American Express 2014 Annual Report Download - page 80

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Loans by segment as of December 31, 2014 and 2013 consisted of:
(Millions) 2014 2013
U.S. Card Services(a) $62,592$58,395
International Card Services 7,744 8,790
Global Commercial Services 49 53
Card Member loans 70,385 67,238
Less: Reserve for losses 1,201 1,261
Card Member loans, net $ 69,184 $ 65,977
Other loans, net(b) $920$608
(a) Includes approximately $30.1 billion and $31.2 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2014
and 2013, respectively.
(b) Other loans primarily represent loans to merchants and a store card loan portfolio. Other loans are presented net of reserves for losses of $12 million and $13
million as of December 31, 2014 and 2013, respectively.
CARD MEMBER LOANS AND CARD MEMBER 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 December 31, 2014 and 2013:
2014 (Millions) Current
30-59
Days
Past
Due
60-89
Days
Past
Due
90+
Days
Past
Due Total
Card Member Loans:
U.S. Card Services $ 61,995 $ 179 $ 128 $ 290 $ 62,592
International Card Services 7,621 39 27 57 7,744
Card Member Receivables:
U.S. Card Services $ 22,096 $ 129 $ 72 $ 171 $ 22,468
International Card Services(a) 7,557 29 20 47 7,653
Global Commercial Services (b) (b) (b) 120 14,583
2013 (Millions) Current
30-59
Days
Past
Due
60-89
Days
Past
Due
90+
Days
Past
Due Total
Card Member Loans:
U.S. Card Services $ 57,772 $ 183 $ 134 $ 306 $ 58,395
International Card Services 8,664 43 28 55 8,790
Card Member Receivables:
U.S. Card Services $ 21,488 $ 125 $ 69 $ 160 $ 21,842
International Card Services (b) (b) (b) 83 7,771
Global Commercial Services (b) (b) (b) 132 14,391
(a) Beginning in the first quarter 2014, as a result of system enhancements, delinquency data is now available and presented on a prospective basis for the
indicated aging categories. Comparable data for prior periods is not available. For risk management purposes, the Company has historically utilized90days
past billing for the International Card Services (ICS) segment, as described below in (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. For Card Member receivables in GCS as of December 31, 2014 and ICS and GCS as of December 31, 2013, 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 the Company initiates collection procedures on an account prior to the account becoming 90 days past
billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for
presentation purposes.
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