Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables. We also extend credit to consumer and commercial customers through non-card financing products, resulting in Other loans. Reserves for reporting periods beginning after January 1, 2020 are presented using the CECL methodology, while comparative information continues to be reported in accordance with the incurred loss methodology in effect for prior periods.


(Millions)	2020		2019
Global Consumer Services Group ^(a)	$	57,907	$	73,266
Global Commercial Services	12,152		14,115
Card Member loans	70,059		87,381
Less: Reserve for credit losses	5,628		2,383
Card Member loans, net	$	64,431	$	84,998
Other loans, net ^(b)	$	4,129	$	4,626

(a)Includes approximately $25.5 billion and $32.2 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of June 30, 2020 and December 31, 2019, respectively.

(b)Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.7 billion of gross PPP loans as of June 30, 2020. Other loans are presented net of reserves for credit losses of $423 million and $152 million as of June 30, 2020 and December 31, 2019, respectively.


(Millions)	2020		2019
Global Consumer Services Group ^(a)	$	14,977	$	22,844
Global Commercial Services ^(b)	22,576		34,569
Card Member receivables	37,553		57,413
Less: Reserve for credit losses	519		619
Card Member receivables, net	$	37,034	$	56,794

Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of June 30, 2020 and December 31, 2019:


2020 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	56,959	$	240	$	202	$	506	$	57,907
Global Commercial Services
Global Small Business Services	11,894		69		42		84		12,089
Global Corporate Payments ^(a)	(b)		(b)		(b)		—		63
Card Member Receivables:
Global Consumer Services Group	14,778		51		37		111		14,977
Global Commercial Services
Global Small Business Services	$	12,904	$	103	$	48	$	119	$	13,174
Global Corporate Payments ^(a)	(b)		(b)		(b)		$	235	$	9,402


2019 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	72,101	$	322	$	253	$	590	$	73,266
Global Commercial Services
Global Small Business Services	13,898		56		40		85		14,079
Global Corporate Payments ^(a)	(b)		(b)		(b)		—		36
Card Member Receivables:
Global Consumer Services Group	22,560		86		58		140		22,844
Global Commercial Services
Global Small Business Services	$	17,113	$	99	$	58	$	134	$	17,404
Global Corporate Payments ^(a)	(b)		(b)		(b)		$	136	$	17,165

(a)Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. Delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).

(b)Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.


	2020															2019
			Net Write-Off Rate												Net Write-Off Rate
			Principal Only^(a)			Principal, Interest & Fees^(a)			30+ Days Past Due as a % of Total			Principal Only^(a)			Principal, Interest & Fees^(a)			30+ Days Past Due as a % of Total
Card Member Loans:
Global Consumer Services Group	2.7	%		3.3	%		1.6	%		2.4	%		2.8	%		1.4	%
Global Small Business Services	2.1	%		2.4	%		1.6	%		1.8	%		2.1	%		1.3	%
Card Member Receivables:
Global Consumer Services Group	2.2	%		2.4	%		1.3	%		1.7	%		1.8	%		1.3	%
Global Small Business Services	2.4	%		2.6	%		2.1	%		1.8	%		2.1	%		1.6	%
Global Corporate Payments	(b)			2.2	%		(c)			(b)			(d)			(c)

(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(c)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total was 2.5% and 0.7% for the periods ended June 30, 2020 and 2019, respectively.

(d)Net loss ratio was the credit quality indicator for GCP Card Member receivables for prior periods, and represents the ratio of GCP Card Member receivables write-offs, consisting of principal (resulting from authorized transactions) and fee components, less recoveries, on Card Member receivables expressed as a percentage of gross amounts billed to corporate Card Members. The net loss ratio for the six months ended June 30, 2019 was 0.07%.

Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs).

In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program 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 our TDR disclosures), (ii) placing the customer on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the customer exits the modification program. Upon entering the modification program, the customer’s ability to make future purchases is either limited, canceled, or in certain cases suspended until the customer successfully exits from the modification program. In accordance with the modification agreement with the customer, loans and/or receivables may revert back to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program.

Reserves for modifications deemed TDRs are measured individually and incorporate a discounted cash flow model. All changes in the impairment measurement are included within provisions for credit losses.

In response to the COVID-19 pandemic, the United States introduced the Coronavirus Aid, Relief, and Economic Security Act, which among other things provides financial institutions with the option to temporarily suspend (i) certain requirements under U.S. GAAP for loan modifications related to COVID-19 that would otherwise be treated as TDRs and (ii) any determination that a loan modified as a result of COVID-19 is a TDR (including impairment for accounting purposes). Based on the nature of our programs, we have not elected the accounting and reporting relief afforded by this guidance and continue to report modifications as TDRs.

