American Express 2012 Annual Report Download - page 77

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table provides additional information with respect to the Company’s impaired cardmember loans and receivables, which
are not significant for ICS and GCS, as of December 31:
2012 (Millions)
Loans over
90 Days
Past Due
& Accruing
Interest(a)
Non-
Accrual
Loans(b)
Loans &
Receivables
Modified
as a TDR(c)
Total
Impaired
Loans &
Receivables
Unpaid
Principal
Balance(d)
Allowance
for TDRs(e)
Cardmember Loans:
U.S. Card Services $ 73 $ 426 $ 627 $ 1,126 $ 1,073 $ 152
International Card Services 59 5 6 70 69 1
Cardmember Receivables:
U.S. Card Services — — 117 117 111 91
Total $ 132 $ 431 $ 750 $ 1,313 $ 1,253 $ 244
2011 (Millions)
Loans over
90 Days
Past Due
& Accruing
Interest(a)
Non-
Accrual
Loans(b)
Loans &
Receivables
Modified
as a TDR(c)
Total
Impaired
Loans &
Receivables
Unpaid
Principal
Balance(d)
Allowance
for TDRs(e)
Cardmember Loans:
U.S. Card Services $ 64 $ 529 $ 736 $ 1,329 $ 1,268 $ 174
International Card Services 67 6 8 81 80 2
Cardmember Receivables:
U.S. Card Services — — 174 174 165 118
Total $ 131 $ 535 $ 918 $ 1,584 $ 1,513 $ 294
(a) The Company’s policy is generally to accrue interest through the date of write-off (at 180 days past due). The Company establishes reserves for interest that the
Company believes will not be collected. Excludes loans modified as a TDR.
(b) Non-accrual loans not in modification programs include certain cardmember loans placed with outside collection agencies for which the Company has ceased
accruing interest. The Company’s policy is generally not to resume the accrual of interest on these loans. Payments received are applied against the recorded loan
balance. Interest income is recognized on a cash basis for any payments received after the loan balance has been paid in full. Excludes loans modified asaTDR.
(c) Total loans and receivables modified as a TDR includes $320 million and $410 million that are non-accrual and $6 million and $4 million that are past due90days
and still accruing interest as of December 31, 2012 and 2011, respectively.
(d) Unpaid principal balance consists of cardmember charges billed and excludes other amounts charged directly by the Company such as interest and fees.
(e) Represents the reserve for losses for TDRs, which are evaluated separately for impairment. The Company records a reserve for losses for all impaired loans. Refer to
Cardmember Loans Evaluated Separately and Collectively for Impairment in Note 5 for further discussion of the reserve for losses on loans over 90 days past due and
accruing interest and non-accrual loans, which are evaluated collectively for impairment.
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