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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CHANGES IN CARD MEMBER RECEIVABLES RESERVE FOR LOSSES
The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31:
(Millions) 2014 2013 2012
Balance, January 1 $386$428$ 438
Provisions(a) 792 648 601
Net write-offs(b) (683) (669) (640)
Other(c) (30) (21) 29
Balance, December 31 $465$386$ 428
(a) Provisions for principal (resulting from authorized transactions) and fee reserve components.
(b) Consists of principal (resulting from authorized transactions) and fee components, less recoveries of $358 million, $402 million and $383 million, including net
write-offs from TDRs of $15 million, $12 million and $87 million, for the years ended December 31, 2014, 2013 and 2012, respectively.
(c) Beginning in the first quarter 2014, reserves for card-related fraud losses of $(7) million are included in Other liabilities. Also includes foreign currency
translation adjustments of $(15) million, $(4) million and $2 million for the years ended December 31, 2014, 2013 and 2012, respectively; a reclassification of
Card Member bankruptcy reserves of $18 million from Other liabilities to credit reserves in 2012 only and other items of $(8) million, $(17) million and $9 million
for the years ended December 31, 2014, 2013 and 2012, respectively.
CARD MEMBER RECEIVABLES EVALUATED INDIVIDUALLY AND COLLECTIVELY FOR IMPAIRMENT
The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of
December 31:
(Millions) 2014 2013 2012
Card Member receivables evaluated individually for impairment(a) $48$50$ 117
Related reserves(a) $35$38$ 91
Card Member receivables evaluated collectively for impairment $ 44,803 $ 44,113 $ 42,649
Related reserves(b) $430$ 348 $ 337
(a) Represents receivables modified in a TDR and related reserves. Refer to the Impaired Card Member Loans and Receivables discussion in Note 3 for further
information.
(b) The reserves include the quantitative results of analytical models that are specific to individual pools of receivables and reserves for internalandexternal
qualitative risk factors that apply to receivables that are collectively evaluated for impairment.
CHANGES IN CARD MEMBER LOANS RESERVE FOR LOSSES
ThefollowingtablepresentschangesintheCardMemberloansreserveforlossesfortheyearsendedDecember31:
(Millions) 2014 2013 2012
Balance, January 1 $1,261$ 1,471 $ 1,874
Provisions(a) 1,138 1,115 1,030
Net write-offs
Principal(b) (1,023) (1,141) (1,280)
Interest and fees(b) (164) (150) (157)
Other(c) (11) (34) 4
Balance, December 31 $1,201$ 1,261 $ 1,471
(a) Provisions for principal (resulting from authorized transactions), interest and fee reserves components.
(b) Consists of principal write-offs (resulting from authorized transactions), less recoveries of $428 million, $452 million and $493 million, including net write-offs
from TDRs of $(10) million, $(1) million and $25 million, for the years ended December 31, 2014, 2013 and 2012, respectively. Recoveries of interest and fees
were de minimis.
(c) Beginning in the first quarter 2014, reserves for card-related fraud losses of $(6) million are included in Other liabilities. Also includes foreign currency
translation adjustments of $(17) million, $(12) million and $7 million for the years ended December 31, 2014, 2013 and 2012, respectively, a reclassification of
Card Member bankruptcy reserves of $4 million from Other liabilities to credit reserves in 2012 only and other items of $12 million, $(22) million and $(7) million
for the years ended December 31, 2014, 2013 and 2012, respectively.
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