | 2015 |  | 2014 |
|  |  |  |  |  | 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 Commercial Services | 0.09 | % | 0.7 | % | 0.09 | % | 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 considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or f ees is also presented. The nine months ended September 30, 2015, reflects the impact of a change in the timing of charge-offs for Card Member loans and receivables in ce rtain modification programs from 180 days past due to 120 days past due, which was fully recognized during the three months ended March 31, 2015. Impaired Card Member Loans and R eceivables Impaired loans and receivables are individual larger balance or homoge neous 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 modification programs. Beginning January 1, 2015, on a pro spective basis the Company continue s to classify Card Member accounts that have exited a modification program as a Troubled Debt Restructurin g (TDR), with such accounts identified as “Out of Program TDRs.” The following table provides additional information with respect to the Company’s impaired Card Member loans (which are not significant for GCS) and impaired Card Member receivables (which are not significant for International Card Services (ICS) and GCS) as of September 30, 2015 and December 31, 2014:
|  | As of September 30, 2015
|  | Over 90 days |  |  |  |  | Accounts Classified as a TDR (c) |  |  |  |  |  |  |  |  |  |
|  | Past Due & |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | Unpaid |  |  |
|  | Accruing |  | Non- |  |  |  |  | Out of |  |  | Impaired |  | Principal |  | Allowance
(Millions) |  | Interest | (a) | Accruals | (b) | In Program | (d) |  | Program | (e) |  | Balance |  | Balance |  | for TDRs
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 192 |  | $ | 175 |  | $ | 224 |  |  | $ | 109 |  |  | $ | 700 |  | $ | 649 |  | $ | 66
International Card Services |  |  | 49 |  |  | ― |  |  | ― |  |  |  | ― |  |  |  | 49 |  |  | 49 |  |  | ―
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | ― |  |  | ― |  |  | 26 |  |  |  | 4 |  |  |  | 30 |  |  | 30 |  |  | 18
Total |  | $ | 241 |  | $ | 175 |  | $ | 250 |  |  | $ | 113 |  |  | $ | 779 |  | $ | 728 |  | $ | 84
|  | As of December 31, 2014 |  |  |
|  | Over 90 days |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Past Due & |  |  |  |  |  |  |  | Total |  |  | Unpaid |  |  |  |  |
|  | Accruing |  | Non- |  | In Program |  |  | Impaired |  |  | Principal |  | Allowance |  |  |
(Millions) |  | Interest | (a) | Accruals | (b) | TDRs | (c)(d) |  | Balance |  |  | Balance |  | for TDRs |  |  |
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 161 |  | $ | 241 |  | $ | 286 |  |  | $ | 688 |  |  | $ | 646 |  | $ | 67 |  |  |
International Card Services |  |  | 57 |  |  | ― |  |  | ― |  |  |  | 57 |  |  |  | 56 |  |  | ― |  |  |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | ― |  |  | ― |  |  | 48 |  |  |  | 48 |  |  |  | 48 |  |  | 35 |  |  |
Total |  | $ | 218 |  | $ | 241 |  | $ | 334 |  |  | $ | 793 |  |  | $ | 750 |  | $ | 102 |  |  |
The Company’s policy is generally to accrue interest through the date of write-off (generally 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 include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest. Accou nts classified as a TDR include $19 million and $26 million that are over 90 days past due and accruing interest and $25 million and $34 millio n that are non-accrual as of September 30, 2015 and December 31, 2014, respectively. In Program TDRs include Card Member accounts that are currentl y enroll ed in a modification program. Out of Pro gram TDRs include $82 million of Card Member accounts that have successfully complete d a modification program and $31 million of Card Member accounts that were not in compliance with the terms of the modification programs. The following table provides information with respect to the Company’s average balances of, and interest income recognized from, impaired Card Member loans (which are not significant for GCS) and the average balance s of impaired Card Member r eceivables (which are not significant for ICS and GCS) for the three and nine months ended September 30:
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2015 |  | September 30, 2015
|  | Average |  | Interest Income |  | Average |  | Interest Income
2015 (Millions) |  | Balance |  | Recognized |  | Balance |  | Recognized
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 693 |  | $ | 16 |  | $ | 685 |  | $ | 43
International Card Services |  |  | 53 |  |  | 3 |  |  | 55 |  |  | 10
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | 28 |  |  | ― |  |  | 35 |  |  | ―
Total |  | $ | 774 |  | $ | 19 |  | $ | 775 |  | $ | 53
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2014 |  | September 30, 2014
|  | Average |  | Interest Income |  | Average |  | Interest Income
2014 (Millions) |  | Balance |  | Recognized |  | Balance |  | Recognized
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  | $ | 675 |  | $ | 12 |  | $ | 734 |  | $ | 37
International Card Services |  |  | 63 |  |  | 4 |  |  | 63 |  |  | 12
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Card Services |  |  | 44 |  |  | ― |  |  | 47 |  |  | ―
Total |  | $ | 782 |  | $ | 16 |  | $ | 844 |  | $ | 49
Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to the USCS Card Member loans and receivables modified as TDRs for the three and nine months ended September 30, 2015 and 2014. The ICS Card Member loans and receivables modifications were not significant and the Company does not offer modification programs for its GCS Card Member receivables; therefore, these segments are not included in the following TDR disclosures.
