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Loans and Accounts Receivable | 6 Months Ended
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Jun. 30, 2016
Loans Notes Trade And Other Receivables Disclosure [Abstract] |
Loans and Accounts Receivable | 3. Loans and Accounts Receivable T he Company’s lending and charge payment card products result in the generation of Card Member loans and Card Member receivables, respectively. This Note is presented excluding amounts associated with the Card Member loans and receivables HFS as of December 31, 2015; the Company did not have any Card Member loans and receivables HFS as of June 30, 2016. Card Member l oans by segment and Other loans as of June 30, 2016 and December 31, 2015 consisted of:
(Millions) |  |  | 2016 |  |  | 2015
U.S. Consumer Services(a) |  | $ | 44,594 |  | $ | 43,495
International Consumer and Network Services |  |  | 6,600 |  |  | 7,072
Global Commercial Services |  |  | 8,693 |  |  | 8,006
Card Member loans |  |  | 59,887 |  |  | 58,573
Less: Reserve for losses |  |  | 1,091 |  |  | 1,028
Card Member loans, net |  | $ | 58,796 |  | $ | 57,545
Other loans, net(b) |  | $ | 1,132 |  | $ | 1,254
Includes approximately $25.3 billion and $23.6 billion of gross Card Member loans available to settle obligations o f a consolidated variable interest entity (VIE) as of June 30, 2016 and December 31, 2015, respectively. Other loans primarily represent loans to merchants. Other loans are presented net of reserves for losses of $36 million and $20 million as of June 30, 2016 and December 31, 2015, respectively. Card Member a ccounts receivable by segment and Other receivables as of June 30, 2016 and December 31, 2015 consisted of:
(Millions) |  | 2016 |  | 2015
U.S. Consumer Services (a) |  | $ | 10,587 |  | $ | 11,807
International Consumer and Network Services |  |  | 5,582 |  |  | 5,599
Global Commercial Services |  |  | 29,054 |  |  | 26,727
Card Member receivables (b) |  |  | 45,223 |  |  | 44,133
Less: Reserve for losses |  |  | 423 |  |  | 462
Card Member receivables, net |  | $ | 44,800 |  | $ | 43,671
Other receivables, net (c) |  | $ | 2,697 |  | $ | 3,024
Includes $5.8 b illion and $6.6 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of June 30, 2016 and December 31, 2015, respectively. Includes approximately $12.7 billion and $11.9 billion of Card Member receivables outside the United States as of June 30, 2016 and December 31, 2015, respectively. Other receivables primarily represent amounts related to (i) GNS partner banks for items such as royalty and franchise fees, (ii) certain merchants for billed discount revenue, and (iii) l oyalty coalition partners for points issued, as well as program p articipation and servicing fees. Other receivables are presented net of r eserves for losses of $50 million and $43 million as of June 30, 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 June 30, 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 |  | $ | 44,120 |  | $ | 128 |  | $ | 100 |  | $ | 246 |  | $ | 44,594
International Consumer and Network Services |  |  | 6,491 |  |  | 33 |  |  | 23 |  |  | 53 |  |  | 6,600
Global Commercial Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Small Business Services |  |  | 8,547 |  |  | 27 |  |  | 20 |  |  | 50 |  |  | 8,644
Global Corporate Payments(a) |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 1 |  |  | 49
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Consumer Services |  | $ | 10,464 |  | $ | 44 |  | $ | 24 |  | $ | 55 |  | $ | 10,587
International Consumer and Network Services |  |  | 5,503 |  |  | 24 |  |  | 15 |  |  | 40 |  |  | 5,582
Global Commercial Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Small Business Services |  |  | 13,516 |  |  | 64 |  |  | 39 |  |  | 87 |  |  | 13,706
Global Corporate Payments(a) |  |  | (b) |  |  | (b) |  |  | (b) |  |  | 111 |  |  | 15,348
|  |  |  |  |  | 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 9 0 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 ava ilable 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 Qua lity Indicators for Card Member Loans and Receivables The following table s prese nt the key credit quality indicators as of or for the six months ended June 30:
|  | 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 | % | 1.1 | % | 1.4 | % | 1.7 | % | 0.9 | %
International Consumer and |  |  |  |  |  |  |  |  |  |  |  |  |
Network Services |  | 2.0 | % | 2.4 | % | 1.7 | % | 2.0 | % | 2.5 | % | 1.6 | %
Global Small Business Services |  | 1.3 | % | 1.6 | % | 1.1 | % | 1.3 | % | 1.5 | % | 0.9 | %
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Consumer Services |  | 1.5 | % | 1.8 | % | 1.2 | % | 1.7 | % | 1.9 | % | 1.4 | %
International Consumer and |  |  |  |  |  |  |  |  |  |  |  |  |
Network Services |  | 2.2 | % | 2.4 | % | 1.4 | % | 2.0 | % | 2.2 | % | 1.5 | %
Global Small Business Services |  | 1.7 | % | 2.0 | % | 1.4 | % | 2.0 | % | 2.3 | % | 1.6 | %
|  |  |  |  |  | 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 | 0.09 | % | 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 R eceivables 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 on e 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 of June 30, 2016 and December 31, 2015; therefore, the segment’s receivables are not included in the following tables.
