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Reserves for Losses
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Reserve for Losses Reserves for Losses
Reserves for losses relating to Card Member loans and receivables represent management’s best estimate of the probable inherent losses in our outstanding portfolio of loans and receivables as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.
Changes in Card Member Loans Reserve for Losses
The following table presents changes in the Card Member loans reserve for losses for the six months ended June 30:
(Millions)
 
2019

 
2018

Balance, January 1
 
$
2,134

 
$
1,706

Provisions (a)
 
1,128

 
1,027

Net write-offs (b)
 
 
 
 
Principal
 
(920
)
 
(747
)
Interest and fees
 
(186
)
 
(148
)
Other (c)
 
12

 
2

Balance, June 30
 
$
2,168

 
$
1,840

(a)
Provisions for principal, interest and fee reserve components.
(b)
Principal write-offs are presented less recoveries of $254 million and $217 million for the six months ended June 30, 2019 and 2018, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(33) million and $(14) million for the six months ended June 30, 2019 and 2018, respectively.
(c)
Includes foreign currency translation adjustments of $3 million and $(5) million and other adjustments of $9 million and $7 million for the six months ended June 30, 2019 and 2018, respectively.
Card Member Loans Evaluated Individually and Collectively for Impairment
The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of June 30, 2019 and December 31, 2018:
(Millions)
 
2019

 
2018

Card Member loans evaluated individually for impairment (a)
 
$
650

 
$
532

Related reserves (a)
 
$
120

 
$
94

Card Member loans evaluated collectively for impairment (b)
 
$
82,580

 
$
81,322

Related reserves (b)
 
$
2,048

 
$
2,040

(a)
Represents loans modified as a TDR and related reserves.
(b)
Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans, and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment.
Changes in Card Member Receivables Reserve for Losses
The following table presents changes in the Card Member receivables reserve for losses for the six months ended June 30:
(Millions)
 
2019

 
2018

Balance, January 1
 
$
573

 
$
521

Provisions (a)
 
477

 
487

Net write-offs (b)
 
(426
)
 
(435
)
Other (c)
 
(8
)
 
(15
)
Balance, June 30
 
$
616

 
$
558

(a)
Provisions for principal and fee reserve components.
(b)
Net write-offs are presented less recoveries of $184 million and $178 million for the six months ended June 30, 2019 and 2018, respectively. Amounts include net (write-offs) recoveries from TDRs of $(6) million and $2 million, for the six months ended June 30, 2019 and 2018, respectively.
(c)
Includes foreign currency translation adjustments of $3 million and $(1) million and other adjustments of $(11) million and $(14) million for the six months ended June 30, 2019 and 2018, respectively.
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 June 30, 2019 and December 31, 2018:
(Millions)
 
2019

 
2018

Card Member receivables evaluated individually for impairment (a)
 
$
167

 
$
128

Related reserves (a)
 
$
8

 
$
7

Card Member receivables evaluated collectively for impairment
 
$
58,541

 
$
55,765

Related reserves (b)
 
$
608

 
$
566

(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.