In the first quarter of 2020, we created a Customer Pandemic Relief program for customers who have been impacted by COVID-19 to provide a concession in the form of payment deferrals and waivers of certain fees and interest. We assessed the Customer Pandemic Relief program and determined that eligible loan modifications were temporary in nature, for example, less than three months and not considered TDRs. Once customers exit the Customer Pandemic Relief program, they revert to their original agreement and repay outstanding balances, or if they continue to face financial difficulties, they can enroll in a financial relief program, in which case they are reported as an “In Program TDR.”

Impaired Card Member loans and receivables outside the U.S. are not significant as of June 30, 2020 and December 31, 2019; therefore, such loans and receivables are not included in the following tables unless otherwise noted.


	As of June 30, 2020
							Accounts Classified as a TDR ^(c)
2020 (Millions)	Over 90 days Past Due & Accruing Interest^(a)		Non- Accruals^(b)		In Program^(d)		Out of Program^(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group ^(f)	$	321	$	239	$	1,175	$	181	$	1,916	$	475
Global Commercial Services	38		54		421		44		557		130
Card Member Receivables:
Global Consumer Services Group	—		—		201		15		216		28
Global Commercial Services	—		—		625		34		659		84
Other Loans^(g)	3		3		162		2		170		35
Total	$	362	$	296	$	2,584	$	276	$	3,518	$	752


	As of December 31, 2019
					Accounts Classified as a TDR ^(c)
2019 (Millions)	Over 90 days Past Due & Accruing Interest^(a)		Non- Accruals^(b)		In Program^(d)		Out of Program^(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group ^(f)	$	384	$	284	$	500	$	175	$	1,343	$	137
Global Commercial Services	44		54		97		38		233		22
Card Member Receivables:
Global Consumer Services Group	—		—		56		16		72		3
Global Commercial Services	—		—		109		30		139		6
Total	$	428	$	338	$	762	$	259	$	1,787	$	168

(a)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR.

(b)Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as a TDR.

(c)Accounts classified as a TDR include $37 million and $26 million that are over 90 days past due and accruing interest and $10 million and $10 million that are non-accruals as of June 30, 2020 and December 31, 2019, respectively.

(e)Out of Program TDRs include $197 million and $188 million of accounts that have successfully completed a modification program and $79 million and $72 million of accounts that were not in compliance with the terms of the modification programs as of June 30, 2020 and December 31, 2019, respectively.

(f)Global Consumer Services Group (GCSG) includes balances outside the U.S. of $92 million and $93 million that are over 90 days and accruing interest as of June 30, 2020 and December 31, 2019, respectively.


	Three Months Ended June 30, 2020									Six Months Ended June 30, 2020
	Number of Accounts (thousands)	Outstanding Balances (millions)^(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extensions (# of Months)	Number of Accounts (thousands)	Outstanding Balances (millions)^(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	116	$	1,103	14	(b)	140	$	1,298	14	(b)
Card Member Receivables	22	744		(c)	18	25	818		(c)	19
Other Loans^(d)	5	$	154	4	15	5	$	154	4	15
Total	143	$	2,001			170	$	2,270


	Three Months Ended June 30, 2019									Six Months Ended June 30, 2019
	Number of Accounts (thousands)	Outstanding Balances (millions)^(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extensions (# of Months)	Number of Accounts (thousands)	Outstanding Balances (millions)^(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	17	$	137	13	(b)	34	$	265	13	(b)
Card Member Receivables	2	50		(c)	26	4	90		(c)	27
Total	19	$	187			38	$	355

(a)Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance.

The following table provides information with respect to loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. For all customers that defaulted from a modification program, the probability of default is factored into the reserves for loans and receivables.


	Three Months Ended June 30, 2020							Six Months Ended June 30, 2020
		Number of Accounts (thousands)			Aggregated Outstanding Balances Upon Default (millions)^(a)		Number of Accounts (thousands)			Aggregated Outstanding Balances Upon Default (millions)^(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	3		$	24		7		$	52
Card Member Receivables	1		9			2		18
Other Loans ^(b)	1		1			1		1
Total	5		$	34		10		$	71


	Three Months Ended June 30, 2019							Six Months Ended June 30, 2019
		Number of Accounts (thousands)			Aggregated Outstanding Balances Upon Default (millions)^(a)		Number of Accounts (thousands)			Aggregated Outstanding Balances Upon Default (millions)^(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	3		$	18		5		$	36
Card Member Receivables	1		5			2		8
Total	4		$	23		7		$	44