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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) 2015 2014 2013
Balance, January 1 ................................................................. $465 $ 386 $ 428
Provisions (a) .................................................................... 737 792 648
Net write-offs (b) ................................................................. (713) (683) (669)
Other (c) ........................................................................ (27) (30) (21)
Balance, December 31 .............................................................. $462 $ 465 $ 386
(a) Provisions for principal and fee reserve components.
(b) Consists of principal and fee components, less recoveries of $401 million, $358 million and $402 million, including net write-offs from TDRs of
$60 million, $15 million and $12 million, for the years ended December 31, 2015, 2014 and 2013, respectively.
(c) Includes foreign currency translation adjustments of $(16) million, $(15) million and $(4) million for the years ended December 31, 2015, 2014
and 2013, respectively; and other adjustments of $(11) million, $(8) million and $(17) million for the years ended December 31, 2015, 2014 and
2013, respectively. Additionally, 2015 includes the impact of the transfer of the HFS receivables portfolio, which was not significant, and 2014
includes an adjustment related to reserves for card-related fraud losses of $(7) million, which was reclassified to Other liabilities.
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) 2015 2014 2013
Card Member receivables evaluated individually for impairment (a) ................... $33$48$50
Related reserves (a) ............................................................ $20$35$38
Card Member receivables evaluated collectively for impairment ...................... $44,100 $44,803 $44,113
Related reserves (b) ............................................................ $ 442 $ 430 $ 348
(a) Represents receivables modified as a TDR and related reserves.
(b) The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal
and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment.
CHANGES IN CARD MEMBER LOANS RESERVE FOR LOSSES
The following table presents changes in the Card Member loans reserve for losses for the years ended
December 31:
(Millions) 2015 2014 2013
Balance, January 1 .............................................................. $ 1,201 $ 1,261 $ 1,471
Provisions (a) ................................................................. 1,190 1,138 1,115
Net write-offs
Principal (b) ................................................................ (967) (1,023) (1,141)
Interest and fees (b) ......................................................... (162) (164) (150)
Transfer of reserves on HFS loan portfolios ....................................... (224) ——
Other (c) ..................................................................... (10) (11) (34)
Balance, December 31 .......................................................... $1,028 $ 1,201 $ 1,261
(a) Provisions for principal interest and fee reserve components.
(b) Consists of principal write-offs, less recoveries of $418 million, $428 million and $452 million, including net write-offs/(recoveries) from TDRs of
$41 million, $(10) million and $(1) million, for the years ended December 31, 2015, 2014 and 2013, respectively. Recoveries of interest and fees
were de minimis.
(c) Includes foreign currency translation adjustments of $(20) million, $(17) million and $(12) million for the years ended December 31, 2015, 2014
and 2013, respectively, and other adjustments of $10 million, $12 million and $(22) million for the years ended December 31, 2015, 2014 and
2013, respectively. Additionally, 2014 includes an adjustment related to reserves for card-related fraud losses of $(6) million, which were
reclassified to Other liabilities.
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