Loans and Interest Receivable (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Delinquency status of the principal amount of loans and interest receivable

The following table presents the delinquency status of the principal amount of merchant loans, advances, and interest and fees receivable by year of origination. The amounts are based on the number of days past the expected or contractual repayment date for amounts outstanding. The “current” category represents balances that are within 29 days of the billing date for loans with fixed repayment dates, or within 29 days of the expected repayment date.

March 31, 2020
(In millions, except percentages)
	2020		2019		2018		2017		2016		Total		Percentage
Current	$	1,388	$	1,266	$	28	$	—	$	—	$	2,682	89.6%
30 - 59 Days	17		90		13		—		—		120		4.0%
60 - 89 Days	3		56		8		—		—		67		2.2%
90 - 179 Days	—		94		15		—		—		109		3.6%
180+ Days	—		7		9		1		—		17		0.6%
Total	$	1,408	$	1,513	$	73	$	1	$	—	$	2,995	100%

The following table presents our estimate of the principal amount of merchant loans, advances, and interest and fees receivable past their original expected or contractual repayment period as of December 31, 2019, prior to the adoption of the new credit losses accounting guidance as described in “Note 1—Overview and Summary of Significant Accounting Policies.”

December 31, 2019
(In millions)
Within Original Expected Repayment Period			30 - 59 Days Greater			60 - 89 Days Greater			90 - 180 Days Greater			180+ Days			Total Past Original Expected Repayment Period			Total
$	2,523		$	115		$	61		$	100		$	17		$	293		$	2,816
89.6		%	4.1		%	2.1		%	3.6		%	0.6		%	10.4		%	100		%

The following table presents the delinquency status of consumer loans and interest receivable at March 31, 2020 and December 31 2019. Since our consumer loans are primarily revolving in nature, they are disclosed in the aggregate and not by year of origination. The amounts are based on the number of days past the billing date. The “current” category represents balances that are within 29 days of the billing date:

	March 31, 2020				December 31, 2019
	Amortized Cost Basis Revolving		Percent		Amortized Cost Basis Revolving		Percent
	(In millions, except percentages)
Current	$	1,327	96.4	%	$	1,279	96.7	%
30-59 days	18		1.3	%	15		1.1	%
60-89 days	11		0.8	%	9		0.7	%
90-179 days	21		1.5	%	19		1.5	%
Total consumer loans and interest receivable(1)	$	1,377	100.0	%	$	1,322	100.0	%

⁽¹⁾ Excludes receivables from other consumer credit products of $94 million and $92 million at March 31, 2020 and December 31, 2019, respectively.

Allowance for loans and interest receivable

The following table summarizes the activity in the allowance for consumer loans and interest receivable for the three months ended March 31, 2020 and 2019:

	March 31, 2020									March 31, 2019
	Consumer Loans Receivable			Interest Receivable			Total Allowance(1)			Consumer Loans Receivable			Interest Receivable			Total Allowance(1)
	(In millions)
Beginning balance	$	49		$	8		$	57		$	27		$	3		$	30
Adjustment for adoption of credit losses accounting standard	24			4			28			—			—			—
Provisions	98			20			118			1			2			3
Charge-offs	(21		)	(4		)	(25		)	(9		)	(1		)	(10		)
Recoveries(2)	9			—			9			10			—			10
Ending balance	$	159		$	28		$	187		$	29		$	4		$	33

⁽¹⁾ Excludes allowances from other consumer credit products of $10 million and $9 million at March 31, 2020 and March 31, 2019, respectively.

⁽²⁾ The recoveries were primarily related to fully charged off U.S. consumer credit receivables not subject to the sale to Synchrony.

The following table summarizes the activity in the allowance for merchant loans, advances, and interest and fees receivable, for the three months ended March 31, 2020 and 2019:

	March 31, 2020									March 31, 2019
	Merchant Loans and Advances			Interest and Fees Receivable			Total Allowance			Merchant Loans and Advances			Interest and Fees Receivable			Total Allowance
	(In millions)
Beginning balance	$	171		$	20		$	191		$	115		$	15		$	130
Adjustment for adoption of credit losses accounting standard	165			17			182			—			—			—
Provisions	243			24			267			54			6			60
Charge-offs	(78		)	(8		)	(86		)	(37		)	(3		)	(40		)
Recoveries	3			—			3			3			—			3
Ending balance	$	504		$	53		$	557		$	135		$	18		$	153