American Express 2013 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2013 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CARD MEMBER LOANS AND RECEIVABLES MODIFIED AS TDRS
The following table provides additional information with respect to
the Card Member loans and receivables modified as TDRs, which are
not significant for ICS and GCS, during the years ended December 31:
2013
(Accounts in thousands,
Dollars in millions)
Number of
Accounts
Aggregated
Outstanding
Balances(a,b)
Troubled Debt Restructurings:
U.S. Card Services –
Card Member Loans 60 $ 448
U.S. Card Services –
Card Member Receivables 20 247
Total 80 $ 695
2012
(Accounts in thousands,
Dollars in millions)
Number of
Accounts
Aggregated
Outstanding
Balances(a,b)
Troubled Debt Restructurings:
U.S. Card Services –
Card Member Loans 106 $ 779
U.S. Card Services –
Card Member Receivables 37 425
Total 143 $ 1,204
2011
(Accounts in thousands,
Dollars in millions)
Number of
Accounts
Aggregated
Outstanding
Balances(a,b)
Troubled Debt Restructurings:
U.S. Card Services –
Card Member Loans 147 $ 1,110
U.S. Card Services –
Card Member Receivables 50 402
Total 197 $ 1,512
(a) Represents the outstanding balance immediately prior to modification. In
certain modifications the principal balance was reduced in the aggregate
amount of $4 million, $24 million and $59 million for the years ended
December 31, 2013, 2012 and 2011, respectively.
(b) Includes principal and accrued interest.
The Company has evaluated the primary financial effects of the impact
of the changes to an account upon modification as follows:
폷Temporary Interest Rate Reduction: For the years ended
December 31, 2013, 2012 and 2011, the average interest rate
reduction was 10 percentage points, 12 percentage points and 11
percentage points, respectively. None of these interest rate
reductions had a significant impact on interest on loans in the
Consolidated Statements of Income. The Company does not offer
interest rate reduction programs for U.S. Card Services (USCS)
Card Member receivables as these receivables are non-interest
bearing.
폷Placing Card Members on a Fixed Payment Plan: For the years
ended December 31, 2013, 2012 and 2011, the average payment
term extension was approximately 12 months, 13 months, and 15
months, respectively, for USCS Card Member receivables. For USCS
Card Member loans, there have been no payment term extensions.
The following table provides information for the years ended
December 31, 2013, 2012, and 2011, with respect to the Card Member
loans and receivables modified as TDRs that subsequently defaulted
within 12 months of modification. A Card Member will default from 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. The defaulted ICS Card Member loan and
receivable modifications were not significant.
2013
(Accounts in thousands,
Dollars in millions)
Number of
Accounts
Aggregated
Outstanding
Balances
Upon Default(a)
Troubled Debt Restructurings That
Subsequently Defaulted:
U.S. Card Services –
Card Member Loans 18 $ 159
U.S. Card Services –
Card Member Receivables 3 38
Total 21 $ 197
2012
(Accounts in thousands,
Dollars in millions)
Number of
Accounts
Aggregated
Outstanding
Balances
Upon Default(a)
Troubled Debt Restructurings That
Subsequently Defaulted:
U.S. Card Services –
Card Member Loans 23 $ 182
U.S. Card Services –
Card Member Receivables 1 37
Total 24 $ 219
2011
(Accounts in thousands,
Dollars in millions)
Number of
Accounts
Aggregated
Outstanding
Balances
Upon Default(a)
Troubled Debt Restructurings That
Subsequently Defaulted:
U.S. Card Services –
Card Member Loans 46 $ 343
U.S. Card Services –
Card Member Receivables 6 45
Total 52 $ 388
(a) The outstanding balance includes principal, fees, and accrued interest on
Card Member Loans and principal and fees on Card Member Receivables.
76