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Loans and Card Member Receivables | 3 Months Ended
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Mar. 31, 2021
Receivables [Abstract] |
Loans and Card Member Receivables | Loans and Card Member Receivables Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables. We also extend credit to consumer and commercial customers through non-card financing products, resulting in Other loans. Card Member loans by segment and Other loans as of March 31, 2021 and December 31, 2020 consisted of:
(Millions) |  | 2021 |  | 2020
Global Consumer Services Group (a) |  | $ | 56,265 |  |  | $ | 60,084 |
Global Commercial Services |  | 13,835 |  |  | 13,289 |
Card Member loans |  | 70,100 |  |  | 73,373 |
Less: Reserves for credit losses |  | 4,467 |  |  | 5,344 |
Card Member loans, net |  | $ | 65,633 |  |  | $ | 68,029 |
Other loans, net (b) |  | $ | 2,133 |  |  | $ | 2,614 |
(a)Includes approximately $24.1 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2021 and December 31, 2020, respectively. (b)Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.5 billion and $0.6 billion of gross PPP loans outstanding as of March 31, 2021 and December 31, 2020, respectively. Other loans are presented net of reserves for credit losses of $143 million and $238 million as of March 31, 2021 and December 31, 2020, respectively. Card Member receivables by segment as of March 31, 2021 and December 31, 2020 consisted of:
(Millions) |  | 2021 |  | 2020
Global Consumer Services Group |  | $ | 17,228 |  |  | $ | 18,685 |
Global Commercial Services (a) |  | 24,774 |  |  | 25,016 |
Card Member receivables |  | 42,002 |  |  | 43,701 |
Less: Reserves for credit losses |  | 202 |  |  | 267 |
Card Member receivables, net |  | $ | 41,800 |  |  | $ | 43,434 |
(a)Includes $4.2 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31, 2021 and December 31, 2020, respectively. Card Member Loans and 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, 2021 and December 31, 2020:
2021 (Millions) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total
Card Member Loans: |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | $ | 55,728 |  |  | $ | 139 |  |  | $ | 106 |  |  | $ | 292 |  |  | $ | 56,265 |
Global Commercial Services |  |  |  |  |  |  |  |  |  |
Global Small Business Services |  | 13,682 |  |  | 24 |  |  | 18 |  |  | 38 |  |  | 13,762 |
Global Corporate Payments (a) |  | (b) |  | (b) |  | (b) |  | — |  |  | 73 |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | 17,129 |  |  | 29 |  |  | 20 |  |  | 50 |  |  | 17,228 |
Global Commercial Services |  |  |  |  |  |  |  |  |  |
Global Small Business Services |  | $ | 14,191 |  |  | $ | 33 |  |  | $ | 21 |  |  | $ | 32 |  |  | $ | 14,277 |
Global Corporate Payments (a) |  | (b) |  | (b) |  | (b) |  | $ | 47 |  |  | $ | 10,497 |
2020 (Millions) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total
Card Member Loans: |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | $ | 59,442 |  |  | $ | 177 |  |  | $ | 148 |  |  | $ | 317 |  |  | $ | 60,084 |
Global Commercial Services |  |  |  |  |  |  |  |  |  |
Global Small Business Services |  | 13,132 |  |  | 27 |  |  | 20 |  |  | 47 |  |  | 13,226 |
Global Corporate Payments (a) |  | (b) |  | (b) |  | (b) |  | — |  |  | 63 |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | 18,570 |  |  | 33 |  |  | 26 |  |  | 56 |  |  | 18,685 |
Global Commercial Services |  |  |  |  |  |  |  |  |  |
Global Small Business Services |  | $ | 14,023 |  |  | $ | 37 |  |  | $ | 21 |  |  | $ | 38 |  |  | $ | 14,119 |
Global Corporate Payments (a) |  | (b) |  | (b) |  | (b) |  | $ | 60 |  |  | $ | 10,897 |
(a)Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. 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 we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b). (b)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 ended March 31:
|  | 2021 |  | 2020
| Net Write-Off Rate |  |  |  | Net Write-Off Rate |  |
| Principal Only(a) |  | Principal, Interest & Fees(a) |  | 30+ Days Past Due as a % of Total |  | Principal Only(a) |  | Principal, Interest & Fees(a) |  | 30+ Days Past Due as a % of Total
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | 1.4 | % |  | 1.8 | % |  | 1.0 | % |  | 2.6 | % |  | 3.2 | % |  | 1.7 | %
Global Small Business Services |  | 1.0 | % |  | 1.2 | % |  | 0.6 | % |  | 1.9 | % |  | 2.2 | % |  | 1.4 | %
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | 0.5 | % |  | 0.6 | % |  | 0.6 | % |  | 2.0 | % |  | 2.2 | % |  | 1.7 | %
Global Small Business Services |  | 0.5 | % |  | 0.5 | % |  | 0.6 | % |  | 2.2 | % |  | 2.5 | % |  | 2.0 | %
Global Corporate Payments |  | (b) |  | 0.4 | % |  | (c) |  | (b) |  | 1.0 | % |  | (c)
(a)We present 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 we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (b)Net write-off rate based on principal losses only is not available due to system constraints. (c)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total was 0.4% and 1.1% as of March 31, 2021 and 2020, respectively. Refer to Note 3 for additional indicators, including external environmental qualitative factors, management considers in its evaluation process for reserves for credit losses. Impaired 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 we will be unable to collect all amounts due according to the original contractual terms of the customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) non-accrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs). In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.” The following tables provide additional information with respect to our impaired loans and receivables as of March 31, 2021 and December 31, 2020:
|  | As of March 31, 2021
|  |  |  | Accounts Classified as a TDR (c) |  |
2021 (Millions) |  | Over 90 days Past Due & Accruing Interest(a) |  | Non- Accruals(b) |  | In Program(d) |  | Out of Program(e) |  | Total Impaired Balance |  |  | Reserve for Credit Losses - TDRs
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | $ | 183 |  |  | $ | 126 |  |  | $ | 1,550 |  |  | $ | 293 |  |  | $ | 2,152 |  |  |  | $ | 733 |
Global Commercial Services |  | 17 |  |  | 22 |  |  | 452 |  |  | 84 |  |  | 575 |  |  |  | 252 |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | — |  |  | — |  |  | 219 |  |  | 41 |  |  | 260 |  |  |  | 64 |
Global Commercial Services |  | — |  |  | — |  |  | 439 |  |  | 97 |  |  | 536 |  |  |  | 137 |
Other Loans(f) |  | 1 |  |  | 1 |  |  | 196 |  |  | 7 |  |  | 205 |  |  |  | 65 |
Total |  | $ | 201 |  |  | $ | 149 |  |  | $ | 2,856 |  |  | $ | 522 |  |  | $ | 3,728 |  |  |  | $ | 1,251 |
|  | As of December 31, 2020
|  |  |  |  |  | Accounts Classified as a TDR (c) |  |  |  |  |
2020 (Millions) |  | Over 90 days Past Due & Accruing Interest(a) |  | Non- Accruals(b) |  | In Program(d) |  | Out of Program(e) |  | Total Impaired Balance |  |  | Reserve for Credit Losses - TDRs
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | $ | 203 |  |  | $ | 146 |  |  | $ | 1,586 |  |  | $ | 248 |  |  | $ | 2,183 |  |  |  | $ | 782 |
Global Commercial Services |  | 21 |  |  | 29 |  |  | 478 |  |  | 67 |  |  | 595 |  |  |  | 285 |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
Global Consumer Services Group |  | — |  |  | — |  |  | 240 |  |  | 34 |  |  | 274 |  |  |  | 60 |
Global Commercial Services |  | — |  |  | — |  |  | 534 |  |  | 75 |  |  | 609 |  |  |  | 139 |
Other Loans (f) |  | 2 |  |  | 1 |  |  | 248 |  |  | 6 |  |  | 257 |  |  |  | 80 |
Total |  | $ | 226 |  |  | $ | 176 |  |  | $ | 3,086 |  |  | $ | 430 |  |  | $ | 3,918 |  |  |  | $ | 1,346 |
(a)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR. (b)Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs. (c)Accounts classified as a TDR include $35 million and $32 million that are over 90 days past due and accruing interest and $12 million and $11 million that are non-accruals as of March 31, 2021 and December 31, 2020, respectively. (d)In Program TDRs include accounts that are currently enrolled in a modification program. (e)Out of Program TDRs include $395 million and $316 million of accounts that have successfully completed a modification program and $127 million and $114 million of accounts that were not in compliance with the terms of the modification programs as of March 31, 2021 and December 31, 2020, respectively. (f)Other loans primarily represent consumer and commercial non-card financing products. Loans and Receivables Modified as TDRs The following tables provide additional information with respect to loans and receivables that entered a financial relief program and were modified as TDRs during the three months ended March 31, 2021 and 2020:
|  | Three Months Ended March 31, 2021 |  |
|  | Number of Accounts (thousands) |  | Account Balances (millions)(a) |  | Average Interest Rate Reduction (% Points) |  | Average Payment Term Extensions (# of Months) |  |  |  |  |  |  |  |
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  | 38 |  |  | $ | 287 |  |  | 13 |  |  | (b) |  |  |  |  |  |  |  |
Card Member Receivables |  | 7 |  |  | 117 |  |  | (c) |  | 18 |  |  |  |  |  |  |  |
Other Loans(d) |  | 1 |  |  | 8 |  |  | 3 |  |  | 15 |  |  |  |  |  |  |  |
Total |  | 46 |  |  | $ | 412 |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended March 31, 2020 |  |
|  | Number of Accounts (thousands) |  | Account Balances (millions)(a) |  | Average Interest Rate Reduction (% Points) |  | Average Payment Term Extensions (# of Months) |  |  |  |  |  |  |  |
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  | 24 |  |  | $ | 195 |  |  | 14 |  |  | (b) |  |  |  |  |  |  |  |
Card Member Receivables |  | 3 |  |  | 74 |  |  | (c) |  | 25 |  |  |  |  |  |  |  |
Total |  | 27 |  |  | $ | 269 |  |  |  |  |  |  |  |  |  |  |  |  |
(a)Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance. (b)For Card Member loans, there have been no payment term extensions. (c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. (d)Other loans primarily represent consumer and commercial non-card financing products. Prior period balances were not significant. The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.
|  | Three Months Ended March 31, 2021 |  |
| Number of Accounts (thousands) |  | Aggregated Outstanding Balances Upon Default (millions)(a) |  |  |  |
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |  |  |
Card Member Loans |  | 7 |  |  | $ | 47 |  |  |  |  |
Card Member Receivables |  | 1 |  |  | 19 |  |  |  |  |
Other Loans (b) |  | 1 |  |  | 5 |  |  |  |  |
Total |  | 9 |  |  | $ | 71 |  |  |  |  |
|  | Three Months Ended March 31, 2020 |  |
| Number of Accounts (thousands) |  | Aggregated Outstanding Balances Upon Default (millions)(a) |  |  |  |
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |  |  |
Card Member Loans |  | 4 |  |  | $ | 28 |  |  |  |  |
Card Member Receivables |  | 1 |  |  | 9 |  |  |  |  |
Total |  | 5 |  |  | $ | 37 |  |  |  |  |
(a)The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables. (b)Other loans primarily represent consumer and commercial non-card financing products.

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