American Express 2015 Annual Report Download - page 181

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Impact of Non-performing Loans on Interest Income
The following table presents the gross interest income for both non-accrual and restructured loans for 2015 that
would have been recognized if such loans had been current in accordance with their original contractual terms, and
had been outstanding throughout the period or since origination if held for only part of 2015. The table also presents
the interest income related to these loans that was actually recognized for the period. These amounts are segregated
between U.S. and non-U.S. borrowers.
2015
Year Ended December 31, (Millions) U.S. Non-U.S. Total
Gross amount of interest income that would have been recorded in accordance with the
original contractual terms (a) ....................................................... $66 $— $66
Interest income actually recognized .................................................. 17 — 17
Total interest revenue foregone ................................................. $49 $— $49
(a) The Company determines the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest rate.
Potential Problem Loans and Receivables
This disclosure presents outstanding amounts as well as specific reserves for certain loans and receivables where
information about possible credit problems of the borrowers causes management to have serious doubts as to the
ability of such borrowers to comply with the present repayment terms. At December 31, 2015, the Company did not
identify any potential problem loans or receivables within the Card Member loans and receivables portfolio that were
not already included in the “Risk Elements” section.
A-8