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Business Segments and Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure
NOTE 12—BUSINESS SEGMENTS AND REVENUE FROM CONTRACTS WITH CUSTOMERS
Our principal operations are organized into three major business segments, which are defined primarily based on the products and services provided or the types of customers served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into our existing business segments. Certain activities that are not part of a segment, such as management of our corporate investment portfolio, asset/liability management by our centralized Corporate Treasury group and residual tax expense or benefit to arrive at the consolidated effective tax rate that is not assessed to our primary business segments, are included in the Other category.
Basis of Presentation
We report the results of each of our business segments on a continuing operations basis. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources.
Business Segment Reporting Methodology
The results of our business segments are intended to present each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenue and expenses directly or indirectly attributable to each business segment. Our funds transfer pricing process provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a funds charge for the use of funds by each segment. Due to the integrated nature of our business segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate third-party rates. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. We provide additional information on the allocation methodologies used to derive our business segment results in “Note 17—Business Segments and Revenue from Contracts with Customers” in our 2019 Form 10-K.
Segment Results and Reconciliation
We may periodically change our business segments or reclassify business segment results based on modifications to our management reporting methodologies or changes in organizational alignment. The following table presents our business segment results for the three and nine months ended September 30, 2020 and 2019, selected balance sheet data as of September 30, 2020 and 2019, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.
Table 12.1: Segment Results and Reconciliation
Three Months Ended September 30, 2020
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(1)
Other(1)
Consolidated Total
Net interest income (loss)$3,292 $1,904 $517 $(158)$5,555 
Non-interest income1,013 107 237 469 1,826 
Total net revenue(2)
4,305 2,011 754 311 7,381 
Provision (benefit) for credit losses450 (43)(74)(2)331 
Non-interest expense2,003 1,011 424 110 3,548 
Income from continuing operations before income taxes1,852 1,043 404 203 3,502 
Income tax provision438 247 95 316 1,096 
Income (loss) from continuing operations, net of tax$1,414 $796 $309 $(113)$2,406 
Loans held for investment$103,641 $68,688 $75,894 $0 $248,223 
Deposits0 249,684 36,783 19,258 305,725 

Nine Months Ended September 30, 2020
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(1)
Other(1)
Consolidated Total
Net interest income (loss)$10,363 $5,226 $1,526 $(75)$17,040 
Non-interest income2,769 330 655 392 4,146 
Total net revenue(2)
13,132 5,556 2,181 317 21,186 
Provision for credit losses7,096 1,693 1,209 2 10,000 
Non-interest expense6,180 3,038 1,261 568 11,047 
Income (loss) from continuing operations before income taxes(144)825 (289)(253)139 
Income tax provision (benefit)(34)195 (69)(102)(10)
Income (loss) from continuing operations, net of tax$(110)$630 $(220)$(151)$149 
Loans held for investment$103,641 $68,688 $75,894 $0 $248,223 
Deposits0 249,684 36,783 19,258 305,725 

Three Months Ended September 30, 2019
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(1)
Other(1)
Consolidated Total
Net interest income$3,546 $1,682 $486 $23 $5,737 
Non-interest income (loss)870 165 221 (34)1,222 
Total net revenue (loss)4,416 1,847 707 (11)6,959 
Provision for credit losses1,087 203 93 0 1,383 
Non-interest expense2,360 985 414 113 3,872 
Income (loss) from continuing operations before income taxes969 659 200 (124)1,704 
Income tax provision (benefit)235 154 46 (60)375 
Income (loss) from continuing operations, net of tax$734 $505 $154 $(64)$1,329 
Loans held for investment$113,681 $62,015 $73,659 $0 $249,355 
Deposits0 206,423 30,923 19,802 257,148 
Nine Months Ended September 30, 2019
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(1)
Other(1)
Consolidated Total
Net interest income$10,667 $5,070 $1,489 $48 $17,274 
Non-interest income (loss)2,858 491 608 (65)3,892 
Total net revenue (loss)13,525 5,561 2,097 (17)21,166 
Provision for credit losses3,571 603 244 0 4,418 
Non-interest expense6,784 2,981 1,258 299 11,322 
Income (loss) from continuing operations before income taxes3,170 1,977 595 (316)5,426 
Income tax provision (benefit)747 461 138 (275)1,071 
Income (loss) from continuing operations, net of tax$2,423 $1,516 $457 $(41)$4,355 
Loans held for investment$113,681 $62,015 $73,659 $0 $249,355 
Deposits0 206,423 30,923 19,802 257,148 
__________
(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.
(2)Total net revenue was reduced by $235 million and $942 million in the three and nine months ended September 30, 2020, respectively, for finance charges and fees charged off as uncollectible.    
Revenue from Contracts with Customers
The majority of our revenue from contracts with customers consists of interchange fees, service charges and other customer-related fees, and other contract revenue. Interchange fees are primarily from our Credit Card business and are recognized upon settlement with the interchange networks, net of rewards earned by customers. Service charges and other customer-related fees within our Consumer Banking business are primarily related to fees earned on consumer deposit accounts for account maintenance and various transaction-based services such as overdrafts and ATM usage. Service charges and other customer-related fees within our Commercial Banking business are mostly related to fees earned on treasury management and capital markets services. Other contract revenue in our Credit Card business consists primarily of revenue from our partnership arrangements. Other contract revenue in our Consumer Banking business consists primarily of revenue earned on certain marketing and promotional events from our auto dealers. Revenue from contracts with customers is included in non-interest income in our consolidated statements of income.
The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three and nine months ended September 30, 2020 and 2019.
Table 12.2: Revenue from Contracts with Customers and Reconciliation to Segment Results
Three Months Ended September 30, 2020
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(1)
Other(1)
Consolidated Total
Contract revenue:
Interchange fees, net(2)
$703 $54 $17 $1 $775 
Service charges and other customer-related fees0 42 50 0 92 
Other109 5 1 0 115 
Total contract revenue812 101 68 1 982 
Revenue from other sources201 6 169 468 844 
Total non-interest income$1,013 $107 $237 $469 $1,826 
Nine Months Ended September 30, 2020
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(1)
Other(1)
Consolidated Total
Contract revenue:
Interchange fees, net(2)
$2,003 $152 $45 $(1)$2,199 
Service charges and other customer-related fees0 137 124 (1)260 
Other236 27 2 0 265 
Total contract revenue2,239 316 171 (2)2,724 
Revenue from other sources530 14 484 394 1,422 
Total non-interest income$2,769 $330 $655 $392 $4,146 

Three Months Ended September 30, 2019
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(1)
Other(1)
Consolidated Total
Contract revenue:
Interchange fees, net(2)
$722 $54 $15 $(1)$790 
Service charges and other customer-related fees0 76 35 (1)110 
Other15 26 1 0 42 
Total contract revenue737 156 51 (2)942 
Revenue from other sources133 9 170 (32)280 
Total non-interest income$870 $165 $221 $(34)$1,222 

Nine Months Ended September 30, 2019
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(1)
Other(1)
Consolidated Total
Contract revenue:
Interchange fees, net(2)
$2,181 $152 $39 $(4)$2,368 
Service charges and other customer-related fees0 225 88 (1)312 
Other47 76 2 0 125 
Total contract revenue2,228 453 129 (5)2,805 
Revenue from other sources630 38 479 (60)1,087 
Total non-interest income$2,858 $491 $608 $(65)$3,892 
__________
(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.
(2)Interchange fees are presented net of customer reward expenses.