American Express 2015 Annual Report Download - page 180

Risk Elements
The following table presents the amounts of non-performing loans and Card Member receivables that are either
non-accrual, past due, or restructured, segregated between U.S. and non-U.S. borrowers. Past due loans are loans
that are contractually past due 90 days or more as to principal or interest payments. Restructured loans and Card
Member receivables are those that meet the definition of a TDR.
December 31, (Millions) 2015 2014 2013 2012 2011
Loans
Non-accrual loans (a)
U.S. ............................................................ $ 154 $ 241 $ 294 $ 433 $ 529
Non-U.S. ........................................................ ——4 8 9
Total non-accrual loans .......................................... 154 241 298 441 538
Loans contractually 90 days past-due and still accruing interest (b)
U.S. ............................................................ 164 162 174 77 64
Non-U.S. ........................................................ 52 58 54 61 70
Total loans contractually 90 days past-due and still accruing interest ... 216 220 228 138 134
Restructured loans (c)
U.S. ............................................................ 279 286 351 627 736
Non-U.S. ........................................................ ——5 6 8
Total restructured loans ......................................... 279 286 356 633 744
Total non-performing loans .................................... $ 649 $ 747 $ 882 $ 1,212 $ 1,416
Card Member receivables
Restructured Card Member receivables (c)
U.S. ............................................................ 33 48 50 117 174
Total restructured Card Member receivables .................... $33$ 48 $ 50 $ 117 $ 174
(a) Non-accrual loans not in modification programs primarily include certain Card Member loans placed with outside collection agencies for which
the Company has ceased accruing interest.
(b) The Company’s policy is generally to accrue interest through the date of write-off (typically 180 days past due). The Company establishes
reserves for interest that it believes will not be collected. Amounts presented exclude loans classified as a TDR.
(c) The Company may modify, through various programs, Card Member loans and receivables in instances where the Card Member is experiencing
financial difficulty in order to minimize losses and improve collectability, while providing Card Members with temporary or permanent financial
relief. The Company has classified Card Member loans and receivables in these modification programs as TDRs. Such modifications to the loans
and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is characterized
as non-accrual in the Company’s TDR disclosures), (ii) placing the Card Member on a fixed payment plan not to exceed 60 months and
(iii) suspending delinquency fees until the Card Member exits the modification program. Beginning January 1, 2015, on a prospective basis the
Company continues to classify Card Member accounts that have exited a modification program as a TDR, with such accounts identified as “Out
of Program TDRs”. Refer to Note 3 to the Consolidated Financial Statements for additional information.
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