American Express 2009 Annual Report Download - page 83

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
receivables write-offs in 2008 included approximately $341
million resulting from this change in write-off methodology.
The impact of this change to the provision for charge card
losses was not material.
Accounts receivable as of December 31 consisted of:
(Millions) 2009 2008
U.S. Card Services $17,750 $17,822
International Card Services 5,944 5,582
Global Commercial Services 9,844 9,397
Global Network & Merchant Services(a) 205 187
Cardmember receivables gross(b) 33,743 32,988
Less: Cardmember reserve for losses 546 810
Cardmember receivables, net $33,197 $32,178
Other receivables, net(c) $ 5,007 $ 4,393
(a) Includes receivables primarily related to the Company’s business
partners and International Currency Card portfolios.
(b) Includes approximately $10.4 billion and $9.9 billion of
cardmember receivables outside the United States as of
December 31, 2009 and 2008, respectively.
(c) Other receivables primarily represent amounts due from the
Company’s travel customers, third party issuing partners, accrued
interest on investments, receivables acquired in connection with
the purchase of CPS, Company cash held in an off-balance sheet
securitization trust for daily settlement requirements and other
receivables due to the Company in the ordinary course of
business.
The following table presents changes in the cardmember
receivables reserve for losses for years ended December 31:
(Millions) 2009 2008 2007
Balance, January 1 $ 810 $ 1,149 $ 981
Additions:
Cardmember receivables
provision(a) 857 1,363 1,140
Deductions:
Cardmember receivables net write-
offs(a) (1,131) (1,552) (907)
Cardmember receivables other(b) 10 (150 ) (65)
Balance, December 31 $ 546 $ 810 $1,149
(a) For cardmember receivables, represents provision for losses and
write-offs consisting of principal (resulting from authorized and
unauthorized transactions) and fee components, less recoveries of
$349 million, $187 million and $203 million for 2009, 2008 and
2007, respectively.
(b) For December 31, 2008, these amounts primarily include
adjustments related to the reclassification of waived fee reserves to
a contra-cardmember receivable. This amount, for all periods,
includes foreign currency translation adjustments.
Refer to Note 5 for discussion on pledged cardmember
receivables as of December 31, 2009 and 2008. Also refer to
Note 5 for impaired cardmember receivables as of
December 31, 2009 and 2008.
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