|  |  | As of June 30, 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 |  | $ | 162 |  | $ | 141 |  | $ | 174 |  | $ | 116 |  | $ | 593 |  | $ | 545 |  | $ | 52
International Consumer and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Network Services |  |  | 53 |  |  | ― |  |  | ― |  |  | ― |  |  | 53 |  |  | 53 |  |  | ―
Global Commercial Services |  |  | 29 |  |  | 32 |  |  | 28 |  |  | 24 |  |  | 113 |  |  | 104 |  |  | 10
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Consumer Services |  |  | ― |  |  | ― |  |  | 8 |  |  | 4 |  |  | 12 |  |  | 11 |  |  | 5
Global Commercial Services |  |  | ― |  |  | ― |  |  | 18 |  |  | 7 |  |  | 25 |  |  | 25 |  |  | 14
Total |  | $ | 244 |  | $ | 173 |  | $ | 228 |  | $ | 151 |  | $ | 796 |  | $ | 738 |  | $ | 81
|  |  | 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 inte rest through the date of write-off (typically 18 0 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 as a TDR include $19 million and $20 million that are over 90 days past due and accruing interest and $16 million and $18 milli on that are non-accruals as of June 30, 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 $114 million and $84 million of Card Member accounts that have successfully completed a modification program and $37 million and $29 million of Card M ember accounts that were not in compliance with the terms of the modification programs as of June 30, 2016 and December 31, 2015, respectively. The following table provides information with respect to the Company’s average balances of, and inte rest income recognized from, impaired Card Member loans and the average balances of impaired Card Member receivables for the three and six months ended June 30:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2016 |  | June 30, 2016
|  |  |  | Interest |  |  |  | Interest
|  | Average |  | Income |  | Average |  | Income
(Millions) |  |  | Balance |  | Recognized |  |  | Balance |  | Recognized
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Consumer Services |  | $ | 551 |  | $ | 12 |  | $ | 555 |  | $ | 24
International Consumer and Network Services |  |  | 54 |  |  | 4 |  |  | 53 |  |  | 8
Global Commercial Services |  |  | 102 |  |  | 3 |  |  | 103 |  |  | 6
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Consumer Services |  |  | 13 |  |  | ― |  |  | 12 |  |  | ―
Global Commercial Services |  |  | 25 |  |  | ― |  |  | 20 |  |  | ―
Total |  | $ | 745 |  | $ | 19 |  | $ | 743 |  | $ | 38
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2015 |  | June 30, 2015
|  |  |  | Interest |  |  |  | Interest
|  | Average |  | Income |  | Average |  | Income
(Millions) |  |  | Balance |  | Recognized |  |  | Balance |  | Recognized
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Consumer Services |  | $ | 582 |  | $ | 11 |  | $ | 578 |  | $ | 22
International Consumer and Network Services |  |  | 55 |  |  | 3 |  |  | 58 |  |  | 7
Global Commercial Services |  |  | 109 |  |  | 3 |  |  | 106 |  |  | 5
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Consumer Services |  |  | 10 |  |  | ― |  |  | 14 |  |  | ―
Global Commercial Services |  |  | 17 |  |  | ― |  |  | 24 |  |  | ―
Total |  | $ | 773 |  | $ | 17 |  | $ | 780 |  | $ | 34
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 and six months ended June 30, 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 |  | Six Months Ended
|  | June 30, 2016 |  | June 30, 2016
|  |  |  |  |  |  |  |  | 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
|  | (in thousands) |  | ($ in millions) |  | (% Points) |  | (# of Months) |  | (in thousands) |  | ($ in millions) |  | (% Points) |  | (# of Months)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  | 7 |  | $ | 50 |  | 10 |  | (b) |  | 15 |  | $ | 107 |  | 11 |  | (b)
Card Member Receivables |  | 2 |  |  | 27 |  | (c) |  | 17 |  | 5 |  |  | 65 |  | (c) |  | 17
Total |  | 9 |  | $ | 77 |  |  |  |  |  | 20 |  | $ | 172 |  |  |  |
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2015 |  | June 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
|  | (in thousands) |  | ($ in millions) |  | (% Points) |  | (# of Months) |  | (in thousands) |  | ($ in millions) |  | (% Points) |  | (# of Months)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  | 10 |  | $ | 70 |  | 10 |  | (b) |  | 21 |  | $ | 150 |  | 11 |  | (b)
Card Member Receivables |  | 3 |  |  | 34 |  | (c) |  | 12 |  | 6 |  |  | 74 |  | (c) |  | 12
Total |  | 13 |  | $ | 104 |  |  |  |  |  | 27 |  | $ | 224 |  |  |  |
Represents the outstanding balance im mediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. M odifications 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 follo wing table provides information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs that subsequently defaulted w ithin 12 months of modification during the three and six months ended June 30, 2016 and 2015. 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 receivables.
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2016 |  | June 30, 2016
|  |  |  |  |  | Aggregated |  |  |  |  |  | Aggregated
|  |  |  |  | Outstanding |  |  |  |  | Outstanding
|  |  | Number of |  |  | Balances |  |  | Number of |  |  | Balances
|  |  | Accounts |  | Upon Default(a) |  |  | Accounts |  | Upon Default(a)
|  |  | (in thousands) |  | ($ in millions) |  |  | (in thousands) |  | ($ in millions)
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  |  | 1 |  | $ | 9 |  |  | 2 |  | $ | 18
Card Member Receivables |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 2
Total |  |  | 2 |  | $ | 10 |  |  | 4 |  | $ | 20
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2015 |  | June 30, 2015
|  |  |  |  |  | Aggregated |  |  |  |  |  | Aggregated
|  |  |  |  | Outstanding |  |  |  |  | Outstanding
|  |  | Number of |  |  | Balances |  |  | Number of |  |  | Balances
|  |  | Accounts |  | Upon Default(a) |  |  | Accounts |  | Upon Default(a)
|  |  | (in thousands) |  | ($ in millions) |  |  | (in thousands) |  | ($ in millions)
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  |  | 3 |  | $ | 15 |  |  | 5 |  | $ | 25
Card Member Receivables |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 2
Total |  |  | 4 |  | $ | 16 |  |  | 7 |  | $ | 27
The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables.

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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=49124121&loc=d3e4975-111524 + Details
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