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2015 |  | September 30, 2015
|  |  |  |  |  |  |  |  | Average |  |  |  |  |  |  |  |  | Average
|  |  |  |  |  |  | Average |  | Payment |  |  |  |  |  |  | Average |  | Payment
|  | Number of |  | Outstanding |  | Interest Rate |  | Term |  | Number of |  | Outstanding |  | Interest Rate |  | Term
|  | Accounts |  | Balances (a) |  | Reduction |  | Extension |  | Accounts |  | Balances (a) |  | Reduction |  | Extension
|  | (thousands) |  | (millions) |  | (% Points) |  | (Months) |  | (thousands) |  | (millions) |  | (% Points) |  | (Months)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  | 10 |  | $ | 69 |  | 9 |  | (b) |  | 31 |  | $ | 218 |  | 10 |  | (b)
Card Member Receivables |  | 3 |  |  | 37 |  | (c) |  | 12 |  | 9 |  |  | 111 |  | (c) |  | 12
Total |  | 13 |  | $ | 106 |  |  |  |  |  | 40 |  | $ | 329 |  |  |  |
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2014 |  | September 30, 2014
|  |  |  |  |  |  |  |  | Average |  |  |  |  |  |  |  |  | Average
|  |  |  |  |  |  | Average |  | Payment |  |  |  |  |  |  | Average |  | Payment
|  | Number of |  | Outstanding |  | Interest Rate |  | Term |  | Number of |  | Outstanding |  | Interest Rate |  | Term
|  | Accounts |  | Balances (a) |  | Reduction |  | Extension |  | Accounts |  | Balances (a) |  | Reduction |  | Extension
|  | (thousands) |  | (millions) |  | (% Points) |  | (Months) |  | (thousands) |  | (millions) |  | (% Points) |  | (Months)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  | 11 |  | $ | 83 |  | 9 |  | (b) |  | 35 |  | $ | 261 |  | 11 |  | (b)
Card Member Receivables |  | 4 |  |  | 41 |  | (c) |  | 12 |  | 11 |  |  | 129 |  | (c) |  | 12
Total |  | 15 |  | $ | 124 |  |  |  |  |  | 46 |  | $ | 390 |  |  |  |
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 and nine months ended September 30, 2015 and 2014, with respect to the USCS Card Member loans and receivables modified as TDRs that subsequently defaulted w ithin 12 months of modification. A Card Member is 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 receivabl es.
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2015 |  | September 30, 2015
|  |  |  |  | Outstanding |  |  |  |  | Outstanding
|  |  | Number of |  |  | Balances |  |  | Number of |  |  | Balances
|  |  | Accounts |  | Upon Default |  |  | Accounts |  | Upon Default
|  |  | (thousands) |  | (millions)(a) |  |  | (thousands) |  | (millions) (a)
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  |  | 1 |  | $ | 14 |  |  | 6 |  | $ | 39
Card Member Receivables |  |  | 1 |  |  | 1 |  |  | 3 |  |  | 3
Total |  |  | 2 |  | $ | 15 |  |  | 9 |  | $ | 42
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2014 |  | September 30, 2014
|  |  |  |  | Outstanding |  |  |  |  | Outstanding
|  |  | Number of |  |  | Balances |  |  | Number of |  |  | Balances
|  |  | Accounts |  | Upon Default |  |  | Accounts |  | Upon Default
|  |  | (thousands) |  | (millions)(a)(b) |  |  | (thousands) |  | (millions)(a)(b)
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  |  | 2 |  | $ | 12 |  |  | 6 |  | $ | 40
Card Member Receivables |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 9
Total |  |  | 3 |  | $ | 14 |  |  | 8 |  | $ | 49
The outstanding balances upon default include principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. The outstanding balances upon default have been revised to reflect the exclusion of written off accounts, which are not material.

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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 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953791-111525 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e4975-111524 + Details
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