American Express 2015 Annual Report Download - page 123
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CARD MEMBER AND OTHER LOANS
Card Member loans, representing revolving amounts due on lending card products, are recorded at the time a
Card Member enters into a point-of-sale transaction with a merchant, as well as amounts due from charge Card
Members who utilize the lending-on-charge feature on their account and elect to revolve a portion of the outstanding
balance by entering into a revolving payment arrangement with the Company. These loans have a range of terms such
as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information
about Card Members and in accordance with applicable regulations and the respective product’s terms and
conditions. Card Members holding revolving loans are typically required to make monthly payments based on pre-
established amounts. The amounts that Card Members choose to revolve are subject to finance charges.
Card Member loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4),
and include principal, accrued interest and fees receivable. The Company’s policy generally is to cease accruing
interest on a Card Member loan at the time the account is written off, and establish reserves for interest that the
Company believes will not be collected.
Loans by segment as of December 31, 2015 and 2014 consisted of:
(Millions) 2015 2014
U.S. Card Services (a) .................................................................. $51,446 $62,592
International Card Services ............................................................ 7,072 7,744
Global Commercial Services ........................................................... 55 49
Card Member loans ................................................................... 58,573 70,385
Less: Reserve for losses ............................................................... 1,028 1,201
Card Member loans, net ............................................................... $57,545 $69,184
Other loans, net (b) .................................................................... $ 1,254 $ 920
(a) Includes approximately $23.6 billion and $30.1 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of
December 31, 2015 and 2014, respectively.
(b) Other loans primarily represent loans to merchants. Other loans are presented net of reserves for losses of $20 million and $12 million as of
December 31, 2015 and 2014, respectively.
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